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Title: i want to start lending ,what type of virtual guarantees should i ask for... Post by: spy100 on July 12, 2014, 11:47:04 PM Hi All
i want to start lending ,what type of virtual guarantees should i ask from people that want to borrow money from me ? what are safe virtual assets that i can take from scammers if they refuse to pay the loan? Title: Re: i want to start lending ,what type of virtual guarantees should i ask for... Post by: rarkenin on July 12, 2014, 11:51:16 PM Well, you always want to have some sort of collateral, in the form of at least 1.1x the loan value in some altcoin that is traded and stable. Something that you can, if the borrower disappears or fails to pay, can convert to bitcoin to recoup your losses. Something like Litecoin or peercoin is best, don't go for random crapcoins that popped up recently.
Documentation isn't going to help you. Say they run off. How would smearing them guarantee you getting your money back? Same with paypal/anything reversible. They will likely try to reverse it in the end. Title: Re: i want to start lending ,what type of virtual guarantees should i ask for... Post by: spy100 on July 13, 2014, 12:00:48 AM Well, you always want to have some sort of collateral, in the form of at least 1.1x the loan value in some altcoin that is traded and stable. Something that you can, if the borrower disappears or fails to pay, can convert to bitcoin to recoup your losses. Something like Litecoin or peercoin is best, don't go for random crapcoins that popped up recently. Documentation isn't going to help you. Say they run off. How would smearing them guarantee you getting your money back? Same with paypal/anything reversible. They will likely try to reverse it in the end. wow so risky to give them loans like that...the higher the risk the higher the profit for me as a lender should be (in theory) The problem with altcoins is that in reality you are not lending them money you are just doing a exchange service for them. i would need from them some sort of audio,video,ebook,script file that generates money and i give them only half of what it is worth .Anybody tried it like that ? Title: Re: i want to start lending ,what type of virtual guarantees should i ask for... Post by: rarkenin on July 13, 2014, 01:09:34 AM Well, you always want to have some sort of collateral, in the form of at least 1.1x the loan value in some altcoin that is traded and stable. Something that you can, if the borrower disappears or fails to pay, can convert to bitcoin to recoup your losses. Something like Litecoin or peercoin is best, don't go for random crapcoins that popped up recently. Documentation isn't going to help you. Say they run off. How would smearing them guarantee you getting your money back? Same with paypal/anything reversible. They will likely try to reverse it in the end. wow so risky to give them loans like that...the higher the risk the higher the profit for me as a lender should be (in theory) The problem with altcoins is that in reality you are not lending them money you are just doing a exchange service for them. i would need from them some sort of audio,video,ebook,script file that generates money and i give them only half of what it is worth .Anybody tried it like that ? No, that's very risky. The borrower is too much in control. As for altcoins, it's a common thing here. You're not really exchanging them, they don't want them exchanged. You're also not playing into market variance as much. If they do not pay up, then it's a forcible exchange in your favor, however. Title: Re: i want to start lending ,what type of virtual guarantees should i ask for... Post by: BurtW on July 13, 2014, 01:18:03 AM The only way lending works in Bitcoinland is to run a virtual "pawn shop".
You must get something that you can turn into cash or BTC as collateral. The something you get must be worth a lot more than the loan. You must be willing to turn a lot of these somethings into cash or BTC when, not if, the loans go bad (a hassle). If you do that you will be OK. Otherwise you will lose money. Title: Re: i want to start lending ,what type of virtual guarantees should i ask for... Post by: RCHumphrey on July 13, 2014, 12:53:19 PM The way I have loaned so far with varying success is to consider their account value as a form of collateral... considering accounts that are established have a value determined by the market as roughly 0.05 for member, 0.15 for full member, 0.4 senior and 0.7 hero, if the value of the loan is significantly below that then it would appear safe, since accounts which are negatively trusted are worthless. Its a bit risky but just another type of virtual guarantee for you to consider.
Also since your account is new, you should not be holding any form of collateral imo, that should be kept with a neutral escrow. |