This is why Bitcoin P2P lending is dead.

[franky1]

P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)

P2P can be harsh, like here, you need REALLY GOOD reputation system close to perfect one to this have any chance to succeed

the only way it would work is that the lending site itself took responsibility, and chased after scammers
since you hand over bitcoin to the lending site. you are not investing bitcoins on the scammer.. you are investing an SQL balance within the site with the scammer.
it is the lending site that "owns" the coins it receives and "gives" the coins to the scammer
it is the lending site that "owns" the documents and ID it is handed by the scammer.
it is the lending site that "owns" the coins it receives back (not often) and "gives" the coins to the user when they ask to turn their onsite credit into real bitcoin

the user does not get to see the passport or other documents of the scammer, so the users should not be taking the responsibility of loss. the lending site should

when a lending site just works as a chat room and then the users then privately tell each other their passport details and proof of residence. then the lending site can absolve itself of responsibility.

but when the lending site takes a users money, does the vetting of the scammer, promotes the scammer as credible and hands the money to the scammer
then the lending site should be involved with chasing the scammer. especially if there is no way for the first user to know the scammers life story.

but we know lending sites wont do this. so its best to just stay away from lending sites.

[sbtctalk]

P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)

P2P can be harsh, like here, you need REALLY GOOD reputation system close to perfect one to this have any chance to succeed

the only way it would work is that the lending site itself took responsibility, and chased after scammers
since you hand over bitcoin to the lending site. you are not investing bitcoins on the scammer.. you are investing an SQL balance within the site with the scammer.
it is the lending site that "owns" the coins it receives and "gives" the coins to the scammer
it is the lending site that "owns" the documents and ID it is handed by the scammer.
it is the lending site that "owns" the coins it receives back (not often) and "gives" the coins to the user when they ask to turn their onsite credit into real bitcoin

the user does not get to see the passport or other documents of the scammer, so the users should not be taking the responsibility of loss. the lending site should

when a lending site just works as a chat room and then the users then privately tell each other their passport details and proof of residence. then the lending site can absolve itself of responsibility.

but when the lending site takes a users money, does the vetting of the scammer, promotes the scammer as credible and hands the money to the scammer
then the lending site should be involved with chasing the scammer. especially if there is no way for the first user to know the scammers life story.

but we know lending sites wont do this. so its best to just stay away from lending sites.

If lenders have a good credit history, there should be no reason why he cannot get loans or credit from his local banks. But each country's banking system works differently. Perhaps it is very difficult for some to get credit from banks.



But you are right in the sense since lending sites took their commission, they should be partially responsible to bad loans. So the system will work if the lending site has offices in the countries they operate to thoroughly vet the lenders but again that defeats the purpose of decentralisation.

[The Sceptical Chymist]

I hope by posting my experience here would allow more people to understand the downsides of P2P lending.

I think most of us who've been here a while understand completely.  When you get green-trusted legendary users scamming for $50, you kinda sorta get the impression that borrowers of bitcoin are scumbags as a rule.  Not all of them, but enough to absolutely require collateral for even the smallest loan.  The results here don't surprise me in the least.

[VanDeinsberg12]

P2P isn't always the best thing , unless there is a very good designed reputation system , things could go wrong. As far as I know , lending websites have a system to ask users for Residence,ID,passport etc... so you should be able to take actions against them unless there is something that prevents you from doing it. (from the ToS or something)

But that's not an easy for taking action against them if happening a problem with them caused by the different country will making for doing that is just like an impossible things, and more money will exit from my pouch and that's very bad for me.

[gentlemand]

the only way it would work is that the lending site itself took responsibility, and chased after scammers

The only way it would work for me is if someone sent me 100 BTC at the same time as I handed over 100 BTC. Have I just come up with an exciting new business concept? I'll get back to you on that after a feasibility study.

[sbtctalk]

I hope by posting my experience here would allow more people to understand the downsides of P2P lending.

I think most of us who've been here a while understand completely.  When you get green-trusted legendary users scamming for $50, you kinda sorta get the impression that borrowers of bitcoin are scumbags as a rule.  Not all of them, but enough to absolutely require collateral for even the smallest loan.  The results here don't surprise me in the least.

To side track a little - I've seen new comers requesting for very small loans in the Lending section - we are talking about 0.00x BTC amounts here. Makes me wonder what inspired these new comers to go through all these efforts knowing they can't get anything out of this.

[gentlemand]

To side track a little - I've seen new comers requesting for very small loans in the Lending section - we are talking about 0.00x BTC amounts here. Makes me wonder what inspired these new comers to go through all these efforts knowing they can't get anything out of this.

I don't understand the lending section here and never will. It seems to purely be 0 post zombies asking for a 'loan' followed by three pages of senior members sneering at them. I suppose the senior sneerers would miss it if it was gone.

[sbtctalk]

To side track a little - I've seen new comers requesting for very small loans in the Lending section - we are talking about 0.00x BTC amounts here. Makes me wonder what inspired these new comers to go through all these efforts knowing they can't get anything out of this.

