This is why Bitcoin P2P lending is dead.

[Herbert2020]

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.

it has something to do with not wanting to lose that "thing" you are putting up as collateral mostly because of the changes in the price.

it doesn't matter what it is. but for example in case of litecoin or any other litecoin imagine you have made an investment in litecoin and want to hold it for a long term because you have speculated a big rise so you wouldn't want to lose this opportunity by selling soon. because if you sell the price can go up and you get left behind.

also another scenario is when you want to buy more litecoin so you put some as collateral, take a loan and buy more with bitcoin you get.

[1715550916]

1715550916

[gentlemand]

Fair enough but it doesn't add up to me. Why take an alt which is just as likely to plunge as to soar? And Litecoin seems to be the Coin That Never Budges so I don't really get why anyone would want to inconvenience themselves to speculate on something even more sluggish than Bitcoin.

[ausbit]

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.

Maintaining our anonymous is the biggest difference between P2P lending and other lending business. We should not let this business to die as there are lot of growth potential for bitcoin ecosystem based on lending in upcoming days is highly possible.

[yayayo]

I don't think that P2P lending is dead. In fact it's very much alive, considering that even the most simple-minded scammers are successful in securing funding... There must be an army of even greater fools that keep the market alive. Just looking over the beginnings of the descriptions of lending purposes in the tables posted tells me that these loan request are pretty generic scam attempts (for example "trading strategies").

In my opinion, Bitcoin lending is simply extremely risky and for most cases the risk/reward-ratio is not favorable. But I would not say that lending can't make sense for selected cases. The key is not to use investment sites, but to select lenders manually and always demand collateral that is easy to liquidate and covers the borrowed amount by at least 150%. Simple rule: Without collateral (it can be altcoin, precious metals, or for very small amounts even a forum account) no loan.

Personally I don't consider it worth trying, because the selection effort is high.

ya.ya.yo!

[Pursuer]

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.

Maintaining our anonymous is the biggest difference between P2P lending and other lending business. We should not let this business to die as there are lot of growth potential for bitcoin ecosystem based on lending in upcoming days is highly possible.

I am not so sure about this!
P2P lending is either based upon mutual trust or collateral and the fact that P2P lending using bitcoin bring about a certain amount of anonymity makes the "mutual trust" part hard. so there will always be one part of this unsatisfied and not being able to trust fully the other party.

[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.

Maintaining our anonymous is the biggest difference between P2P lending and other lending business. We should not let this business to die as there are lot of growth potential for bitcoin ecosystem based on lending in upcoming days is highly possible.

I support the lending aspect within one's own country or within state, or interstate lending. But to lend across country lines is a huge no no. If someone defaults in my country, I know who I can consult to go after the defaulter (if the sum is huge).

But if I were to lend 2 BTC to someone in Antigua and Barbuda and if he were to default, what should I do? Or, what could I do?

[defined]

Most people do not pay back a loan because they want to. They pay back because of the consequences if they do not pay it back.
As long as you are not going to hunt them down for 0.009 Bitcoin, they do not pay.

[rapazev]

sad... the only place i still lend some btc is poloniex. P2P never... if someone doesnt pay you, there's almost nothing you can do, so generally they will not pay.

[super5star]

But if I were to lend 2 BTC to someone in Antigua and Barbuda and if he were to default, what should I do? Or, what could I do?

You should not lend even to your neighbour/colleague without any proper collateral. Then, why you are going for Antigua and Barbuda. Rules must be same in all situations.
Lend with proper collateral and stay safe with your lending business.

[sbtctalk]

But if I were to lend 2 BTC to someone in Antigua and Barbuda and if he were to default, what should I do? Or, what could I do?

You should not lend even to your neighbour/colleague without any proper collateral. Then, why you are going for Antigua and Barbuda. Rules must be same in all situations.
Lend with proper collateral and stay safe with your lending business.

yes. But P2P lending sites do not require collateral from borrowers.

Most people do not pay back a loan because they want to. They pay back because of the consequences if they do not pay it back.
As long as you are not going to hunt them down for 0.009 Bitcoin, they do not pay.

You are right. So the trick scammers do is to take microloans from many people. No one is going to fight back 0.01 BTCs. If they were to get 0.01 BTCs from 20 people...

[eternalgloom]

I've never really looked into P2P lending since it has always looked kinda sketchy and easy to abuse.
Only site I've heard of is BTCJam, and I thought there were at least some success stories there.

But this looks pretty bad indeed...

[Backside walkaround]

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?

Some people don't want to sell altcoins because they think they'll shoot to the moon.  But apparently no one who borrows here even has any, because altcoins so infrequently get offered up as collateral.   Most of the requests are pure scammage.

[sbtctalk]

I've never really looked into P2P lending since it has always looked kinda sketchy and easy to abuse.
Only site I've heard of is BTCJam, and I thought there were at least some success stories there.

But this looks pretty bad indeed...

If you know of any successful stories (from lenders' perspective) on P2P lending, please share.

I am sure there are many successful stories of borrowers-turned-scammers ....

[gadman2]

And then everone continues to mock the banking system that requires legal documentation and non anonymity practices to provide rates less than half of these rates. Yeah, banks are terrible!

[Hellacopter]

P2P lending isn't secure enough, and its risky for lenders too, there is a possibility you don't get your money back and then you lose simply, that's why its not used a lot by Bitcoin's community

[Slark]

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 is never an answer. Even with advanced reputation system it can be exploited. I see all the time that someone is trying to sell his old Localbitcoins account.
What will stop people with cheating the system in the same way every time? Bitcoin lending without valid collateral and escrow is risky business.

[JeffBrad12]

P2P lending isn't secure enough, and its risky for lenders too, there is a possibility you don't get your money back and then you lose simply, that's why its not used a lot by Bitcoin's community

And that's why the main reason making the p2p lending service dies. a lot of abusers is tried for cheating it, and so risky. people will realize about that. and not needing an advice for leaving the service and will died for slowly.

[Wind_FURY]

I do not know what kind of security and identity checks and verification the site has but would it be a better idea to let the lender handle these things himself? All the site has to do is to make the guidelines on how and what kind of ID the lender should ask for from the borrower, what kind of collateral in case of non-payment and all that stuff. Recording all the transactions made will also be the site's responsibility. Other than that everything should be between the lender and the borrower. If someone wanted to borrow Bitcoins from me I should have the right to ask some ID and all other information from the borrower directly.

If you trust the site to do everything for you and let anybody borrow Bitcoins from you then that is just plain stupid.

[Herbert2020]

Fair enough but it doesn't add up to me. Why take an alt which is just as likely to plunge as to soar? And Litecoin seems to be the Coin That Never Budges so I don't really get why anyone would want to inconvenience themselves to speculate on something even more sluggish than Bitcoin.

well, litecoin that i said in my comment was just an example.
and the reason for it is just a speculation/trading reason and nothing else. it can be litecoin it can be ETH, XMR, Dash, Doge, or any of the other altcoins.

besides, there are a lot of different things that people do that never makes any sense
for example those newbie accounts who try to scam a loan of small size like less than 10 cents!!

[btccashacc]

yes. But P2P lending sites do not require collateral from borrowers.

well this is why the P2P lending site is turned to red, as for me i would never giving somone even for penies without collaterral. I just don't get it why they adopted this system, we don't even know the id that they provide is real or just photoshoped,since it's easy to manipulate the id.