Topic: Would You Ever Take Out a Loan in Bitcoin? - page 5. (Read 7213 times)

it is hard to trust anybody anymore these days. i would never give anybody any loan without any collateral no matter how much good history they have got. especially on BTCjam, the trust service and any kind of verification that they have got, is not a 100% grantee that you dont lose money to a scammer.
with collateral at least you know that your money is safe.

i'm not aware of any collateral given by users that use btcjam for example, and because of this there are many case of default on loan there, from any member, rank does not even matter there, it's a bit sad, seeing how that is the site with the most activity for this kind of stuff


well you can set the interest you want, based on the amount of time for which you're requesting the loan

BTCJam aren't securing your loans by a bit. Many members on the site has been creating account using fake ID and their support is non existent. If you are looking for one, look for one that is trusted and can allow the borrower to put something in escrow. ID verifications isn't worth anything.

No, I got my bitcoin on the side! I don't need the bitcoin loan! I know it charges a lot of money!

taken out tons of loans, funded lots of loans. If you're gonna do it , do it through btc-jam or such a service as that with verification. Too many scammers around these days, always need some sort of escrow.

Nope. Only loan I gave was a few minutes to a #bitcoin-otc chanop for testing and return.

You guys don't have any experience to take out a loan and act as experts here! I will express some of my views from the point of view of a lender.

1. Bitcoin loan is easy and quick! Avoid the hassle of a lot paperworks and signature required by the banks and many days' waiting!

2. The required collateral either go to the lenders or the escrow based on the two parties' agreement, but whoever is holding collateral, he is reputatioal, trusted by both parties, has done a lot of smooth trades and none of which has any issues. Besides that, I have never seen this kind of cases happened in this forum since I involved in this forum since 2013, except the cases that borrowers run away with the laon and default the loan!

3. Yes, I admit some lenders charge a high fee! Yes, it is true. But lenders often issue high risk loan without collateral for the high interest earning! Still there are some lenders in this forum who are offering low or no interest loan! If you bother with the interest rate, you can contact them, like Muhammed Zakir, Monbux!

4.It does have the exchange rates risk for the both parties due to the high volatility! The lenders still have to face the possibility of falling bitcoin price! So I recommend the short loan for emergency not for high risk gambling or trading! But some lenders are offering the bitcoin loan based on the value of dollar if you bother with it.

     - Lihua -

I believe it too. It is useless to go for loan on bitcoins as i don't think its an safe thing to do. There are more chances of loosing your hard earn coins to the hands of scammers who keeping watch on your bitcoins and you cannot trust anyone over the internet so it is better to stay away from it.

Exactly it is better to go for trading rather then going for a loan from bitcoins as in trading risk is involve but you are the only person responsible for that either its a profit or a loss you are solely responsible you cannot blame others and I simply recommend not to opt a loan from bitcoin.

This is why a lot of lenders require some kind of collateral so that if the loaner runs away with the coins, the collateral can be sold to make up for the loss and usually interest.

Exactly it sounds little bit risky and wierd he can easily run away with your hard earned bitcoins and it is better to stay away from loan in bitcoins. If you need money there are many ways to get a loan and the best way is to contact the bank as it is the safest way to do. But loan on bitcoin..simply not possible.

I took out a 350 BTC loan to pre-order mining equipment from ButterflyLabs.  This was when the price was about $50.  That $15,000 loan quickly turned into a $350,000 debt which I felt compelled to repay.  After a couple years, I have repaid nearly all of the lenders and am on schedule to repay the remaining lenders this month.  That huge increase in debt nearly crushed my organization, but I believe it shows a great deal of strength and character that I stuck around to operate NastyMining in order to repay this massive debt.  I look forward to resuming growth and operating with a debt free future.

My advice is to never receive a loan denominated in BTC.  It is simply too volatile and either the borrower or the lender is going to get screwed.  Always hedge your bets.

Thank you for your comment What if the loan was denominated in dollars so that fluctuations in the bitcoin price would become irrelevant?

Good point. However all reputable bitcoin p2p lending companies would urge you to diversify as much as possible. Therefore, you can make many, smaller loans, allowing you to make up any shortfall through the interest rates accumulated through your diversifyed loans.

Actually, a wide variety of measures are taken by companies like btcjam and bitbond to ensure a reliable credit rating. Furthermore, all reputable p2p bitcoin sites urge lenders to diversify their portfolio as much as possible. Thus, even if one borrower fails to repay his loan, the repayment of other loans to the same lender more than make up for the initial shortfall! 

Yeah.. It is better to stay away from loan in bitcoin as it sounds risky. Trading is better option as compared to taking a loan as trading can earn you profit if you sell at a right time then you can gain something really great in quick time but when it comes to loan in bitcoin you have a fear of loosing your money.

no.. i try not to do the loan thing. .. don't front.. if you do and you dont get paid back then you lose both your money and your customer. thats your fault.

I Agree this is very risky you cannot afford to trust anyone and yes you cannot afford to neglect the fact of scammer over the internet the situation would be you will find loosing all your hard earned coins at the end of the day and it will never prove to be profitable.

It looks you don't know and lived in the bubble era when lots of loans in btcjam were unpaid

Hey,

I have actually never thought about it to be honest but now you have said it, my thought experiment says yes I would get a bitcoin loan if I ever had the situation where I needed one. From what I have seen the loans for bitcoin are quite a lot less % to pay back than you everyday high percentage fiat rip off loans.