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Oooookay so i've totally missed the point.
Why in the heck do you need P2P lending if there is a site that manages rep within those p2p trades.
Sorry but I've got nothing but redflags being tossed all around in my brain.
Why in the heck do you need P2P lending if there is a site that manages rep within those p2p trades.
Sorry but I've got nothing but redflags being tossed all around in my brain.
Risk distribution.
Say you (and 49 other people) have 200 BTC to lend.
Say 50 people want to borrow on average 200 BTC.
You could lend 200 BTC to one person (either you profit or lose everything) or you could lend 20 BTC to 10 people (if one or two defaults you can still come out ahead).
To the OP:
The reason lendingclub can control defaults is:
a) identitiy verification
b) credit report verification
c) reporting to credit agencies
d) selling bad due to collection agencies
none of the infrastructure exists for Bitcoin.
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Still... I'm just curious why I havent found anything on this yet as the connection between what is possible with BTC and also with P2P loans seems a bit obvious to me
....
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However I think even LendingClub, prosper.com, and similar sites provide a collections service to keep the default rate low, and that would quite limit the ability to be anonymous.
You answered your own question.
Respect for helping me understand BitCoin better
