Bitcoin Forum

If the person taking your loan defaults, what happens? you simply lose your money? then whats the point? you are already taking a risk by having your coins outside your personal wallet, the least they could do is recover your loss.

What are the chances an A+ verified person will default on you? and what are the consequences? I don't understand this loaning business since if they default and nothing happens to them and you simply lose your money, it's gambling and tons of scammers will be all over the place on the daily. What stops a person from scaming you if they can ask for a loan, get the money, default and run without nothing happening? that sounds like free money, doesnt make sense to me.

They ask for tons of informations like password, adress , ID, Paypal , bank accounts and stuff but they don't do nothing really .
If you get scammed, you get scammed and there isn't anything youcould do , they may give you the informations of the users but dont think there is much if you are both from two different countries .

http://help.btcjam.com/customer/portal/articles/1987707-arbitration

I lost some coins to scammers and stay away from this site . That was some time ago, maybe they improved the verification, but probably the scammers got better too. I don't know I just don't trust  anymore.

I just started with BTCJam and I've made four loans but only to people that have a history of previous loans.  One guy made a payment 3 weeks early which was a surprise.

I would suggest making about 10 small loans to lower your risk.

Also, re-invest your interest payments to further lower your risk.

I would think withdrawing some of your interest payments is a good way to lower your risk, by starting to recover your initial investment.

Seems like it's more of a hassle to the lender if ever the borrower defaults his/her loan. Not a good approach to such cases imo, if the borrower is from another country, you can't do anything about it, literally.


Even the A+ verified borrower fucks up sometimes, though the cases are very rare. Reviewing the profile of the borrower thoroughly and checking his/her history would give you an idea whether to give that user a loan or not. I beg to disagree but if you are a newbie on such things, trying to give a loan of a small amount and limiting your loan to a single transaction would do to familiarize yourself on the system. If you think you can handle it, then next time you can try and be bold: lend different amounts to different verified and 'trusted' users simultaneously. Just an advice though.

If the person taking your loan defaults you lose the money. Don't have no importance all the data you see about someone which ask a loan. They are only to convince you that that person is credible. Maybe now is improved as a service but I don't use this service. I don't like it.

Even more if it's for a small amount...

Does anyone knows the default percentage on BTCJam?

So what stops people from creating new profiles using their friends credentials, and their friend of friends credentials... and so on and asking for money with A+ verified profiles and defaulting every single time to people that live overseas? free BTC anyone? what a joke.

So is there a decent way to put your Bitcoins to use? im bored of simply sitting on mine, I want to make more.

Return is up to 10% for about 5 out of 10 loans, the rest was 5, 6 and down to 1.65%. The first ~20 loans I saw are for a year or a bit shorter, but you can find things for 30 days as well.

@Arbitration: So this gives you help to legally pursue a party not willing to pay? I imagine scammers simply use fake details, it isn't that hard.

Suggestion: Try autoinvest, last time I looked it spreads out your investment among a lot of loans, so your chances of getting ripped of are (assuming 51% of lenders is legit) smaller.

At first you were screwed, this was AMAZING if you were smart as anyone could get a loan.

Now people need to jump through hoops so the people asking for a loan is down like 90%.... sure the odds are a lot higher you can take the person to court now but you can't get blood out of a stone no matter how many lawyers you throw at it and how many courts you bring it too.

I was DDDDDDDOMINATING on that site until it changed.. bah.

Had 1 defalter on my first loan because I was greedy, I made it all back and then some due to smart loans but now.. it's ghost town.

Last time I checked, btcJam is strict on the details of the borrowers there, so I think faking details would be hard unless you are good at it. On the part of arbitration, even if you have the power to legally pursue any party who defaults a loan, if it's a small sum and the defaulter is from another country, it will basically be useless.

I have only lent some coins before the whole arbitration thing was in place and even though the borrower had A+ rating, he got away pretty easy.
It was a small sum and arbitration didn't affect it as it didn't go back that far in retrospect. I haven't really dared to invest since then. And now, I don't have a guarantee on my money just on the fact that I will be given the borrower's information. Well, little thin.

Faking details is never an issue there because I have got an arbitration award of someone that is actually a fake identity which I dont care because it is a small amount but the main point is there are currently a lot of potential scammer there. Pretty much the one that got profit there would be btcjam and the scammer.


Which is the sad truth , even A+ ratings turn into a scammer once he got himself a lot of loan. Kinda a new scam in btcjam, build up yourself with alot of legit loans and ask for a chunk of it in the future just to grab it all away


Unless you put on a large amount then pursuing the defaulter is simply a workload assuming he is not in the same country with you. The cost to bring a legal action to the defaulter might cause you a whole lot amount then the amount that you lend , simply not worth it

btcjam is just one way to the most steal your money gettin an A or  B or C reputations means anyone of them can steal you without pay,there is currently margin trades that allow you to gain interest daily ,works like loans but there is colateral to protect you and  money cant be taken out from the exchange before pays lol,search poloniex they were pioner on those feature

I wouldn't recommend you loaning to anyone on the internet through any means without a valid collateral and even if you knew the details of someone who took the loans from you and didn't return, it's not much you can do about it if the person is living in another country and filing a report internationally and trying to get him to return the amount will cost more than the actual loan itself.

Although, there is a case which I read about, someone who took a BTCjam loan and defaulted and he was found and sued by the arbitration agencies and he was found guilty.

http://www.coindesk.com/judge-rules-in-peer-to-peer-bitcoin-lending-lawsuit/

if you loss at, you loss. Yes! I lost about ~0.005. He's a B- user and also he got +1 rep and already he repaid his loan. So i just invested on him. Unfortunately, he defaulted  >:( can't recover.
Thank god i just invested/loaned ~0.005 only.

~Rude Boy :-*

I highly suggest everyone staying away from BTCJam.  It is full of scammers and a lot who will default.  You look at these huge rates and think wow... I will make a ton off this loan!  But in reality if someone cannot buy BTC at regular price chances of them keeping up with a big interest loan is slim.

Then BTCJam leaves it up to you to collect.  They need to have a legal team to help defaults and getting money.  They need to add this but they want nothing to do with defaults.

BTCJam only cares about fee collection. they give literally 0 fucks what happens after they got money. I burned like 1 btc back in the days when it was NOT so bad like it is today. don't waste money/time on this

the bad thing is the blockhain had promoted it for a while soo some people believe on it,there isnt a 100% that you will earn anything for a loan without colateral avoid loose money invest with security

My balance is in - (minus)bitcoin how? I don't know, I emailed to btcjam support they ask my user name to fix it but they don't do anything my balance is still in -(minus).  >:(

I think it's a compounding problem.   The more people see that defaulting and how hard it is for someone to recover it the more future defaults happen.  It spreads like a plague.

And with people loaning to people all over the world it's hard legally.  If loaning I would stick to same country so you can get a lawyer at decent rate, add international and most I'm guessing cost more then what you would recover.  But even in same country people seem to default, they don't seem to care they will sell their online reputation for X btc. 

It's sad but I think it's going to take BTCJam to take a active role to fix it.  They need to have a new department with proper lawyers to help on defaults.  Right now they just give you info and say hope it goes well!

all they need to alow loans is ask for colateral ,otherwise no lawyer will recover all money taked by others.... it will take a lot time and people invest on short time as medium,they dont wanna loose money,as i said before exchanges doing these already,loaning with colateral,and not allowing to cashout before pay the loan,otherwise some users would kill the reputation of any exchange in short time.One of them os poloniex,sure they offer 0.04% daily instead of 40% montly btcjam users offer but their is safe btcjam isnt currently safe to no one,avoid it before loose your money.