Topic: BTCjam - Any Thoughts or Experiances - page 4. (Read 57536 times)

The sad thing nowadays is that you have to assume that all people are corrupt and thiefs. Even guys like this one (who seem really legit) commit fraud for pennies ...

He seems to be a respectable figure, based on his CV.

In my defence, the borrower did have a solid plan with loads of details that matched his previous loan requests. All in all, I'm done with btcjam.

Borrowing 55 btc at once sure triggers red alert. Thats totally 25 % of all his repaid loan and as far as Im aware, people usually lost huge for borrowing A+ rating lender . The rating is totally stupid and btcjam should forbid these kinds of high amount to prevent more of this to happen in the future, something like limiting it to X btc would be ideal to avoid huge lost IMO

This one was A+, everything verified, clear picture, long loan history,...
He was asking for a 55 BTC loan while he repayed 200+ BTC in the past. Together with his rating, i tought he was a realiable loan, but then he defaulted

What is the borrowers rating who defaulted over you

I'm in a loss at the moment... My biggest borrower defaulted after just a couple payments...
There's a guy buying notes, but i need to verify my account in order to trade them
Guess it's not worth my time, so i'll basically stop investing and disregard my (small) loss and write it off as learning costs.

Out of interest, what sort of research did you do beyond looking at the credit rating? And what sort of interest do you earn typically?

Until now I could not withdraw money in BTCjam always appeared "withdrawal error" I'm sure all was fine no problems but that is what happened
I tried to send an email to support but never received a response. I also do not have an active loan is there experiencing the same thing and what should I do ?

Seriously? You couldn't take 3 seconds to read that post? Your response had absolutely NOTHING to do with his concern. Not even a little. And his concern is legitimate -- it's the same reason why people are losing trust in BCT users as well.

BTCjam is good site. but for peoples who can wait for long time. because btcjam takes long time to payback.. it is an lending btc site and it is like a third person between two peoples, when it get loans back from people then it pays to the lenders.

I agree that there are "many" borrowers who take their loans seriously. However there are many that don't.

As to your first question, this relates back to the fee structure. BTCJam has no incentive. They collected their fee when the loan was funded. They will scoop up occasional notes on bad borrowers when it is apparently in their interest to do so. Keep in mind, that their service that does this and has the ability to operate on information that is not available to investors when these loans are issued, NOR WHEN THE LENDERS ISSUE THESE BAD NOTES. Jam receives the paperwork, jam provides a rating, loan goes bad, investors dump, jam buys. This is after Jam, has already received their fee.

As to your second question. I don't think that is a question anyone on here can (or should) answer. If this is a big concern for you, you should probably consult a financial advisor and/or a lawyer.

I am now wondering what is going to happen to all of these existing US loans on BTC Jam will be handled (that in some cases still have some 12 months to run). It appears indirectly that BTC Jam has taken on the decision to deny any future loans to US users. I have seen no official announcement regarding this decision on the BTC Jam site, only indirectly from fellow users as well some pretty basic internet research.

I will agree that a lot of these US loans are crap, just like their global counterparts are...but many are good with those users faithfully honoring their obligations and many times clearly stating they are working towards a better rating so they can borrow on more competitive terms in the future. If there is no future for these borrowers on BTC Jam due to a geographic decision what is their incentive to make servicing their current obligations moving forward?? BTC Jam does not seem to take enforcement of unpaid debts that seriously, should I just write off the entire US portion of my investment in BTC Jam now or wait for the obvious to happen?

Sorry, I've been away for a while.

I know you are not saying this, and this is what you have observed, but that is ridiculous. I posted that as evidence that credit ratings are purely arbitrary. Phwner is from the US. What I was trying to get at is there is, among the plenty of fucked up things that jam does, no way to have any trust in the system that they have set up. How can one justify an A+ rating to one borrower and a D+ rating to another based simply on country? Not to mention, at least in my experience, as I'm from the US, that borrowers from the US are generally of a lower class of borrowers. The simple reason being is that people with good credit from the US, and I would have to imagine other western countries, have better and lower rate options for taking out loans. So why wouldn't they take them? Well it's because their credit is in the toilet. I broke this down for a US borrower a number of pages ago, you can find it.

It comes down to the simple fact is that there is an inherent conflict of interest when the same entity profits off of the amount of debt produced and is responsible for providing the credit ratings on the same debt.

BTCJam has posted in this forum and on this discussion a number of times. I may have been callous but my point has been clear. They are more than welcome to come on here and prove me wrong and provide a justification for the discrepancy that I have observed as an investor and what measures they have taken to mitigate the inherent conflict of interest that arises from their business structure.

It's definitely a gamble. If you are constantly throwing it all back in, you'd have better luck playing dice or slots -- at least then you know you lost due to luck and not because someone stole from you.

He's not incorrect.  I just looked at previous loans / what the person was rated and jumped in "hoping" that I got it right.

I didn't just pick the first loans I saw that were A+ rated.  But in the end it truly is luck (and having the stomach for knowing that you'll likely lose)

He just got lucky, there is no way to research anything - Pretty much all "borrowers" start off small, with "Reputation loans", then when they prove they can pay back a few coins, they make a big loan and then just run.

My point of view is to run away from that site, it's just a bunch of scammers enabling other scammers IMO.

How you did the research to know who will pay and not if most of them are fake? Can you give a point of view

In on two loans recently.

One A+ - 60 days.  Repaid well within the 60 days.
One C- - 365 days.  So far 9 of the 12 payments were made and he's only into month 3 of the loan.  So this one is in good shape too.

I've gotten lucky but I did some research before just tossing money at this (and it was a very small amount anyways).

Right now I've made more than I initially invested so I'm in the clear but I'll wait for the 2nd loan to complete before I move on to the next.

I know right? Wtf. Sure looks like a rich fuck who doesn't need any loans to me.... wth.  https://www.linkedin.com/in/dringdahl