At least they lost the collateral that they put up for the loan right?
After burnside closed down his BTC and LTC stock exchanges back in 2013 there has been no way for a borrower to use collateral for loans on btcjam. 
Topic: Careful with BTC loans (Read 2989 times)
But, if BTC pretends to be an actual currency, how will loans work? Because loans have to exist, otherwise unless you inherit money, you are out of the game if you want to start a business and whatnot..
Collateral. Most banks give loans with collateral. Don't pay your home loan? Your bank gets the house. Don't pay your car loan? The bank gets the car.
They sometimes give smaller loans to customers with good credit with no collateral such as a personal loan but the worse your credit, the lower the amount.
There are payday loans where you sign a contract to give them your paycheck if you do not pay. They cover everything very well in writing to make sure that if you default they get your check.
The best loans currently for bitcoins are on the exchanges, they pay you interest daily and the site makes sure that the person has enough money to pay you back at all times. If it gets close to going below that amount, everything is paid back.
In mainstream economy world i know many cases that using dollar or euro to do bullshits.. Small example in Greece before 3 days the stock market lost 15% in just 24 hours and many investors lost for one more time their money.
I think in your mind that case of loss is good but when you lost bitcoin in a invest site like BTCjam is evil?
I think in your mind that case of loss is good but when you lost bitcoin in a invest site like BTCjam is evil?
In every situation where you lose money, meaning BTC or USD or € is WRONG. Just to point, lose the BTC trust because of these kind of things for me, I don't care because I'm familiar with the BTC but, how would explain an amateur that these actions happen? You're not promoting very well the currency or the system (in this case P2P).
What the loan pages need to do is provide more security to their investors.
a bitcoin loan in the amount of 0.00101 bitcoins at 9.0% interest every 3 days.
I'm not sure what you expect to be honest.
The interest rate you charge is supposed to reflect the risk and provide a small profit.
A bank may charge me 5% a year for a few thousand ££ loan as it considers me low risk.
A pay day lender may charge someone the equivalent of 2000% per year as they're a much higher risk. I have read that thousands and thousands of people are in default on these types of loan, but, that's because they're lending to irresponsible people that are high risk.
Charging 9% (compound interest) every 3 days would give you something like 33,000 times your initial investment after a year. If you ask me, that is reflecting a pretty insane risk of non-payment.
So, he didn't pay - what did you expect?
What expect? To pay. Simple. Making some calculations you're right but make loans with BTC it seems to me a healthy way to build a business; you borrow, the other guy invest, both make profits and everybody happy. That's the fantasy world but in real world we all know isn't like that because I know better (now that I'm in this situation) there are people scamming and using the name of BTC to do bullshits.
That's why I said CAREFUL becuase I'm not condemning loans with BTC, on the contrary, I urge you to invest and help other people to fight against banks which loans plan are irrational. I hope BTCjam to protect more the investor with more anti-scamming policies.
Many scammers on BTCJam. Don't trust those "verifications". After all, it's gambling.
There are many people, honest people asking for loans in order to invest in their companies and have a history behind them with full support of the community. Gambling is put like I did in this particular loan, without knowing better the person and without make basic math. I will continue using and now carefully (obviously) paying lots of my attention on the person and the purpose. Bitcoin is about trust, NOT BLIND TRUST. So, I'm saying again like Coinsortium: INVEST WITH CAREFUL[/i]
In mainstream economy world i know many cases that using dollar or euro to do bullshits.. Small example in Greece before 3 days the stock market lost 15% in just 24 hours and many investors lost for one more time their money.
I think in your mind that case of loss is good but when you lost bitcoin in a invest site like BTCjam is evil?
a bitcoin loan in the amount of 0.00101 bitcoins at 9.0% interest every 3 days.
I'm not sure what you expect to be honest.
The interest rate you charge is supposed to reflect the risk and provide a small profit.
A bank may charge me 5% a year for a few thousand ££ loan as it considers me low risk.
A pay day lender may charge someone the equivalent of 2000% per year as they're a much higher risk. I have read that thousands and thousands of people are in default on these types of loan, but, that's because they're lending to irresponsible people that are high risk.
Charging 9% (compound interest) every 3 days would give you something like 33,000 times your initial investment after a year. If you ask me, that is reflecting a pretty insane risk of non-payment.
So, he didn't pay - what did you expect?
What expect? To pay. Simple. Making some calculations you're right but make loans with BTC it seems to me a healthy way to build a business; you borrow, the other guy invest, both make profits and everybody happy. That's the fantasy world but in real world we all know isn't like that because I know better (now that I'm in this situation) there are people scamming and using the name of BTC to do bullshits.
