is there a possibility of trustless loans somehow?
source: am tarded
Discussion
No because all loans are promises. They rely on trust to be repaid. They are inherently trust based. The only reason strangers give them to strangers today is because the government and Fed backstop the system. Otherwise it would only be people who actually trusted other people.
what about things like smart contracts?
i mean this between two users
doesn't have to be a user and a bank
hodlhodl kinda does this. lend bitcoin overcollateralized, get stablecoins. it will autoliquidate to the lender if margin hits or doesn't get paid back. each side holds a key and hh holds a key. if hh dies, there is still a way for the 2 keys to unwind the transaction.
I misunderstood nostr:npub1t3ggcd843pnwcu6p4tcsesd02t5jx2aelpvusypu5hk0925nhauqjjl5g4
I was talking about loans denominated in Bitcoin
I don’t think there will be many of those
But Bitcoin used as collateral for other lending? That will definitely continue.