Let's say that I am able to convince my local bank to borrow 1 Bitcoin from me today, with them allowed to hold it for at least a year before I am able to ask them to give it back. After a year, if I choose, I can allow them to keep it indefinitely (or for another year, etc.).
The point of this would be for me to receive a monthly interest on the Bitcoin, in fiat, put into my personal bank account which I already have with them.
In other words, I "loan" them my 1 Bitcoin, and they give me interest... indefinitely. This is where my question comes in:
Will they own my 1 Bitcoin at some point, after "paying it off"? I don't want that. I want my 1 BTC, which I have given up control over with the assumption that they aren't going to run away with it or fold as a bank, to earn me a perpetual income (however small it may be) simply for them "having" it.
In this kind of situation, is it implied that the bank at some point will own it and not have to give it back to me? Or is the interest forever?
If they are simply "paying it off" based on the initial value when I originally sent it, this is useless to me. If they have to pay forever (unless they send me back the Bitcoin, terminating our agreement), then that's at least interesting (no pun intended) to me.
If the Bitcoin price skyrockets, I expect that my monthly sum will go up proportionally.
If the Bitcoin price remains exactly the same forever, I expect to perpetually get the same amount of fiat monthly.
If the Bitcoin price plummets, I expect that my monthly sum will go down to near-zero or even full-zero, but never "negative".
As in, I never have to pay them any money, and I never lose my 1 Bitcoin. The only risk for me is that they will steal my coin (unlikely) or that the price goes to such a low level that it's "pointless" and I'm temporarily locked out of using the Bitcoin, yet not getting any money.
I make the assumption that our agreement/contract says that they pay me the monthly fiat amount based on the current Bitcoin price -- not the price when we originally entered into the agreement and I sent them the Bitcoin.
Have I correctly understood this? Or am I fundamentally confused about something? I have a nagging feeling that they may be "paying off" my loan to them and that it will stop at some point, with them keeping the Bitcoin and me receiving no more money.