Bitcoin Forum

is BTCJAM.com safe enough to invest there ?
how BTCJAM Ensure that the borrowers will return the borrowed money ?

Not recommended at all...default rates are high.

exactly this, people can get as many fake "references" to make themselves look trustable, but the default rate is definitely over 50%. ive put a few dollars into 2 loans there, both defaulted.

Depends on what do you mean by "safe" because you are not investing into BTCjam but you are "investing" by lending the other people which might default


BTCjam dont ensure that borrowers will return what they owed you because few months after they default, BTCjam will send you arbitration award which contains the identity of the borrower that he/she had submitted to BTCjam. You will then proceed the legal step by your own admission and funds ( or you can choose to let it go )

for more references : https://bitcointalk.org/index.php?topic=499995.0

short: no
long: noooooooooo

the defaulting rate is growing, btcjam was bad from the start, and it's even worse now. you could just throw your coins in a bitcoin-double ponzi. same risk, higher reward :D

I wouldn't suggest a ponzi either way, but you get the point across. btcjam it's a joke, given that the loans taken out are usually small, and lenders usually only invest a small amount, there is not that much incentive for people to pursue a case.

You need to look at what you are investing in, most of the stuff there seems insane to me.

The borrowers take the money and buy miners, or invest in some other scam. You take on all the risk of those miners and the scams (because they won't pay you back when those schemes fail) PLUS the risk that they just rip you off if they make money out of the schemes, for less of the possible reward because they loans are designed for them to still make a profit if the scheme goes according to plan.

I registered (as I do as most sites ;) ) and was surprised of the level of scrutiny they let new costumers go through. I even was rejected on some submitted documents.

It could be a marketing thing, to appear almost as a bank when I borrow fiat, but when you look at the interest rates it's insane. It's hard to imagine anyone takes a loan and invest them to actually be able to pay for these rates.

indeed, some of these loans go for thousands of % apr, and its just another incentive for borrowers to just default and take the money. if anything, the high interest rates just bait people in to lend (donate) people money on the site.

+1
but don't invest at 1 person

I'm going to comment if you will be a user. Everything which is invested online is in risk. This is the first rule. Then, contrarily of what I see here, I have read good things about btcjam (as a site). The problem is that they can't have control over the people who need loans. they have a system to do this but it is insufficient. On the other hand it is impossible to know someone through various online data. And at the end no one can predict how can go a investment. No data for this. Lately they have put in use a tool that help to invest and the return if you use this tool is very high (according to them). So, to conclude, you can try if you want to try.

NO...
lot of scammers up there, even they are 'verified'   >:(

I have only invested in 1 Bad loan. I think a lot of it was Luck. I did my best to try and find out info about people and didn’t go for Crazy APR. There are some who are legit on the site but I have not invested in about 5 months if that tells you anything. I have never taken a loan but I am thinking about trying it but only if it is a descent APR.

If anyone says it is safe they are not telling the truth. There are two types of investors on there. Those who have been scammed and those who will be scammed. You can limit your risk and come out ahead but you will lose on some if you invest long enough.

Depends on who you choose to invest with, but even a proven track record doesn't mean that they will pay back the next loan.


That's your task as an investor, I think. But I do wonder myself if there have been cases where people have sent in fake identification and Bitjam didn't catch it.

This cannot be stressed enough. You have to spread your risk out across many people, with the goal being to profit in the long-run. It's the same thing credit card companies do (they have a high default rate, 20-30% IIRC) but make it up on those that do pay. You should never base your progress on one loan, but rather a LOT. At least 20, if not more.

like your invest at bit-X
you should NOT invest the entire bitcoin What you Have in bit - x
You can invest in some well-known sites such as hashnet And haobtc
ALSO invests in some sites such ponzi scrypt cc ' '
IF One of that dead, you still have bitcoin at  Other Places

Very true! And just saw your avatar... I didn't realize Coinchat came back to life. Who runs it now?

you can join it at here
https://bitcointalk.org/index.php?topic=1137253.msg12084411#msg12084411

Highly Not Recommended.
BTCjam is the biggest playground of scammers. I just wanted to know that how btcjam was working, so i just invested 0.005BTC and loaned few peoples, they just defaulted.


~Rude Boy  :-*

btcjam now it's infested of scammers, just check the "scam-accusation" page here, in the forum.

btcjam was always full of scammers, it's just getting worse now. it's just too easy to scam there, I don't recommend them.

i'm trying them out with 0.05BTC right now... Invested in two loans, 0.025BTC each... I chose 2 loaners with an A-rating, and a track record of payed back loans...

I have to say it feels a lot less safe than loaning out BTC on this forum... At least on this forum, i can make sure i have some form of actual collateral in my hands before i send off my BTC...

You'll probably see me in the scam accusation forum in a couple of months making accusations about btcjam members ;)

According to their stat page, it looks like A-rated borrowers are pretty solid on repayments. Do you actually have experience with loaning on there? I know going with A-rated people is a much lower interest rate, but if it's like it looks, that's a great way to minimize risk and still get return.

That's what i tought to...
Personally, i don't think i would ever run with somebody else's money... But i hope the people i gave a loan to won't run either, since btcjam has their identity, paypal, income and social network verified + they have a proven loan record...

Fingers crossed...

It's sad how many people WILL, though. To me, it's not even a thought. If someone entrusted $100 bil to me, I wouldn't touch any of it unless they gave permission. Money can't buy my integrity, regardless of the amount. I'd live poor before I lived a rich life because of stealing.

But a lot of people are the opposite. Some people on these forums have thrown away their reputation for under a dollar. I just can't even fathom what's going through their minds.

You are pretty much wrong with this. Giving a loan to an A+ rated borrower with a good track record isnt simply a guarantee that they might not default the loan . There has been lot of highly rated borrower that actually defaulted despite that they have submitted their real identity.
As a matter of facts, they got almost nothing to lose by defaulting this because in the end you will be given their identity that has been submitted but you will need to pursue the defaulter with your own cost which could cost more than what you have loaned therefore these scammers easily slip away by defaulting

Thanks for this thread guys, was useful for me!

Was going to invest but after reading the posts.....No Way now. :)

lost 1 bitcoin there some time in the past and I'm only reading horror stories of their non-existent service. btcjam only cares about fees, they literally do nothing to help a lender

Chances are pretty big you're right... I just hope you're not  ;)

Did you only loan to A-rated people or also B->F? This makes a huge difference.

are you aware that there are people selling A+ accounts? you just can't trust anyone on btcjam in my opinion

Ah, I wasn't. This would mean that people are basically selling their identity... that seems like a very risky transaction to me. It's not nearly as anonymous as a BCT account would be.