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BTW, what's to stop someone from say loaning out 10x what you loaned out?

13 to 16 BTC invested here would have earned almost $2K in loan interest in a little over a month? Not too bad at all!

Nada actually.

As far as I can tell, the only impact should be that you might effect rates via supply and demand - more BTC available should drive the interest rate down a little but I have no idea how much. Of course, you'd also be risking that much BTC to a potential hack on one of these exchanges.

It's actually kinda neat to see how even someone with a small stack can influence local exchange interest rates due to the fact that we're still in the very early stages of this revolution.

Inning 2 of 9 is how I've often heard this how this phase of BTC societal acceptance has been described.