Sure, there's definitely an argument for that, which is why I don't think anyone is claiming it's explicitly "wrong" for ineededausername or anyone else doing this to do so.

It also isn't wrong for all the villagers to take their animals to graze on the village commons; the end result is still that they kill off all the grass in the commons and nobody gets to graze their animals, though.

Obviously I paint a more dire picture than is really warranted here, and if pirateat40 had an opinion on this he'd probably have stepped in already. I just wanted to point out possible downsides of people acting in their own self-interest here. If I did so, (almost?) none of you guys would have any income from this anymore, which is "right" by some definition of me risking more by being his first lender, but still feels like a dick move. Of course, if there are no restrictions on it, if you don't do it, someone else will, so why not? It's a bit of a thorny issue, and one that was bound to arise.

I won't say I judge people who do do it, but I'm not comfortable with intentionally ejecting people myself.

'nuff said.

Thanks for making an official statement on this!

I'd just like to add that even though the membership of your bank is mostly public, seeing a known lender of yours ask for a loan publicly does not necessarily mean they are performing interest rate arb, so borrowers shouldn't necessarily be penalized unless they make it really obvious they're doing it.

As an example of non-arby things to do with a loan while lending, I see nothing wrong with taking short-term loans to do everyday business while leaving one's coins with the pirate bank. I just feel uncomfortable with intentionally ejecting younger accounts to grow one's own profits.

http://btclending.com/ is down? Can't connect

Am I the only one here that thinks this entire thing will end badly?

+1

There's always a non-zero risk of defaulting in any loan situation. As a compulsive loaner on IRC, pirateat40 was just another borrower to me, and I evaluated him as I do with anyone else and decided it seemed safe enough for me to risk it. His actions since my initial loan to him have reinforced my trust in him, but anyone who assumes you can make big money with no risk is going to get burned eventually.

Personally, I'd be pretty bummed if he disappeared with my money, but I won't have trouble making the rent and will probably keep dealing bitcoins with other people. And on the grand scheme of things, I still think this deal has probably one of the highest reward/risk ratios out there.

So anyway, I think it's a lot more likely to end well than to end badly, but one can never be sure the only difference between us is that I've dealt with pirateat40 a hell of a lot more than you have. That could either cloud my objectivity or give me more information to form a correct opinion, and I guess time will tell which

tl;dr: yours is a valid concern, and is definitely one that all lenders should be aware of at all times, but I think the risk is low, and I'm risk-tolerant enough to bet a lot of "real money" on that viewpoint

both of them.

Sounds like good collateral