Careful with BTC loans

[nelruk]

a bitcoin loan in the amount of 0.00101 bitcoins at 9.0% interest every 3 days.

I'm not sure what you expect to be honest.

The interest rate you charge is supposed to reflect the risk and provide a small profit.

A bank may charge me 5% a year for a few thousand ££ loan as it considers me low risk.

A pay day lender may charge someone the equivalent of 2000% per year as they're a much higher risk. I have read that thousands and thousands of people are in default on these types of loan, but, that's because they're lending to irresponsible people that are high risk.

Charging 9% (compound interest) every 3 days would give you something like 33,000 times your initial investment after a year. If you ask me, that is reflecting a pretty insane risk of non-payment.

So, he didn't pay - what did you expect?

What expect? To pay. Simple. Making some calculations you're right but make loans with BTC it seems to me a healthy way to build a business; you borrow, the other guy invest, both make profits and everybody happy. That's the fantasy world but in real world we all know isn't like that because I know better (now that I'm in this situation) there are people scamming and using the name of BTC to do bullshits.

That's why I said CAREFUL becuase I'm not condemning loans with BTC, on the contrary, I urge you to invest and help other people to fight against banks which loans plan are irrational. I hope BTCjam to protect more the investor with  more anti-scamming policies.

Many scammers on BTCJam. Don't trust those "verifications". After all, it's gambling.

There are many people, honest people asking for loans in order to invest in their companies and have a history behind them with full support of the community. Gambling is put like I did in this particular loan, without knowing better the person and without make basic math. I will continue using and now carefully (obviously) paying lots of my attention on the person and the purpose. Bitcoin is about trust, NOT BLIND TRUST. So, I'm saying again like Coinsortium: INVEST WITH CAREFUL[/i]

[chek2fire]

a bitcoin loan in the amount of 0.00101 bitcoins at 9.0% interest every 3 days.

I'm not sure what you expect to be honest.

The interest rate you charge is supposed to reflect the risk and provide a small profit.

A bank may charge me 5% a year for a few thousand ££ loan as it considers me low risk.

A pay day lender may charge someone the equivalent of 2000% per year as they're a much higher risk. I have read that thousands and thousands of people are in default on these types of loan, but, that's because they're lending to irresponsible people that are high risk.

Charging 9% (compound interest) every 3 days would give you something like 33,000 times your initial investment after a year. If you ask me, that is reflecting a pretty insane risk of non-payment.

So, he didn't pay - what did you expect?

What expect? To pay. Simple. Making some calculations you're right but make loans with BTC it seems to me a healthy way to build a business; you borrow, the other guy invest, both make profits and everybody happy. That's the fantasy world but in real world we all know isn't like that because I know better (now that I'm in this situation) there are people scamming and using the name of BTC to do bullshits.

That's why I said CAREFUL becuase I'm not condemning loans with BTC, on the contrary, I urge you to invest and help other people to fight against banks which loans plan are irrational. I hope BTCjam to protect more the investor with  more anti-scamming policies.

Many scammers on BTCJam. Don't trust those "verifications". After all, it's gambling.

There are many people, honest people asking for loans in order to invest in their companies and have a history behind them with full support of the community. Gambling is put like I did in this particular loan, without knowing better the person and without make basic math. I will continue using and now carefully (obviously) paying lots of my attention on the person and the purpose. Bitcoin is about trust, NOT BLIND TRUST. So, I'm saying again like Coinsortium: INVEST WITH CAREFUL[/i]

In mainstream economy world i know many cases that using dollar or euro to do bullshits.. Small example in Greece before 3 days the stock market lost 15% in just 24 hours and many investors lost for one more time their money.
I think in your mind that case of loss is good but when you lost bitcoin in a invest site like BTCjam is evil?

[nelruk]

In mainstream economy world i know many cases that using dollar or euro to do bullshits.. Small example in Greece before 3 days the stock market lost 15% in just 24 hours and many investors lost for one more time their money.
I think in your mind that case of loss is good but when you lost bitcoin in a invest site like BTCjam is evil?

In every situation where you lose money, meaning BTC or USD or € is WRONG. Just to point, lose the BTC trust because of these kind of things for me, I don't care because I'm familiar with the BTC but, how would explain an amateur that these actions happen? You're not promoting very well the currency or the system (in this case P2P).

What the loan pages need to do is provide more security to their investors.

[Elwar]

But, if BTC pretends to be an actual currency, how will loans work? Because loans have to exist, otherwise unless you inherit money, you are out of the game if you want to start a business and whatnot..

Collateral. Most banks give loans with collateral. Don't pay your home loan? Your bank gets the house. Don't pay your car loan? The bank gets the car.

They sometimes give smaller loans to customers with good credit with no collateral such as a personal loan but the worse your credit, the lower the amount.

There are payday loans where you sign a contract to give them your paycheck if you do not pay. They cover everything very well in writing to make sure that if you default they get your check.

The best loans currently for bitcoins are on the exchanges, they pay you interest daily and the site makes sure that the person has enough money to pay you back at all times. If it gets close to going below that amount, everything is paid back.

[thy]

At least they lost the collateral that they put up for the loan right?

After burnside closed down his BTC and LTC stock exchanges back in 2013 there has been no way for a borrower to use collateral for loans on btcjam.