New age of BTC lending?

[marcotheminer]

Could it be that with the increased price (1mBTC essentially being 100$!), old school lenders or even those from the forum with a small stash of coins could make nice returns in P2P lending..?
Sure, the risk is still there but considering reputations of some borrowers, 30% interest every few months  seems a low/acceptable rate. And that’s a nice income if you loan out a volume of say 100mBTC (0.1BTC) maybe per quarter. Making 10k a year with P2P lending if there’s demand which there is, but verifications probably stall everyone without prior rep or some form of guarantee of repayment.

Perhaps one day I open my lending thread again

Edit: Lenders do take on risk of losing satoshi numbers though (that is if, with interest rate fixed in USD, BTC appreciates >)

[BenCodie]

I think you're over looking the key factor of the borrower.

Borrowers sometimes are desperate and may take on loans in BTC while overlooking or not understanding the potential of BTC's growth. Should a borrower take a BTC loan, liquidate it for their purposes, and come back in 1 month with over 100% of the expected repayment due, this could cause financial hardship for them and may effect lenders who are lending BTC in the long term.

Yes, it seems profitable for the lender, however, it would be responsible of the lender to warn the borrower of the risk involved with the loan, in the event BTC continues to grow. Otherwise, if too many borrowers are caught off guard, it could ultimately turn into a huge mess for both lenders and borrowers.

Stay safe.

[JeromeTash]

People are relying more on stablecoins when borrowing or lending, unlike back in the day when it was mostly loans through Bitcoins.
Today and uptrend in the market does not favor the lender since whatever he lent gets locked up in stablecoins instead of benefiting from the Bitcoin price appreciation. The reverse happens when the market is on a downtrend.
As for old school lenders (those lending strictly BTC). An uptrend favors them but can also increase the risk of someone defaulting the loan, especially if there was no collateral involved. I remember some people who defaulted loans because the price of the borrowed BTC appreciated by over 100%