Bitcoin Forum

Hi guys,

Since some weeks btcjam seems to be on freeze, no new listings at all ! it's like no one is still borrowing on that platform.

Some say btcjam is over, it's closed, but meanwhile i'm receiving payouts from guys who borrowed from me ...

Anyone have an idea ?

Twitter is pretty much dead and they didn't announce anything there. I believe they stopped loan requests because the scam level was so high and they couldn't stop it anymore, I find it as a good decision personally as everyone was scamming using fake accounts and ID's. While googling, It says It's permanently closed (I assume their offices):

https://i.imgur.com/venTCBc.png

BTCJam wasn't doing that great lately, despite their efforts it is not possible to keep bitcoin lending business complexly scam-free.
I am not sure if their closure was caused by regulatory pressure - like in the case of BitLendingClub or BTCJam just couldn't keep up with rising scam level (or maybe something else).
It's quite unfortunate because BTCJam was the most popular bitcoin lending platform in the industry founded back in 2013. I always thought they are doing fine...

I remeber making an account to those bitcoin lending platforms and one of them was btcjam. Yes because of its popularity, I thought that they can handle the scams well but after searching some stuffs . The number one flaw was already noticeable, And that is when personal documents are counted as collateral . Faking them is just so common these days. If you can't verify well if the document is real or not then its better not to . Those documents are useless when the borrower runs with your money .

I had have reservations about this service simply because of the fundamental issue about bitcoin which makes the lending service almost impossible to run in the long-term. Even in the real world where bank loans people money, they do a lot of verification with lots of collateral aside that, people still default not to talk of online where no one knows where the other lives, I don't expect something on the contrary to what has happened to happen.

wow, this makes me feel wow. I always thought BTCjam was doing real good even with their credibility rating system, you could pick different types of loan. Seems that account ID with personal details just couldn't secure the business good nuff :/

Yes i agree, since they couldn't run their business properly it was a better to close intead the damages it could lead to them

I guess it's not the ability to authentify documents, they do great work for authentication (through live person call, dedicated photos to btcjam etc ...), it's more about the ability to track down every one running out with the money, it's not that easy to open cases worldwide ... there's different laws, different systems, and one more thing: bitcoin is forbidden in many countries in the world, so how will them pursue someone through his local laws ?

It might be turning into a scam, so if you still can you should really move your funds out of it as the could possibly run within the next few days. If you can't withdraw your funds anymore, then that would be a problem. If they already froze every way of withdrawing your funds and they only accept payments and deposits then probably, it is a scam site already.

Withdrawal is still possible, and payouts are still running as well ...

Communicated with the administration BTCJAM. They said conduct system upgrades.

Bullshit ... the outage is the for some 1 or 2 months.

Well, they maybe stayed on the community for sometime now but they can't continue their business like that. Scam level are so high that every solution that they try to make is rendered useless by the scammers. With this age of technology, we can easily create fake government documents that we can use as a collateral. I also once used their service but I noticed that there are some flaw to their system making their company vulnerable to scammers.

I ve repeated this tons of times. Until lending services find a way to protect their lenders from default, each and every one of them will fail.

Having a service with default rate of 50-60%, who would ever use something like that?

They stopped issuing loans in early February. Promised modernization in late February. Now March and quiet

No interest on his service, they can't keep life their site. and they can't run the dead service with no interest in there. And finally btcjam is die. Erase the word of btcjam from the world of crypto.

Force worldwide cases.

The problem is that they can't even collect in the US and first world countries.

While we're talking i've just received another payout now: https://ibb.co/kRYr8v

Well if the problem still not be fixed and there are not official announcement from btcjam,
costumers and investors will goes out from there, soon or later btcjam will be like its brother
loansbase was closed out from business lending in bitcoin.  ;D

btcjam is by far the worst lending service I know.

The site is full with scammers and the staffs are not even doing anything to prevent this from happening.

Btcjam is a cesspool for scammers and I would advise anyone considering to invest in their loans not to. I am not really sure about the other Bitcoin related websites however I would think it would be the case generally speaking.

One major problem with Btcjam is that they force you to collect on defaulted loans. If someone borrows $5,000 from 100 people, borrowing $50 from each person, then each person would need to invest additional money to only potentially recover a small amount, likely needing to invest the entire amount they are attempting to collect. A better solution would be for BTCjam to collect on behalf of the borrowers as a whole (or employ a collection agency) which would allow them to realize economies of scale when collecting on delinquent debts and it would obviously be much more worthwhile to collect on a $5,000 loan.

Itgot really bad with lota of defaulters. btcjam was never any help. no way to recover the money

BTCJAM comes alive! HOORAY!

Even if it's still twitching with signs of life, it's an astonishingly shitty idea that deserves to be stabbed until it doesn't move any more.

Lending an irreversible currency to strangers on the internet? Hmm. I think I can see a problem with that in there somewhere.

It's a nobel idea, as done right it becomes an avenue for the unbanked to loan the capital that they need, that's one of the initial purpose of btc anyway right, to provide financial services to the unbanked.

But it was not done right, so many issues here and there, it didn't prosper.

true !
take the example of microcredit banks, they lend people money with zero paperwork, everything is based on reputation and recommendations, so why not it does not succeed through bitcoin ..

This is great news to me.

I've always been in opposition of btcjam because of the easiness to scam - so much to the point their admin blocked me from commenting on loans.   :-\

I don't blame the admin though - they had their hands tied and did the best they could.  The scammers simply had more resources.

Interesting, because BTCJam usually are really active on social media but haven't posted any updates on their site or on twitter since last year April.

I think that it is certainly possible that they have closed due to the high fraud rates, but i don't think that it is the most likely situation right now. They are probably experiencing some unforeseen delay or hack.

Bitlendingclub has closed last year as well.

I mean when people are taking out loans for "trading" or "personal purposes" without ever telling you what they are going to do with that coin in detail, it is probably not a good idea to lend to them... And the irreversibility of bitcoin just makes it worse.

The unbanked will be just as likely to panhandle free money and bugger off as the little shits who were on BTCJAM already.

There must be a way of doing it right but I've no idea how myself.

I have always wanted to know the real reason why they closed. Scammer or regulatory pressure or both?