Is P2P lending a predictor of a challenging future for Bitcoin?

12/29/2015 05:35:00 pm Unknown 0 Comments


So this morning I woke up asking myself this simple question, If Bitcoin achieves mass adoption, how would we solve the problem of ever increasing debt?

This blog post is more the ramblings of a crazy man than a scientific theory, but bear with me as I elaborate.

I have been investing in p2p lending sites for almost 2 years now, and constantly been running into the same problem........ There is no rule of law. This means that people can borrow money and not pay it back with nothing to stop them except a loss of reputation, which is not always tied to a real human being anyway.
I often have told myself that this is fine and it's the way the world should work, in this way we can weed out the bad lenders and too much borrowing would naturally correct itself as lenders are more careful of who they lend to. But is this a good thing? And is this the only solution a market would find?
What has upset me about the situation with non-paying borrowers is the way lenders sometimes become very aggressive in their comments about them, you will frequently see the term 'scammer' being used for anyone who decides they are not willing to pay a loan back. Granted often these people never intended to pay back the loan, so the label is correct, but the blanket aggression is worrying. I've also seen individual lenders hoping that non paying borrowers get arrested and thrown in jail and things as extreme as that.



This has lead me to wonder, how much will the lenders, who after all are just regular humans like me or you (perhaps), exploit the borrowers and what types of laws or rules will be introduced regarding the non payment of P2P loans. Currently the world only functions because new money is created to pay down old debt, but with Bitcoin that's simply not possible, so what would be the alternatives?
furthermore, who would be incharge of these laws, given the international nature of the internet?

I'm sure someone will correct me, but wasn't this the problem that lead to interest being outlawed under the 'usery' laws in days gone by when Gold was used as money?

Most of the sites impose a fixed interest rate based on the users credit rating, but this is also wrong for so many reasons and instantly kills the short term loan market on any platform that introduces it.

So what is the answer? How can we lend to each other without asking the borrower to put up their liberty as collateral? QE is a dirty word in Bitcoin circles, but without it, is it possible for our money to work for us all?

Let me know your thoughts in the comments below,

also check out my new site when you get a chance, and keep your ears peeled for more information about AdFete, It's a reallly interesting new project I'm currently working on.

www.cryptosi.com

So this morning I woke up asking myself this simple question, If Bitcoin achieves mass adoption, how would we solve the problem of ever inc...

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