Topic: [ANN] BTCJam - Peer to Peer Bitcoin Lending - page 39. (Read 204974 times)

You need to look harder, from your first example loan:


That little "chain link MtGoxUSD" on a loan means "tied to MtGoxUSD rate" = USD denominated loan.

No, these were BTC nominated. Look up these user names and see for yourself, everything BTC nominated. I havent seen any USD loans at all at BTCJam.

Thoses were all just USD denominated loans.  You should only make USD denominated loans if you are short BTC (believe BTC is going to go down in price relative to USD).

If you make USD denominated loans and the price of BTC is rising you will get back less BTC than you loan out.

That is just a fact.

No scam.

Just someone (you) that failed to understand the contract.

Not only are there 50% scammers on that platform, BTCJam *itself* is stealing money! Even if the other 50% of honest borrowers are paying back the loans BTCJam will silently steal up to 60% of the repaid amount! I suggest renaming it to BTCScam! Look at this screenshot:

And what's wrong with storing the address?

That's what the Address Book is for.

-- Smoov

In that case I should let you know about this listing, and subsequent communications, from 'Kidcamico':
https://btcjam.com/listings/2198

He claims that he funded an expired address. I have explained to him that, if this is the case, you can send him the coins back (or better still, send them on to his creditors, like ME). Even if you do not wish to disclose publicly whether or not the transfer happened as he says, and/or whether he's communicated with you, I feel you should at least be aware of this situation.

Has anyone tried opening up an arbitration thru judge.me?  I am not sure the exact process to do it for BTCJam (since that is the arbitration method that is now specified in the terms of use).  I tried going to their site, but they say there is a fee ($299) and I am not certain if that is split between BTCJam and the person seeking arbitration and the terms of use are unclear.

To trade notes the user must have his identity verified, sorry about the poor (missing) help page.

This will probably change in the future, it is related to the arbitration agreement.

This is only to prevent people from storing the address, all private keys are stored.

I didnt get my btc last time due to some auto payout setting

this question was addressed earlier in this thread.  he said something like you might still get your btc but it's not guaranteed.

Question about the BTC deposit addresses: it says they're only valid for 24h. What happens if a user sends BTC to a deposit address that has expired? Because one current late payer is claiming that's what they did and why they're late. And that sounds like BS to me. Surely you keep the private keys to expired addresses?

Agreed. These changes occur so quickly with absolutely no information about them. It would be great if there was an FAQ page or something similar on the homepage that has information about all new features.

It's looking as though Ziggap has died, assuming they default on their BTCJam loan that will dwarf all the other defaults as it currently has a lot outstanding.

I just tried to invest in a note in the marketplace, and it said "You need to verify your personal information before trading notes". I previously purchased a note on April 9 with no problem... Are unverified investors not allowed to buy notes anymore? Just invest in loans themselves during initial funding? We ARE still allowed to invest in loans, right?

I like some of the new features I have seen implemented over the last few months, but it would be nice if we could read about policy and feature changes in this thread and on the BTCJam homepage, and/or get an email notice about them, instead of randomly encountering them.

Same here. I successfully created a few notes on April 15, but I tried to create another one a few days ago, and it was no longer working.

Same here..

Is anyone else have any problems with issuing notes? I have previously issued a sell order successfully, but now when I click 'issue sell order' absolutely nothing happens. I have tried various times with different loans over the past two days and nothing happens--no pop-up or page change or anything (I don't remember what had happened before, but still something should probably happen...)

Most consumer loans do not have an early payment penalty nowadays, but if it is agreed to in advance it can apply.  However, it is not on BTCJam.  In simple math, they are overpaying until there are terms that expressly state prepayment is not allowed.  Your other points are valid from a risk management perspective, but not from an actual agreed upon terms perspective.  I have contacted the owner of BTCJam several times with my straight calculations showing the overpayment that is occurring, yet the loan terms still allow this.  It is especially important in the terms of my loan which was 2% every 7 days for 90 days for an 11 BTC Loan.  I made substantial payments in the beginning reducing the principal available for the interest rate calculation, yet I still end up paying the same as if I held on to the money longer.  That runs contrary to the fact their is interest and was not expressly stated at the outset.  By my calculations, I have already overpaid, but BTCJam has one more payment left.  However, all lenders have had their money back earlier than had I held on to it, and could have invested in other loans.

Fact is, BTCJam is doing a poor job on defining its loan terms which will lead to issues if it ever tries to become reputable and force collections on defaults.  There are a reason there are a lot of terms on normal consumer loans, including credit cars and other short-term loans are more than a paragraph.  If BTCJam cares at all about collectability, it will emulate a lot of what sites like Prosper.com has done (including putting together a formalized promissory note like the one at http://www.prosper.com/legal/promissory-note-sample/).  Right now, it seems to encourage poor behavior and the owner feigns ignorance. Rant done.

No, they are not overpaying as the natural interest of the deflationary bitcoin is negative.  Before even being compensated for the time value of money I need to charge 33% risk premium just to cope with the 25% default risk on this site. I understand you don't want to pay interest over money not owed, but otoh it is also common to pay a fee for early redemption.