The thought that keeps coming up for me is, isn’t the creation of debt how the world became so fuck up in first place, creating money out of nothing then charging interest on it?
And do we really want to continue to support systems based on usury?About the only thing I appreciate about @neoxian is how open he is about the outrageous fees lol
It's a free market phenomenon, so I'm not sure if it'll go away at all. Although I don't use credit facilities in any serious capacity, it's something that plenty of people use..
There is nothing free about this market or the issuance of debt in it. A free market would be competitive in the offerings made, without a central bank to set interest rates and without restriction on who can participate in the marketplace or the terms they can set. Additionally, a free market doesn't involve stealing from one group of people to inflate a specific set of assets or services (i.e. healthcare, education).
I agree with you, assets should only be what is accountable and liquid on the block-chain to protect its value, on the other hand, I don't see where the obligation of the loan-bearer is assured. Were btc payments not built around anonymous transactions from day 1? Can somebody explain how and what collateral is established in these products?
Assurance of repayment doesn't need to be a feature of a credit system. Reputation is the important feature, where lenders can see a borrower's history of repaying small loans in consideration of offering terms on a larger loan. If repayment was assured, there would be officially zero risk to the lender, making loan issuance a job for a bot instead of a judgement call for a human.
If you feel my fees are outragous then you are welcome to undercut me and loan out to strangers for cheaper.