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Title: Bitcoin business idea Post by: Boat4Sale on May 20, 2016, 12:53:10 AM I don't know if anyone has done this yet but set up a bitcoin business/website that offers interest on bitcoin savings deposits and then offers loans for a high rate of interest? Like a bank?
Good idea or no? Title: Re: Bitcoin business idea Post by: Skylake on May 20, 2016, 01:01:56 AM i think platfrom like btcjam is better than your idea.
Title: Re: Bitcoin business idea Post by: Vod on May 20, 2016, 01:11:05 AM I don't know if anyone has done this yet but set up a bitcoin business/website that offers interest on bitcoin savings deposits and then offers loans for a high rate of interest? Like a bank? Good idea or no? People would take out loans and not pay them back. What would you do? Title: Re: Bitcoin business idea Post by: Boat4Sale on May 20, 2016, 01:20:49 AM I don't know if anyone has done this yet but set up a bitcoin business/website that offers interest on bitcoin savings deposits and then offers loans for a high rate of interest? Like a bank? Good idea or no? People would take out loans and not pay them back. What would you do? Only pay out loans in fiat, accept savings/investments/repayments in btc Title: Re: Bitcoin business idea Post by: Quickseller on May 20, 2016, 01:23:20 AM If you are looking to "invest" your bitcoin then your best bet is most likely going to be exchanges like bitfinex, poloinex and possibly okcoin (which apparently has some kind of insurance-like fund to protect lenders).
You will essentially be making peer-to-peer margin loans and the exchanges' risk management system will (attempt to) protect you against defaults as the exchange will force-liquidate the borrower's positions if markets turn against them too much. You will need to trust the exchange with your coins and you need to trust that market volatility will not be too great because if it is too high then the people borrowing your coins may not be able to repay and if this happens to enough borrowers, the exchange may become insolvent. Title: Re: Bitcoin business idea Post by: Boat4Sale on May 20, 2016, 01:28:40 AM If you are looking to "invest" your bitcoin then your best bet is most likely going to be exchanges like bitfinex, poloinex and possibly okcoin (which apparently has some kind of insurance-like fund to protect lenders). You will essentially be making peer-to-peer margin loans and the exchanges' risk management system will (attempt to) protect you against defaults as the exchange will force-liquidate the borrower's positions if markets turn against them too much. You will need to trust the exchange with your coins and you need to trust that market volatility will not be too great because if it is too high then the people borrowing your coins may not be able to repay and if this happens to enough borrowers, the exchange may become insolvent. Bing, another business idea, bitcoin insurance ??? Title: Re: Bitcoin business idea Post by: Quickseller on May 20, 2016, 01:46:22 AM If you are looking to "invest" your bitcoin then your best bet is most likely going to be exchanges like bitfinex, poloinex and possibly okcoin (which apparently has some kind of insurance-like fund to protect lenders). You will essentially be making peer-to-peer margin loans and the exchanges' risk management system will (attempt to) protect you against defaults as the exchange will force-liquidate the borrower's positions if markets turn against them too much. You will need to trust the exchange with your coins and you need to trust that market volatility will not be too great because if it is too high then the people borrowing your coins may not be able to repay and if this happens to enough borrowers, the exchange may become insolvent. Bing, another business idea, bitcoin insurance ??? If the lender chooses to buy "insurance" then a certain percentage of the interest he is due will be paid into an insurance fund that will cover losses up to the amount in the insurance fund in the event that the borrower they lend to ends up having negative equity in their margin account and is unable to repay what they borrow. I understand that okcoin's insurance fund is currently somewhere in the area of ~900BTC, however the problem is that in periods of extreme volatility, if a lot of accounts receive margin calls, then there may be a cascade effect that causes many people to sell (or buy, depending on the direction of the market), which may cause ever increasingly large losses for margin traders. Title: Re: Bitcoin business idea Post by: Vod on May 22, 2016, 11:22:22 AM If you are looking to "invest" your bitcoin then your best bet is most likely going to be exchanges like bitfinex, poloinex and possibly okcoin (which apparently has some kind of insurance-like fund to protect lenders). You will essentially be making peer-to-peer margin loans and the exchanges' risk management system will (attempt to) protect you against defaults as the exchange will force-liquidate the borrower's positions if markets turn against them too much. You will need to trust the exchange with your coins and you need to trust that market volatility will not be too great because if it is too high then the people borrowing your coins may not be able to repay and if this happens to enough borrowers, the exchange may become insolvent. Bing, another business idea, bitcoin insurance ??? Interesting that you chose Quickseller's quote to post about bitcoin insurance... What would stop one person from pulling an insurance scam under multiple IDs? |