Topic: Building Credibility - page 2. (Read 1960 times)

Please send me your cat as collateral for a lower interest rate - it might cost you $1000, and there will be six month quarantine.

or accept zero collateral implies higher risk and interest rates

That is a very good analogy!


Thanks for supplying the TL;DR, i will add a notion in the OP directing to yours if you don't mind.

And that's true Payb, i typically see in one or two directions, that's why i like to have discussions like this, your post makes a good point.

You have valid points and I think we all need to remember that we're basically in the wild west right now with the Bitcoin economy. Things will get better and new ways to handle loans and lending will become the norm....but until then it's six shooters on main street. 

Looking around here i think the "Borrowing/Loan's" of BTC is a pretty neat idea, but after reading several threads i started to notice a trend of people not showing up again or disappearing, only for another to show up and do the same, this hurts the honest people, like me for example, most of you might think immediately somebody like me would be out to take your BTC's. What would make you come to that conclusion? Let's go through the loops.

I figure a good solid idea for BTC trading would be something along the lines of what Heatware does, this is just one idea, here is an example of my heatware: http://heatware.com/eval.php?id=76821

Just from that little bit of information you might not can tell if i were an honest person or not, but it's a start.

So how else can we build credibility? i think 2000 posts and 20 posts shouldn't make any difference, post count can't particularly mean anything when you can just open a new account, besides that, i read more than i talk, occasionally i have something to say but chances are it's already been answered. A better explanation of that would be: i have been a member of the Overclockers forums for about 2 years and i only have 400 posts, Tera Online forums as well, before they took down the forums i had about 245 posts and i joined on 2009, on average i viewed the website forums atleast twice a week, so i don't think post count would be entirely fair for an individual like me.

I don't think short term/high interest get's much business, rather it scares people away, more-so the type of person who would actually pay you back. Right now i'm mining almost 2BTC a day, almost, not quite, i'd love to invest in another mining rig while keeping it "Future proof" for adding more GPU's, buying from the egg i would estimate that would put me roughly in the $700 range getting another couple of 6870's another test bench, power supply/motherboard, pretty much everything i need to push out ~620MH/s, that's roughly alittle less than 130 BTC at the current exchange, let's break that down a bit, i make ~2BTC/Day, let's not include the new rig because that would just be a bonus or make up for internet outage/power outage/failed GPU anything that could happen. That would put me just over 2 months paying it back, there is really no way i would ask for that amount of BTC when in a few months time that amount could lower and the loaner would really loose, not just that but i actually am in such hard times that i am using BTC to pay all of my electricity, so in my position i would have to find a way to arrange the payments so i make enough to cover energy usage.

This is why banks draw out loans over so much time, it takes average people, a year or so to pay back a loan, that's an average i pulled out of my butt because it's taken me maybe 2-3 years to pay off something while still being able to pay my priorities. This is where interest makes money, it has to be small enough that you don't really "feel" anything coming back (profit) for quite awhile, because the lendee needs to feel the same way. So in perspective if i borrowed 130 BTC, i mine aprox. 60 BTC in 30 days, i use 40 of them for my expenses, i would have to agree upon a ~20 BTC payment every 1st of the month to realistically pay it back and if there is extra i would apply it just to speed things up, i don't much like being in the position of owing back. This is more for the lenders to think about than anything, getting smaller payments might "Keep the honest man, honest" so to speak, Disclaimer: no relation to me.

That's a large loan in my opinion so lets back it down to 10 BTC, that is a little easier to swallow as a loss, but you still don't want to lose anything, this is where i think collateral should apply, it's universal actually, it could apply more-so to the larger loan, many banks won't give people with bad or no credit a credit card, it's difficult to get started and i think it's as well should be with proof all over these forums, when it comes to fraud somebody looses, and it's typically the bank/lender.

I don't know about you guys but i like my privacy, handing out my SSN for a credit check or my name and address feels just as shady as me not wanting to give it out. So there must be other methods, companies around the world have thought on this same prospect to help sort out the dishonest what can we learn from their practices?

Another thing, when BTCs went from $20 to ~$1 i had to shutdown, i wasn't around for atleast 4 months, iv'e seen that looked at as a deciding factor for giving loans to people.

I mainly wrote this because at some point or another i wouldn't mind saying "Hey so-and-so, you got a couple hundred BTC i can use?" and not be scanned like a criminal. I will probably never hit 200+ posts anytime soon, my credibility by most means may never stand out, because i am one of the possibly few people who doesn't have much to say to often, i don't really have anything to sell or trade, and i wouldn't make a loan if i knew i couldn't pay it back, a person like me would never be able to establish credibility by the time everyone's guard is up so high, it can't be reached, atleast not by me.

I'm interested in hearing your thoughts, please feel free to post your thoughts, i'm interested in what you think.