[riptheworld]

You could use existing trusted lending Institutions, no? Investors can loan their excess Bitcoin to a lending institution that pools Bitcoin from multiple investors and loans it out to borrowers? In return, the investor receives interest on the loaned amount when it is paid back in full? If the loan isn’t repaid, the courts get involved to seize other physical assets from the borrower (cars, homes, etc.).

In some sense, we would be back to having banks with the exception that the bank now exists solely as an investment vehicle.

I guess I’m struggling to see what barriers prevent crypto currencies from being used in traditional financing?

[lottin]

Nothing prevents crypto-currency denominated loans in traditional finance. That was not the claim. The claim is that financing operations are not possible in so-called "decentralised finance".

[riptheworld]

Ahh I see! Thanks for the clarification!