[WANTED] $2650 Loan @ 18%

[SgtSpike]

I am looking for a $2650 loan to be funded by an equivalent amount of Bitcoins (currently around 240 BTC).  The loan will be used to purchase additional mining equipment (two SC Singles) from BFL.

I already have two singles on first-day preorder, which means I will be getting them in the first shipment BFL makes.  I will dedicate all coins mined towards paying off this loan.  Potentially, it could be paid off in just over a month from today.

I chose not to use BTCJam, because I do not believe they release enough information in the event of a default.  I feel as though I could create a more trustworthy transaction here.  If you would like to see this loan listed on BTCJam instead, please do say something, and if I do not have success here, I will list there.

TERMS OF THE LOAN:
- Interest of 1.5% (approx. 18% APR) will be compounded at 12:00 AM on the first of each month on the remaining balance of the loan at that time.
- Loan will be repaid at the Bitcoin equivalent of $2650 + interest.
- USD equivalent to be calculated at the Mt.Gox weighted average at the time of each payment.
- Payments will begin within a week upon arrival of initial mining hardware (currently estimated to be November 28th), and shall continue with one payment of at least $220 equivalent of Bitcoin per calendar month.

OTHER NOTES: I am willing to provide personal identification.  I own my home, so I'm not just going to up and disappear over a $2500 loan.  I also have a 4 year degree, a regular full time job, and a family to support.  I hate having debt, and always work to pay it off as quickly as possible.  However, I believe ASICs continue to make a sound investment at this point, thus my willingness to take on a bit of debt to add to my collection of miners.

[SaltySpitoon]

Let me get this straight if bitcoin doubles in value you pay half of what you really owe...

And if BTC drops 50% of its value, he owes 2x more than he really owes.

[mute20]

Let me get this straight if bitcoin doubles in value you pay half of what you really owe...

Just like any currency the values fluctuate with the market

[Projects]

Just to say I have a $1000 loan with Eisenhower (A reputable lender) along the same terms (pegged to the dollar) - so this loan is not taking advantage nor impossible to happen.
Just has to find someone who wants to guarantee a profit in fiat rather than BTC as Spike says - this type of loan is sensible to the borrower and profitable to the lender rather than gambling that BTC will rise in 6 months/a years time.

[panda1]

Looks like a straightforward loan to me, you lend out USD, get USD + interest back.  Less volatile than lending out BTC, getting BTC + interest back.
I like it!

[Akka]

Looks like a straightforward loan to me, you lend out USD, get USD + interest back.  Less volatile than lending out BTC, getting BTC + interest back.
I like it!

Well if its the case then I am sure Sgt would take the initial investment in USD no problem...

This is one of the amazing thing of BTC, if you use them as intended, meaning as a transfer medium of value, it enables global lending really easy.

One could buy BTC worth 2500$ and then lend this money to anyone in the world. He then receives 2500$ + interest in BTC back.

Where is the problem in that.

If you only see BTC as investment and don't lend out Fiat, than this is no deal for you.

[SaltySpitoon]

One of the amazing things about USD I can take $2500 then lend this money to anyone in the world and then get that back + interest without doing any extra step.

Find me a person who doesn't see BTC as an investment instrument.

I see it as a currency. Its just useful for buying certain things, Hardware, Games, Drugs, etc etc. And the price just varies a bit more than a normal currency. If anyone is investing in BTC long term, I think you are "Silly" for a lack of a better word that isn't offensive.

Anyway, this type of loan is actually very common. It has the same chance of working in the lenders benefit, as it does for the sellers. Either way, the person getting the loan is going to have to convert $2500 + interest, and buy BTC, whether its 250 BTC, 2500 BTC, or 25 BTC.

[SgtSpike]

I have changed the title to (hopefully) avoid further confusion and quell the naysayers.

Still looking for someone to fill it.  Terms are negotiable.

[caffeinewriter]

If I could afford it, I would. Plus, the fact that this is tied to the US Dollar is great, because even if Bitcoin plummets, you're still getting what you shelled out. Plus, I've done business  with Sgt. Spike before. He's a great guy.

[SgtSpike]

Thanks for the vote of confidence caffeinewriter!

I might give BTCJam a try after this...

[Eisenhower34]

First I have to say that 1.5% are pretty uninteresting, even if its denominated to USD. I have right now ~170 BTC to lend, but my rate would be 5% per 30 days denominated in USD. If thats too much for you, you can skip the following questions.

Do you have a loan history with someone?
Do you have a regular income, like a real job?
Do you have any other liabilities? Like CC / stundet loan / ...
In case BFL isnt able to deliver the promised ASICs or in case BTC price is dropping to 0, can you back the money and interest with your personal funds / income?

[SgtSpike]

Yes, that would be far too much!  Not quite as bad as a payday loan, but close...    I realize my offer is uninteresting to most people, especially given the wild interest rates often thrown around here, so I wasn't truly expecting someone to fulfill this loan.  I do have one interested party, though we haven't been able to make contact yet.  I'd rather just get a loan through prosper if I was going to do anything more than 25% APR.... likely, I could get a loan through them for around 10%, but I would rather have the caveat of not having to pay until my first batch of singles arrives.  And it wouldn't already be in Bitcoins = inconvenient.  And it would take 7 days to fund my bank account.

Anyway, enough rambling.  I haven't done loans with anyone here before.  I do have a regular income, as stated in my OP.  I do have a few other liabilities, which I would be willing to share with an interested party.  And I would promise to cover the money with my personal funds/income in the event of a BFL failure to deliver or BTC price drop to 0.

[Eisenhower34]

No problem.

(Off Topic: those "wild interest rates" dont come out of nowhere Alot of fraud happens, especially in bitcoinland, with the limited possibilities to verify identities or persecute someone... High risks come with high rates)

[SgtSpike]

No problem.

(Off Topic: those "wild interest rates" dont come out of nowhere Alot of fraud happens, especially in bitcoinland, with the limited possibilities to verify identities or persecute someone... High risks come with high rates)

Right, which is why I offered to comply with identification requests, etc.

Turns out my prosper loan rate is 9.74%... not bad!  I think I'll just go that route instead.

[firefop]

Hey dude if you're still looking in JAN - look me up =P