BitcoinAlchemist on Nostr: P2P bitcoin-denominated bonds? Could be an interesting mechanism to facilitate loans, ...
P2P bitcoin-denominated bonds? Could be an interesting mechanism to facilitate loans, but I have questions.
How would one mitigate credit risk in a p2p context? Govt and corps issue fiat bonds to raise capital, and that works because people trust those institutions. In a p2p anon context that’s more difficult to assess. If Alice loans some money to Bob by purchasing Bob’s bitcoin bond, then what is stopping Bob from running away and not paying the BTC back?
If the BTC loan is over collateralised with more BTC, then what’s the incentive for taking out that BTC loan in the first place, when you already have that amount of capital to begin with?
How would one mitigate credit risk in a p2p context? Govt and corps issue fiat bonds to raise capital, and that works because people trust those institutions. In a p2p anon context that’s more difficult to assess. If Alice loans some money to Bob by purchasing Bob’s bitcoin bond, then what is stopping Bob from running away and not paying the BTC back?
If the BTC loan is over collateralised with more BTC, then what’s the incentive for taking out that BTC loan in the first place, when you already have that amount of capital to begin with?