Bitcoin Forum

https://medium.com/@info_60688/market-analysis-of-p2p-lending-2e40ba419691

What do you think, whether bank lending is better or crypt p2p lending?
Do share your views and comments on this.

Both has it's own advantage and disadvantage. Bank lending is secured since it requires both parties to pass requirements for to protect both parties. On the other hand, p2p lending is more convenient since there's no need for middle man which is the bank, which cuts interst and fees on both parties.

Depends on the interest charges on both systems.
I think the P2P should offer competitive interest rates compare with banks to be more attractive.

Bank's lending vs Crypto P2P Lending?
Which one is better, it is about preferences. I myself prefer to use bank lending service because it is safer imho, since it is protected by the law in my region. Although the process is a bit complicated compared to cypto p2p lending. On other side, Crypto P2P lending is easier but we should be careful to choose the lenders or the services.

I'm not sure P2P is a magical bullet. Banks have been in business a long time, and while they obviously can make mistakes they usual have rather strong protection against fraud and have large departments of staff that are dedicated to risk management. What you'll tend to find is people that have a hard time borrowing money from a bank (maybe because they have not paid it back in the past) will try to borrow via P2P lending services. Ultimately these high risk borrowers will default on the debt to private lenders. China is having a bit of a P2P lending crisis at the moment

In my opinion, the P2P lending system is a safe haven for the scammers to grab their profits and run away without getting traced which is why it is not as reliable as bank lending process at present. For example:

https://coincrunch.in/2018/10/23/two-btc-scam-localbitcoins/

Bank lending is always the better option in this case.

I haven't really understood how crypto lending works, but I think I would prefer lending from the bank than lending or borrowing crypto because the crypto market is very volatile and we don't know what could happen in the next few months or weeks, or even days to come. Imagine lending a person $1000 worth of crypto and when it was time to pay back, the crypto was worth $500, you see that you have lost a lot of money instead of gaining money which is a very bad thing, the only way to carry out lending in crypto is via USDT.

Bank lending is the whole crux behind the fiat currency what we use in our daily routines too is nothing but a loan taken from the federal bank. While p2p is actually giving out your own real money to someone else in return of a collateral. Now if we talk about safety then that is too low in case of p2p lending as he has a choice not to pay it and nothing can be done against him. Remember if there is some intermediary exchange between cryptocurrency lending that locks withdrawal then it is actually not a P2P lending.

Yeah, that's right. I think borrower who has actually a bad credit score can easily apply for P2P lending.
I think investor on P2P lending should adopt a conservative approach on selecting borrower, just like the banks.

That's the main difference among the two and surely most of us would definitely go to the thing which is safer but there are really people would tend to risk out to crypto since we know the interest would be entirely higher compared to traditional bank lending and its much more easier but somehow risky because we wont know if the one are legitimate or just totally fraud service.

If I were a lender and chose to p2p lending, then there's a chance that I wouldn't get my profit in interest if the person I have lent my money with knows the law. Of course, if you are an undocumented lender, the person who asked for your lend would make it your vulnerability.
They must pay the exact amount of money you lend to them but they can actually choose not to pay the interest and would make you end up holding the bars (being imprisoned) if you force them to pay the interest as well.
If you really want to be a p2p lender, then, of course, you must fix your document first, obey the law and find the people who know what you are doing and do not take advantage the people around you.

We're into crypto because we don't like the banks to continue conquering the financial systems. And if you're looking at the forum with the specific section of Lending (https://bitcointalk.org/index.php?board=65.0) there's a division of success and failed lends. As for the security, many will choose and prefer to go to the bank's lending side because it's safer for them. The banks were established and you can follow up anything to them as soon as there's fault within your transaction.

Crypto lending's sole use is to steal money from the naive, greedy or stupid who open their wallet to any prick on the internet and even if you find someone who actually wants to pay you back the chances are a price change will fuck them or you and it's goodbye money.

It's concept that was born dead and it's getting more putrid by the day.

