Topic: bitcoins and P2P lending - page 2. (Read 1199 times)
It's 100% dead If we speak about platforms like BTCjam or Loanbase, those websites takes documents and your online accounts and give you a grade based on those informations which could be inaccurate or even fake and of course , anyone who use fake info is ready to run with the funds and don't look back . Loaning on Bitcointalk is much better where most of the users give a collateral and you can spot most of the scammers just by looking at their trust profile or their posting history.
The only experience i have was a small test i did depositing 0.05BTC to btcjam little over a year ago.
I made (very) small investments into 12 projects.
I allways made sure the borrower had a good rating, i liked the project and the loan wasn't suspicious (suspicious, for example, are people that have repayed 5 BTC in the past, and suddenly try to take a 50 BTC loan).
After a year, i stopped my exeriment with the following statistics:
Net return: -21%
5/12 borrowers defaulted, 1/12 is more than a month late (so in the end, i suppose 50% of the borrowers will have defaulted on their loans).
I've depostited 0.05BTC, and i've withdrawn 0.032792 (using 3 transactions, each transaction requires a fee). Substracting the fee of 0.0003681 I payed when funding my account, i can say:
I have sent 0.05 BTC to btcjam, after a year and after both deposit and withdrawal fees, i have a total return of 0.0324239. So in the end, i've lost both a year of my time and 0.0175761BTC by investing on a p2p lending platform.
I made (very) small investments into 12 projects.
I allways made sure the borrower had a good rating, i liked the project and the loan wasn't suspicious (suspicious, for example, are people that have repayed 5 BTC in the past, and suddenly try to take a 50 BTC loan).
After a year, i stopped my exeriment with the following statistics:
Net return: -21%
5/12 borrowers defaulted, 1/12 is more than a month late (so in the end, i suppose 50% of the borrowers will have defaulted on their loans).
I've depostited 0.05BTC, and i've withdrawn 0.032792 (using 3 transactions, each transaction requires a fee). Substracting the fee of 0.0003681 I payed when funding my account, i can say:
I have sent 0.05 BTC to btcjam, after a year and after both deposit and withdrawal fees, i have a total return of 0.0324239. So in the end, i've lost both a year of my time and 0.0175761BTC by investing on a p2p lending platform.
The problem is what type of digital collateral would be the most acceptable for P2P lending online? We already are doing P2P lending in real life when we lend money face to face with our friends. In the Bitcoin world it could be done in a massive scale with strangers online, but again the problem of guarantee of payment. If you can answer what digital collateral is acceptable by all, then P2P lending will be easier to do.
I've been delaying writing this topic for a few days, but I'm sure its time to talk about it.
Before I begin, I'd be very interested if people could provide statistics of the amount of users who make some sort of re-payment after P2P lending has occurred.
With that said, I've seen that its almost impossible to guarantee, or even enforce users to keep up with P2P payments, after an agreement has been reached. It's even easier for them to create new accounts, and purchase any other prerequisites which is need to highlight integrity.
P2P lending is a great way to invest in talent, businesses and products. Its also a good method for passive income. How can we improve this, to provide more integrity and assurance both for the investor and investee?
Before I begin, I'd be very interested if people could provide statistics of the amount of users who make some sort of re-payment after P2P lending has occurred.
With that said, I've seen that its almost impossible to guarantee, or even enforce users to keep up with P2P payments, after an agreement has been reached. It's even easier for them to create new accounts, and purchase any other prerequisites which is need to highlight integrity.
P2P lending is a great way to invest in talent, businesses and products. Its also a good method for passive income. How can we improve this, to provide more integrity and assurance both for the investor and investee?
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