Bitcoin Forum

Hey Everyone.

Its been a while since I have been online. My account was hijacked and unfortunately have no method of recovering.

I was wondering what everyone's opinion is on BTCJam?

Have you funded users and been defaulted on? If yes, have you seen any activity on getting funds back?

Been wanting to fund users but not sure on scams.

i started with 2 btc and made several investments to fund borrowers.   id say several of them, much too high a proportion imho, have defaulted and were most likely frauds.  the due-diligence and ratings are easily faked.

i have no confidence in the business model of lending in btc.  most of those guys are either doing tiny amounts, to build reputations (so they can borrow more) or are doing larger amounts, with seriously flawed business plans to be able to repay.  the risks are so high that the interests rates are through the roof, and, who could possibly afford to repay loans with interest rates in the 50-500% range !

most borrowers seem to be borrowing in btc and spending in fiat.  cant possibly work, with such high currency risk.

i really wanted it to work.  i think the site itself isnt bad.  but the business model is deeply flawed.

Thanks for the reply.

I've taken a few loans out for building rep to partially see the flaws in personal(from the borrower side).

The rates they suggest definitely are WAYYYYY to high for the average joe to go in and request a loan.

I do agree that the system is flawed with fraud. Fortunately it seems to be getting better as the validation with ID is requiring users to have photo ID held up next to their face. Granted this doesn't solve the fraud issue, it just pushes the users to find new ways to cheat the system.

I've seen on their fact section, after 90 days, they release all the info they have on the fraud user to the lenders. Have you ever gone through this process?

sorry to hear that, but a search in the forum will reveal a lot of horror stories about BTCJam.

admit-tingly, I learn my lessons the hardway when I started with bitcoin.

Hey there,

Would you suggest the lending is bad enough to remove them from our service listings? Haven't had experience, but do have them listed and definitely not in favor of promoting a service in which people are losing money.

though they where already out of business

I invested just under 2btc, currently sitting at 0.003 loss due to scammers :(

Aren't they getting the money from borrowers with help of law enforcment?

Has your loss been past 90 days? It says after 90 days the arbitration process starts. Have you(or anyone reading this) gone through this process yet?

THanks!

if you can true person BTC Jam is a good invest place
but msut be carefully
a lot of scammer in BTC Jam
firstly they are paying small amount, but suddenly they lost  >:(

I haven't had any experience with them but I wouldn't give out any money to anyone without any valid collateral. Which is exactly what you should do OP, if you want to lend people to make money, don't trust random strangers you meet on the internet.