Hard goods : hard money (2/n)

=========================

All transactions would take place in BTC. For example , a customer loans a car for 1 BTC, then returns the car 2 years later expecting to receive the 1 BTC minus the pre-negotiated terms for damage and depreciation. The customer will expect that contract to be honored and paid out in bitcoin and not the fiat value of the depreciated car. Similarly, the depreciation and damage withheld under the contract should be valued in BTC and NOT in the new fiat value of the damage and depreciation. For both parties it should be as if fiat simply does not exist.

This requires a high level of trust that the business will hold the bitcoin as bitcoin not fiat during the length of the contract. The bitcoin should be dutifully and visibly held as a UTXO during the life of the contract.

Next time… what security protocols should be in place to reduce counterparty risk?