[bunderbunder]

> You want to borrow bit coins so that you can improve your business and then pay back the coins with increased profits due to the improvements.

That doesn't really answer the question. Grandparent wasn't asking "Why would you want to borrow BTC?". It was asking, "Why would you want to borrow in a deflationary currency such as BTC rather than a traditional, inflationary currency?"

As others have pointed out, the most obvious practical reason why a borrower might specifically desire a BTC-denominated loan is in order to short sell Bitcoin. For something like a business loan, it seems intuitive that choosing BTC over a traditional currency would accomplish little aside from maximizing the interest rate on your loan (in real terms). Admittedly there may be plenty of unwary buyers who'll happily enter into a loan like that without doing any math first - the entire payday/title loan industry is built on this fact - but an operation relying on that unfortunate fact doesn't jibe too well with the stated goal of behaving more ethically than the existing financial establishment. So hopefully there's something else to it?