#Firefish vs Bank loan
Why should I lock my BTC in the Firefish contract to borrow CZK/EUR for basicly the same or even higher interest rate than in a bank?
Yeah, through Firefish, the collateral is bitcoin, through bank it might be a house or so..
Perhaps it is just about P2P principle instead of B2C?
Because no bank wants to give you a loan. Or because you don't have a house, but you have BTC. Or because you don't want to support banks with your loan repayment money.
Well, besides the reason I mentioned above, my guess is that people borrowing on firefish are hoping that bitcoin will grow faster than their interest and they will be able to recycle the same, or less, bitcoins in new loans. Firefish doesn't want gradual repayments, but whole amount plus interest at the end date of the loan. Similar to bonds.
So you can take the same amount of bitcoins and pay ahe old loan with a new one.
yeah, but this is not about the selection to borrow from bank or firefish.
FF offers quite short periods in which the payback needs to be done, this is quite risky for them to loose their collateral..
Yes, it's risky, but it's a way to use BTC and not tax it's sale as getting a backed loan is not taxable income. Some people might like it more than standard loan as they don't want to give out thir personal details.
I think to loose the collateral is not convenient at all. They have to lock bigger value than they get in FIAT.
It cannot be used as a delayed exchange without taxation. :)
