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Financisto
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May 26, 2017, 06:45:54 AM |
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While dealing with cryptocurrencies, loans without collateral are unsustainable. (Unfortunately) other companies will follow BTCJam's example (sooner or later)...
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There are several different types of Bitcoin clients. The most secure are full nodes like Bitcoin Core, but full nodes are more resource-heavy, and they must do a lengthy initial syncing process. As a result, lightweight clients with somewhat less security are commonly used.
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Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
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Dudeperfect (OP)
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May 26, 2017, 10:13:36 AM |
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I am on a breakeven point at this moment, the interest earned is almost equal to the bad debts so it was an average experience for me, still appreciate the efforts of BTCjam.
But there are still many people who are in loss due to bad debt. Personally I think BtcJam is complete failure and they may come up with new improved and secure lending platform. Almost all P2P lending platforms are struggling to give secure lending service and nobody have found a proper way to do it. Yes, it was a failed experiment and I ended up at break even position just because I have been investor since years and decided to stop investing further when I realized the percentage of bad debts. I am not feeling guilty or something I understand that the model was having some issues and it was not a scam. While dealing with cryptocurrencies, loans without collateral are unsustainable. (Unfortunately) other companies will follow BTCJam's example (sooner or later)...
Yes we might see imitations but you simply can't do anything about it. |
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posternat
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May 26, 2017, 03:33:41 PM |
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I am on a breakeven point at this moment, the interest earned is almost equal to the bad debts so it was an average experience for me, still appreciate the efforts of BTCjam.
But there are still many people who are in loss due to bad debt. Personally I think BtcJam is complete failure and they may come up with new improved and secure lending platform. Almost all P2P lending platforms are struggling to give secure lending service and nobody have found a proper way to do it. Yes, Most people just take the loan with the intention of not returning it back and that is real cause of failure of such systems. There is no proper way to collect the collateral from the loan takers. I think loans at bitcointalk forum are much more secure due to strict policies being enforced here and people get their account compromised if they dont return on time. |
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Dudeperfect (OP)
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May 27, 2017, 04:51:24 AM |
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I am on a breakeven point at this moment, the interest earned is almost equal to the bad debts so it was an average experience for me, still appreciate the efforts of BTCjam.
But there are still many people who are in loss due to bad debt. Personally I think BtcJam is complete failure and they may come up with new improved and secure lending platform. Almost all P2P lending platforms are struggling to give secure lending service and nobody have found a proper way to do it. Yes, Most people just take the loan with the intention of not returning it back and that is real cause of failure of such systems. There is no proper way to collect the collateral from the loan takers. I think loans at bitcointalk forum are much more secure due to strict policies being enforced here and people get their account compromised if they dont return on time. That's why the lending section of bitcointalk works best and I see no one gives you a loan without collateral unless you have very good reputation and track record. The recovery option on Btcjam was through the legal arbitrary system but to be honest, it's very complicated to sue the loan defaulters around the world and that too for each $5, $10 worth of loan so at the end it was a pure waste of time imo. |
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Financisto
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May 28, 2017, 11:18:53 PM |
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(...) The recovery option on Btcjam was through the legal arbitrary system but to be honest, it's very complicated to sue the loan defaulters around the world and that too for each $5, $10 worth of loan so at the end it was a pure waste of time imo.
I'd say it's almost impossible, that's why I insist that BTCJam's (and competitors') business model is unsustainable...  The rule of gold is: "No Collateral, No Money"! |
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flower1024
Legendary
 Offline
Activity: 1428
Merit: 1000
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May 29, 2017, 03:35:59 AM |
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(...) The recovery option on Btcjam was through the legal arbitrary system but to be honest, it's very complicated to sue the loan defaulters around the world and that too for each $5, $10 worth of loan so at the end it was a pure waste of time imo.
I'd say it's almost impossible, that's why I insist that BTCJam's (and competitors') business model is unsustainable... The rule of gold is: "No Collateral, No Money"! These sites want to verify people identity based on the documents, but there are so many fake documents are available, and it is quite hard to find out what is correct or not. That's why when people take bigger loans easily they will disappear, and these sites will have a hard time to find a person. Finally, the lender will lose the money. So as you said this kind of sites will success if they allow lenders to own a collateral and they just some % of transaction money then it will success otherwise no. |
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Dudeperfect (OP)
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May 29, 2017, 09:25:54 AM |
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(...) The recovery option on Btcjam was through the legal arbitrary system but to be honest, it's very complicated to sue the loan defaulters around the world and that too for each $5, $10 worth of loan so at the end it was a pure waste of time imo.
I'd say it's almost impossible, that's why I insist that BTCJam's (and competitors') business model is unsustainable... The rule of gold is: "No Collateral, No Money"! These sites want to verify people identity based on the documents, but there are so many fake documents are available, and it is quite hard to find out what is correct or not. That's why when people take bigger loans easily they will disappear, and these sites will have a hard time to find a person. Finally, the lender will lose the money. So as you said this kind of sites will success if they allow lenders to own a collateral and they just some % of transaction money then it will success otherwise no. Agree but I don't think BTCjam is in a position to recover the bad debts and transforming their system as they already have decided to shut down their business. They used to provide the details of loan defaulters to the lenders but as we all know, the fake documents are worth nothing and since it is international portal, it is not economical to take legal action against everyone. |
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TheButterZone
Legendary
Offline
Activity: 3052
Merit: 1031
RIP Mommy
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May 29, 2017, 10:26:12 AM |
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Probably some game theory involved, but they could have tried using BTC as collateral, as in, you can't get a loan for more than the amount you timelock or multisig; if the loan isn't paid, the collateral goes to the lender.
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Saying that you don't trust someone because of their behavior is completely valid.
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