Replying to Avatar Geist

The risk is in loaning n money to 10 people (10n) without interest and one of them not paying you back, you only receive 9n back. You would have been better off not loaning it at all under every circumstance. Compare this to loaning 10 people n money and charging x interest, if one bails on you then you receive 9nx back, and lenders set x to ensure 9nx is higher than 10n.

I think I can see your guys point on not making loans for consumer spending or even a home loan, because they don't generate a cash flow, I'm not sure I'd call it evil but something does seem up with it. Loans for equity do make more sense.
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Finrod Felagund 2y ago

Investments are different, because they have risk factored in.

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volition 2y ago

Comes down to the time value of money. Under fiat banks seek to add a component of interest to cover the inflation, the rest is the real interest rate that banks charge for the time value and risk of loss.

So banks will work under a Bitcoin system, simply not charging interest to cover inflation, comparably the interest rate would be lower all else equal.

No bank will lend someone who is not willing to repay or does not have the capacity to repay. So a blatant loan to say an unemployed individual for consumption is not going to happen. No one in their right mind would lend us Cb a person their hard earned Bitcoin.