I don't understand the lending section here and never will. It seems to purely be 0 post zombies asking for a 'loan' followed by three pages of senior members sneering at them. I suppose the senior sneerers would miss it if it was gone.

Old timers here are having fun sneering at scammers. Scammers will keep trying and ply their social engineering trade here, especially with sob sob stories.

It is thanks to these scammers we have a very cynical community in here.

[pooya87]

it is not dead and never will be dead. any lending system whether it is in bitcoin or fiat is based on trust and unless that trust is provided no one can trust anyone!

what you did is like a bank instead of asking for collateral (e.g. taking your house) sets up an open box filled with cash that anybody can come put his hand in and take some.

[Monnt]

it is not dead and never will be dead. any lending system whether it is in bitcoin or fiat is based on trust and unless that trust is provided no one can trust anyone!

what you did is like a bank instead of asking for collateral (e.g. taking your house) sets up an open box filled with cash that anybody can come put his hand in and take some.

Lending business should not die, as it will have more potentials to contribute to the development of bitcoin related businesses. I have seen bank system have made miracles in rural development in many countries, similarly we could expect bitcoin lending will take bitcoin to many new people.

Properly managing this business must be more important so that both the lender and borrower will get the true benefits of lending. More options for valid collateral would help this business to grow, I believe.

[cluit]

More options for valid collateral would help this business to grow, I believe.

Yes, valid point. Without collateral there won't be any lending business. But, practically we must have many different types of collateral to be submitted for a loan. Innovating more options for having different types of collateral, definitely would help both the parties.

[pratap11]

I also dont believe in p2p bitcoin lending because i dont think its possible for you or that site to recover the amount that some one scammed.
Suppose some one taken 0.5btc loan and scammed then there is nothing you can do to person living in another country,even if you want to take him to court that would even cost it more that you lend him and no guarantee weather he still pays or not.

[clickerz]

I would never use this p2p lending, so many scammers there, if they don't give real collaterals, i can't trust them online. Bitcoin world is a wild west

There are a lot of scammers nowadays. Have you try the Lending section on Poloniex? I made some of my btc put on lending there, thought the interest is quite low (you are the one,who will set your lending interest rates) so far its OK.

[CraigWrightBTC]

I hope by posting my experience here would allow more people to understand the downsides of P2P lending.

Ok thank you for your share about the experience, where do you made investment in lending business? Usualy the people using loanbase or btcjam and it went fine, i think you have to show the details about the website.

[sbtctalk]

I hope by posting my experience here would allow more people to understand the downsides of P2P lending.

Ok thank you for your share about the experience, where do you made investment in lending business? Usualy the people using loanbase or btcjam and it went fine, i think you have to show the details about the website.

It is loanbase. There have predefined investment settings. I chose the medium risk settings.

Now its resumed its old name bitlendingclub

It may be as bad as btcjam

[el kaka22]

More options for valid collateral would help this business to grow, I believe.

Yes, valid point. Without collateral there won't be any lending business. But, practically we must have many different types of collateral to be submitted for a loan. Innovating more options for having different types of collateral, definitely would help both the parties.

In real life lending business, they could pledge gold or real estate properties. But, with digital format we might have only very less options for various reasons but within being anonymous. Established altcoin coins are being considered as valid collateral by many lenders in this forum, still I too agree we need to innovate more options for collateral.

[sbtctalk]

More options for valid collateral would help this business to grow, I believe.

Yes, valid point. Without collateral there won't be any lending business. But, practically we must have many different types of collateral to be submitted for a loan. Innovating more options for having different types of collateral, definitely would help both the parties.

In real life lending business, they could pledge gold or real estate properties. But, with digital format we might have only very less options for various reasons but within being anonymous. Established altcoin coins are being considered as valid collateral by many lenders in this forum, still I too agree we need to innovate more options for collateral.

If lenders used Alt coins such as LTC as collateral, I did wonder to myself why not they sell these LTC for Bitcoins? Why go through the hassle of lending and have to return more? Sometimes, there are issues in the crypto world that I cannot figure it out.

[gentlemand]

If lenders used Alt coins such as LTC as collateral, I did wonder to myself why not they sell these LTC for Bitcoins? Why go through the hassle of lending and have to return more? Sometimes, there are issues in the crypto world that I cannot figure it out.

I've asked this question a few times and failed to receive a satisfactory answer. It's best to leave them to it. They all must have a mysterious agenda we're not being informed of.

[sbtctalk]

If lenders used Alt coins such as LTC as collateral, I did wonder to myself why not they sell these LTC for Bitcoins? Why go through the hassle of lending and have to return more? Sometimes, there are issues in the crypto world that I cannot figure it out.

I've asked this question a few times and failed to receive a satisfactory answer. It's best to leave them to it. They all must have a mysterious agenda we're not being informed of.

Let's leave this question open to the wiser members in this forum. What is the most legitimate answer you've received so far?

[gentlemand]

Let's leave this question open to the wiser members in this forum. What is the most legitimate answer you've received so far?

Um, there wasn't one. Someone mumbled something about not having to sell their alts or something as we all know what a strain it is doing 3-5 clicks. I gave up and continued with my life.