What happens when bitcoin loans start to appear? What happens when bitcoins loans start to appear? 

Loans have interest rates that "create additional value". Given the limited amount of bitcoins, couldn't we realistically run out of them?

BitBanker loans 1000BTC to the user with a 5% interest. The loan could be backed up with, say, a house.

The user then has to pay back 1050BTC, somehow acquiring the 50BTC deficit.

Given how quickly interest on top of interest grows, won't the bankers get to 21 million BTC quite quickly?
Given how quickly intrest on top of intrest grows, won't the bankers get to 21 million BTC quite quickly?


Sure, but is that really meaningful? Let's say that I loan you 1 BTC, with the terms that I get 10% interest per day. Before the year is out, you owe me more bitcoins that actually exist. The face value is the amount that the loan is supposed to be worth, if everybody keeps their word. 

However, the real value is much lower - you're a random stranger on the internet, and you're unlikely to come up with quadrillions of dollars. 

Bitcoin can't save you from untrustworthy borrowers.