Topic: This is why Bitcoin P2P lending is dead. - page 6. (Read 4512 times)
I hope by posting my experience here would allow more people to understand the downsides of P2P lending.
P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)
P2P can be harsh, like here, you need REALLY GOOD reputation system close to perfect one to this have any chance to succeed 
Most of us already know bitcoin P2P lending is one of worst idea of all time. Even there's reputation system and strict verification, scammer would find a way to get around with it.
Sometimes they even run even there's real collateral and they already have good reputation as well.
So, i think Bitcoin P2P lending is already dead and no one should use this service anymore.
Sometimes they even run even there's real collateral and they already have good reputation as well.
So, i think Bitcoin P2P lending is already dead and no one should use this service anymore.
I just feel like bitcoin loans are not safe right now, not even here, using escrow and a collateral seems like a safe idea but it's not 100% safe, the escrow could get hacked or just scam himself, things like this have happened before so Im not just making this up, we really need a better system for normal people
They'll never be safe. And the way Bitcoin itself works and the way it's valuation works means there's no way it's ever going to be viable. Even if all parties are honest, if there's a violent price move in either direction then someone's going to get ravaged.
People should stop attempting to apply concepts that do work with fiat but just don't compute with Bitcoin.
Yeah, you are right. The volatility of bitcoin is an issue not only for loans but anything related to bitcoins and I feel that 99.9% of the loans here are really just scammers or people who want to gamble with them, I mean when was the last time someone legitimately needed 100 bitcoins for a legitimate project and got it?
I forgot I had some coins put away in a bitcoin lending site to try P2P lending. This is what I see when I logged in to see my "investments"
Four pages of red glory. I stopped clicking after page 4. Brilliant.
Four pages of red glory. I stopped clicking after page 4. Brilliant.
I "invested" $0.02 in btc in a guy using btcjam.Never got my cents back.
There is no good collateral to cover the p2p loans and to lower the risk of the guy runing away with the
money.
the issue is simple
the cost of recovering a loss far exceeds the loss itself, and scammers know this.
if you cannot physically slap someone with a wet fish. dont hand them your money
if you affordably slap someone with a wet fish. dont hand them your money
the cost of recovering a loss far exceeds the loss itself, and scammers know this.
if you cannot physically slap someone with a wet fish. dont hand them your money
if you affordably slap someone with a wet fish. dont hand them your money
I see any loans funded are below $1, will anyone try to take action against the borrower for such small amount. You have to spend more than what you may get from the borrower if you take legal action. I think that is the reason why most borrowers prefer p2p lending services. only a few would lend higher amount, that too has potential risk since we could get only his personal details (not any collateral) to recover the funding.
A loan is useful if it happens within the same country and backed by contractual laws of that country. The defaulter is liable for civil court actions in that case. But that alone defeats the purpose of decentralization. Lessons learnt: Don't use P2P loaning sites - as many pointed out, Bitcoin is wild wild west.
even within the same country i do not expect this to work. or would you go to court to fight for $100? there are cost involved that are higher than the sum you want to fight for. so most will just let go.
A loan is useful if it happens within the same country and backed by contractual laws of that country. The defaulter is liable for civil court actions in that case. But that alone defeats the purpose of decentralization. Lessons learnt: Don't use P2P loaning sites - as many pointed out, Bitcoin is wild wild west.
I have to agree with you on this one, i opened up an account with BTCJAm and i have to say i think in my first year i am set to make a 30% loss. what a load of crap. People just cant be trusted and if they can see away to steal they usually will. its human nature. a reputation system my work if it is the nearest and dearest of friends and family who are finding out about the bad debt. This is the whole reason why we need trust less systems on the internet.
Same story here. BitLendingClub was okay way back then, my default rate was acceptable. Then suddenly came the wave of "reputable" defaulters, those that are fully verified and with good credit rating, they were supposedly the trusted set of individuals, and for whatever reason, the majority defaulted on their loans. That was the last time I invested in p2p lending.
I just feel like bitcoin loans are not safe right now, not even here, using escrow and a collateral seems like a safe idea but it's not 100% safe, the escrow could get hacked or just scam himself, things like this have happened before so Im not just making this up, we really need a better system for normal people
They'll never be safe. And the way Bitcoin itself works and the way it's valuation works means there's no way it's ever going to be viable. Even if all parties are honest, if there's a violent price move in either direction then someone's going to get ravaged.
People should stop attempting to apply concepts that do work with fiat but just don't compute with Bitcoin.
I just feel like bitcoin loans are not safe right now, not even here, using escrow and a collateral seems like a safe idea but it's not 100% safe, the escrow could get hacked or just scam himself, things like this have happened before so Im not just making this up, we really need a better system for normal people
I can't believe people were mindless enough to enable it to get off the ground in the first place. By its very nature it's going to attract morons, scammers and dreamers. I'd love to see the stats from some of these places. They're almost guaranteed to be dire.
Very true. People who are credit-worthy enough to begin with will borrow in fiat; Bitcoin attracts what is left over, and results in a slew of defaults. I invested a reasonably small portion a while ago (with max. about 2-3%/loan diversification level), but quickly decided it was a lost cause. Rates aren't high enough. If their clientele has default rates akin to pay-day-lenders, then the rates should be just as high. Once the sort of people who are credit-worthy adopt Bitcoin, the business model might be viable.
A better investment in Bitcoin is in casino bankrolls, or to go your own way
I would never use this p2p lending, so many scammers there, if they don't give real collaterals, i can't trust them online. Bitcoin world is a wild west
I can't believe people were mindless enough to enable it to get off the ground in the first place. By its very nature it's going to attract morons, scammers and dreamers. I'd love to see the stats from some of these places. They're almost guaranteed to be dire.
you can hate me for saying it, but giving a stranger money because he promises to give me back more does not sound like a good idea to me. just a name and even an id should not be enough as a security.
P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)
Yeah it is true, all websites that provided systems or facilities such as p2p is not good enough to follow because there must have been some people who utilize it. In cyberspace everyone can wear any mask without being noticed, so better to borrow the btc to those who are already clear
P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)
I forgot I had some coins put away in a bitcoin lending site to try P2P lending. This is what I see when I logged in to see my "investments"
Four pages of red glory. I stopped clicking after page 4. Brilliant.
Four pages of red glory. I stopped clicking after page 4. Brilliant.
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