Hey guys, thanks for all the responses.....I will try to address all of the questions/replies in this post.
What are my other BTC obligations?
I currently have an 11,000 BTC loan with a long time forum member who wishes to remain anonymous. The balance on that loan has been paid down to 9,000 BTC and the next payment is not due until February. I do, however, plan on aggressively paying it off early as I have been thus far. There is a thread dealing with that loan in the lending sub-forum, and I post periodic updates for those interested parties.
Wouldn't it make more sense to do the loan on a dollar basis?
In a perfect world? Absolutely. The issue I see is most holders of substantial BTC do not wish to lend in dollars. They think in terms of BTC and want to loan in terms of BTC. In addition, many of them believe the price of BTC will only go higher (debatable of course), thus do not want to lock into a dollar loan and lose out on appreciation. I think it is just a simpler solution to do all calculations in BTC, in conjunction with the aforementioned price collar.
I think potential lenders will also want to know more about how you will spend or invest their money to achieve that 20+% APR. Without that knowledge, they cant assess the risk and it would be difficult to distinguish your offer from a slow ponzi.
I wholeheartedly agree. There are 2 opportunities with available to me for which I will use the funds......one major and one minor. The major opportunity is simply purchasing more equity in my firm. I currently own a sizable minority interest, but more has been made available to me. The business is 46 years old, and has never earned less than 20% ROE. Many years we are closer to 30%. It makes a lot of sense for me to borrow at 10% and earn at 30%. The second, much smaller opportunity is engaging in small currency exchange transactions. I have several individuals who transact through me, and I make a nice spread on both sides. It is not much, but I believe it can grow if I had more working capital available.
A. I have legitimate real-world business opportunities that offer me 20-25% annual returns. They are limited in scale, but I am glad to make the 10-15% spread for my trouble and avoid the anal exam that comes along with bank loans.
Sorry, but unless you disclose the nature of these and offer some proof, there is nothing in your post to distinguish you from pirate in the early days. Merely offering lower returns does not automatically make you more trustworthy. I can offer 1% APR or 0.1% APR and still walk away with your money.
Please don't see this as an attack. From what I have seen of you on these forums, I believe you are trustworthy. I'm just pointing out that you will need to provide some proof of your RL business.
I don't see this as an attack at all.....people SHOULD ask hard questions, and be very skeptical. If we had more of that, perhaps Pirate would not have been able to take so many people for so many Bitcoins. Above I briefly explain the opportunities, and there is not much more to it than that. You would be financing my acquisition of very attractive equity in a business I have worked for nearly a decade.
I completely agree a lower APR does not automatically remove any risk of a ponzi.....I just hope in doing a more rational type of lending that is successful, persons will stop engaging in the type of schemes that inevitably blow-up. The insanely high yield offerings we see bandied about are a red flag, and a huge one at that.