The very thing about P2P lending in this industry is that you can result in either a big time loss or a big time gain. We all know how volatile this market is. Fixing the interest is a thing but the principal amount won't change. What I mean by that is if you lend 0.01btc @ 5200USD you'll still ger 0.01 btc @ 4800 if he pays at that time.

P2P lending is a great back alley way of shorting Bitcoin if my understanding of it is accurate. Normally with a bank loan, a bank can either secure the loan with someone's house or their car, or provide an unsecure loan that will normally come with a much higher APR. That and banks have government to assist in getting their money back. I think that's the biggest problem with P2P lending.

I would like to see P2P lending lead to actually fixing peoples lives where it mattered most. The ideas behind moving away from a centralized currency are all the reasons I would hope that P2P would be successful. But if there's nothing to tie a borrower in place to ensure they pay back what they owe, I don't have much faith in P2P at this time.

indeed it is a risk, if we intend to take it. I think if the price exceeds $ 5200, it is certainly an advantage for us. for those who dare to take risks, the loan will be the road taken to take advantage of the opportunity to reach the target

The project that you are offering has already been running several and that has already been mentioned in your article, if you want to get the attention of crypto lovers, you must have the uniqueness from the existing project.
Crypto lending will greatly help lenders and borrowers who can transact on one platform and be brought together from all over the world, different from banks lending only from the same country except for large loans and that is limited to investors or big businessmen only.

It's a clear advertising to your p2p lending platform. Anyway, please answer one simple question!

Lets assume, your company is located in Singapore and a Mexican person takes out loan without collateral and later he refused to pay you.

What mechanism you will have in place to recover that amount?

I am asking these because recovery is a big challenge in crypto p2p lending!

I don't think that there is necessarily a clear winner in either case. Both have their upsides and downsides.

Of course with P2P, you might have cheaper access to credit if you are in countries that have a volatile currency and high interest rates, and also due to the fact that the middleman is cut out. But, there are still significant problems in terms of verifying the legitimacy of someone who comes from the other side of the globe if you're doing the loan on no collateral, or dealing with the risk of the platform pulling an exit scam if we're talking about a collateralised loan. If we're dealing through a smart contract, then the collateral can only be tokens supported by that platform, and not anything outside, which kind of limits the possibilities of a lot of loans that may not have a token as collateral per se.

From a borrower's standpoint, I think that they'll obviously go with the cheapest and most accessible option to them, which may actually not be P2P in countries where credit is more readily available and/or the borrower has a good credit rating. The whole concept is interesting though, and I don't think that it's something people should dismiss.

P2P lending is much better but I dont know how will you operate such lending flatporm. Traditional bank lending takes a lot time and you need to pass a lot of documents before you can be approve (this is based on experience). P2P may be riskier for both parties since this will be just a verbal agreement or you may want to ask some collateral first before you can lend someone.

For now, collateral is must for a borrower. and we give max 75% of collateral value in loan,because we have to consider the price volatility of the crypto. If the borrowed coin's price increases to collateral value, at that moment, the lender can request for collateral withdrawal.

And this post is not for promotion sake. It's to promote the concept of p2p lending only.

Oh, you will even give more than that based on what I know. Since the market is highly volatile, if your plans of the market going up doesn't work, then you're in a very big loss cause you will be paying back without any profit and you're also paying all those money plus interest. If you ask me, I'd say bank is better than this one. And by the way there are lots of new platforms around these days that can even lend you money without asking for any collateral at all. But borrowing money is not something I recommend to anyone.

If you ask me I will say that there is no difference between the two of them. Based on what I know about the crypt I lending you will have to deposit your cryptocurrency assets to get some cash from the borrowers and pay back later with some interests and I don't really fancy. People just do it because they don't want to sell their assets and that's the only reason I know they do it and to me, it's not really worth it. What if you borrow and pay plus all those interests and the assets you were trying to save still didn't increase in price?

Exactly this. P2P lending and crypto lending is mostly subprime, which is why the interest rates are much higher and the defaults are much higher too.