That's why I said CAREFUL becuase I'm not condemning loans with BTC, on the contrary, I urge you to invest and help other people to fight against banks which loans plan are irrational. I hope BTCjam to protect more the investor with more anti-scamming policies.
Many scammers on BTCJam. Don't trust those "verifications". After all, it's gambling.
There are many people, honest people asking for loans in order to invest in their companies and have a history behind them with full support of the community. Gambling is put like I did in this particular loan, without knowing better the person and without make basic math. I will continue using and now carefully (obviously) paying lots of my attention on the person and the purpose. Bitcoin is about trust, NOT BLIND TRUST. So, I'm saying again like Coinsortium: INVEST WITH CAREFUL[/i]
In my opinion bitcoin p2p loan is a great idea but i think BTCjam has to improve customer protection.
Some questions and a little research goes a long way in saving yourself from being scammed.
never invest on margin.
Many scammers on BTCJam. Don't trust those "verifications". After all, it's gambling.
Loans and Bitcoins go together about as well as oil and water.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
But, if BTC pretends to be an actual currency, how will loans work? Because loans have to exist, otherwise unless you inherit money, you are out of the game if you want to start a business and whatnot..
Bitcoin loans can work just as well as any other loans, but don't lend money to people who you don't trust or if you arent protected legally. Would you loan money to a masked stranger on the street without a contract? No, so don't do it with btc either.
If only things are as simple as the word 'trust' means. There is no such thing as guarantee. I mean you don't know who is behind that screen. There is no black and white or digital agreement. Even then, if that person defaults what are you going to do? law doesn't apply. Conclusion... for that level of risk, i would rather earn nothing but stay safe with the money
Loans and Bitcoins go together about as well as oil and water.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
But, if BTC pretends to be an actual currency, how will loans work? Because loans have to exist, otherwise unless you inherit money, you are out of the game if you want to start a business and whatnot..
Loans should work normally. But in this moment you are not legally well covered in most countries. But most important are you wiling to lose 1 BTC fro lets say 10% interests and that BTC will gain 100% value in this time. On my opinion is just not worth the risk. Yes if you loan to someone that is 100% trustful. Basically is same as with loaning anything else with difference that you must not lose your BTC!!!
Loans and Bitcoins go together about as well as oil and water.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
Never make gambling loans. That is a important thing to learn early as well in Bitcoinland.
But, if BTC pretends to be an actual currency, how will loans work? Because loans have to exist, otherwise unless you inherit money, you are out of the game if you want to start a business and whatnot..
Btcjam is just a scammers paradise. Build up a bit of feedback then just scam once you get a decent amount. I wouldn't suggest lending anyone you didn't know btc at all.
a bitcoin loan in the amount of 0.00101 bitcoins at 9.0% interest every 3 days.
I'm not sure what you expect to be honest.
The interest rate you charge is supposed to reflect the risk and provide a small profit.
A bank may charge me 5% a year for a few thousand ££ loan as it considers me low risk.
A pay day lender may charge someone the equivalent of 2000% per year as they're a much higher risk. I have read that thousands and thousands of people are in default on these types of loan, but, that's because they're lending to irresponsible people that are high risk.
Charging 9% (compound interest) every 3 days would give you something like 33,000 times your initial investment after a year. If you ask me, that is reflecting a pretty insane risk of non-payment.
So, he didn't pay - what did you expect?
Lending something, that the police have no real understanding of, no resources, or any laws around, over the internet to anonymous people isn't the best idea IMO.
And bitcoins that can be mixed to being untraceable.
Lending something, that the police have no real understanding of, no resources, or any laws around, over the internet to anonymous people isn't the best idea IMO.
At least they lost the collateral that they put up for the loan right?
I don't think they use collateral on btcjam, just net-arbs rulings afaik
At least they lost the collateral that they put up for the loan right?
When you loan someone money, you have to anticipate the possibility that they won't pay you back. A default will wipe out all of your profit, so you can't ignore the possibility.
In your specific case, I would be curious why someone would want to go to the trouble of borrowing 40 cents. That would make me suspicious.
Loans on BTCjam are crowd funded. Each person lends a very small amount to make a larger loan. The borrower makes payments to BTCjam (I think) and BTCjam will disburse payments to the lenders' accounts based on how much is owed to them via that loan. In your specific case, I would be curious why someone would want to go to the trouble of borrowing 40 cents. That would make me suspicious.
The amount the OP lent was only his portion, the borrower probably had a much larger loan
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