the value of bitcoin is irrelevant at this point in time. you are in the "distribution period" - in essence, bitcoin is like the Euro prior to when it actually went live (2002 IIRC).
[–] awildbanannaphone ago (edited ago)
This is retarded. Go look at companies like Apple and GE they run their own banks for themselves. Before GE got wrecked by a certain (((CEO))) this structure was so optimal because it was like capitalism within a large corp itself.
Edit: as someone whose going into finance (initially for greedy reasons but now I see I could help clean up the country when I get old if I stick with it) there is alot of ideology hidden in this site regarding usuary and what not.. usuary lowers economic friction. If you ever state something along the lines of the economy is growing and thats good then you should like usuary... The predatory issue comes in when the largest banks in the USA coordinate with the federal reserve so the banks can reclaim collateral for loans given to be well timed so a large portion is paid off and the banks ALSO take the assets.
I may end up putting a little website together in a few years that will teach people about finance at many levels. It is kept inaccessible for a reason.
[–] JohnGaltApproves ago
Lending money is a form of investment based on time preference. However, the total amount due in return, and expectation placed on timeframe for repayment before default should be fixed, not variable, and should not be allowed to be compounded.
If I have money and you wish to borrow $100 from me, you and I can agree that you’ll repay me $110 by the first of July, and if you fail to do so, the amount itself doesn’t increase, but I will inform others that you have failed to repay in full and on time.
What is wrong is if neither you or I have money, but I have connections that allow me to borrow from somebody else at a low rate, and then turn around and “lend” that same money to you at a higher rate, and when you fail to pay me for what I’ve “lent” you, I turn around and not only report you, but I also charge you increasing fees and compounded “interest” on your original loan.
The lender in today’s market has no wealth to lend, and no risk is taken in doing so. If their borrower defaults, they sell the debt and move along. If enough borrowers default, the government bails them out so they can keep lending.
[–] 64544259864775774431 ago
So what happens if you make a loan and no product is ever produced? What if it's to start a plumbing business?
[–] virge [S] ago
Plumbing business produces profit. Profit is used to pay loan/investment. This isn't a complicated principal.
[–] 64544259864775774431 ago
But OP says no money interest. I'm supposed to loan money at a loss? Who would do that?