Use Bitcoin as payment rail to invest in Chinese P2P lending

[Eric Mu]

I have been investing some money in Chinese P2P lending for over three years. Compared with Bitcoin, it has some advantages (and of course disadvantages too). My experience is that it is fairly safe and has yielded 15% APR. However, it is not available to most overseas users cuz Chinese bank account and ID are required. I am thinking if there a need for such a service using BTC as a payment rail and allow people around the world to invest in Chinese P2P lending. Does this sound like a good idea to you guys?

[Eric Mu]

Here is a summary of my experience: https://medium.com/@muxiaoliang/my-experience-with-two-chinese-alternative-investments-64365c027053#.gycova9gw

[Patatas]

Saturated.Many Peer-Peer lending platforms are being developed these days.Some of them are quite established.To name a few www.getline.in / www.btcjam.com / www.loanbase.com .If you have something extra ordinary to offer ,you might as well be a tough competitor . The collateral becomes a major problem with anonymous lending.

[4by2]

I think that the concept is good, but I'm not sure how many people would aim to make use of this opportunity.

I have a feeling that some people are actively interested right now. This probably helped them quite a bit.

[Eric Mu]

Saturated.Many Peer-Peer lending platforms are being developed these days.Some of them are quite established.To name a few www.getline.in / www.btcjam.com / www.loanbase.com .If you have something extra ordinary to offer ,you might as well be a tough competitor . The collateral becomes a major problem with anonymous lending.

I was not referring to BTC lending but Chinese RMB lending. BTC is used only as a way to transfer value cross the Chinese border. So the concept is different from btcjam and the likes.

[Kakmakr]

What type of Chinese regulation govern RMB lending? The problem comes in with disputes when something goes wrong and you have to try to get your money back. This will be a very volatile environment to lend out money in my opinion. The returns might be good, but the risks are high and the country a bit hostile. In the end this will be more a question of luck than anything else. If you are lucky to have less bad loans than good ones, you may turn a profit. ^hmmmmmm^

[Eric Mu]

What type of Chinese regulation govern RMB lending? The problem comes in with disputes when something goes wrong and you have to try to get your money back. This will be a very volatile environment to lend out money in my opinion. The returns might be good, but the risks are high and the country a bit hostile. In the end this will be more a question of luck than anything else. If you are lucky to have less bad loans than good ones, you may turn a profit. ^hmmmmmm^

As I said, I have invested a non-negoligible amount of money (CNY4500,000 ) in a P2P service for over three years and I have been profit positive every year. In recent months, I have had bad loans in the 500 - 1500 yuan range per month, but the net profit has been steadily around 6,000 yuan. You don't think these numbers are statistically meaningful in any way?

[honeyhtet]

I think it's interesting at least, I'm generally negative about peer to peer investment projects mainly because of the percentage of failure and unpaid loans and mostly collateral takes away the purpose of loaning, it's still interesting though.

[Eric Mu]

I think it's interesting at least, I'm generally negative about peer to peer investment projects mainly because of the percentage of failure and unpaid loans and mostly collateral takes away the purpose of loaning, it's still interesting though.

May I ask which service do you use? Having used a Chinese one for about three years, I have to say that my experience has been mostly positive.