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Author Topic: Crypto Lending - Is Lending Crypto Currency Ready?  (Read 1085 times)
Stunny
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July 18, 2017, 09:46:01 AM
 #1

Does anyone lend, borrow Crypto? How and where you do it? How do you make sure that the borrower pays back? What are the benefits or drawbacks on lending cryptos? Are you lending from peers or using margin?

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July 18, 2017, 10:04:41 AM
 #2

have a look at SALT https://www.saltlending.com/

They are essentially doing the opposite of what you're asking for, you give them your crypto's as collateral and they lend you cash at competitive rates

What do you want the crypto's for? If it's for trading your best bet would be to join an exchange and trade with leverage (you are basically lending/borrowing crypto's to incrase the value of your trades)

WhaleClub offers such a service https://whaleclub.co/

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July 18, 2017, 10:31:00 AM
 #3

If you are talking about long term crypto loans then I don't think the market is stable enough. 

We're in a very new emerging market, so, say you borrowed one bitcoin now at $2300 over 5 years and in 5 years time the value of Bitcoin steadily increasing to $50,000 plus whatever interest you owe on the loan. That could cause some problems, but as the previous poster said, it depends what the borrower is  doing with them. 

Conversely, if you loaned out 20 Bitcoins for $46,000 value now and the price crashed to £50....  But it depends the terms of the loans and how you arrange to pay back etc

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July 18, 2017, 01:50:33 PM
 #4

have a look at SALT https://www.saltlending.com/

They are essentially doing the opposite of what you're asking for, you give them your crypto's as collateral and they lend you cash at competitive rates

What do you want the crypto's for? If it's for trading your best bet would be to join an exchange and trade with leverage (you are basically lending/borrowing crypto's to incrase the value of your trades)

WhaleClub offers such a service https://whaleclub.co/
[/quote

I was thinking that does anybody lend just as for example sending Crypto, you would send as a loan and expect it back for interest.

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July 19, 2017, 08:36:32 PM
 #5

If you are talking about long term crypto loans then I don't think the market is stable enough. 

We're in a very new emerging market, so, say you borrowed one bitcoin now at $2300 over 5 years and in 5 years time the value of Bitcoin steadily increasing to $50,000 plus whatever interest you owe on the loan. That could cause some problems, but as the previous poster said, it depends what the borrower is  doing with them. 

Conversely, if you loaned out 20 Bitcoins for $46,000 value now and the price crashed to £50....  But it depends the terms of the loans and how you arrange to pay back etc

hmm... I think that when businesses and people live more in cryptoeconomy it makes more sense. For example, if people are getting salary in BTC or ETH, the prices movements might not matter. I think blockchain startups and ICOs are currently developing in to this direction.

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July 21, 2017, 09:02:25 AM
 #6


hmm... I think that when businesses and people live more in cryptoeconomy it makes more sense. For example, if people are getting salary in BTC or ETH, the prices movements might not matter. I think blockchain startups and ICOs are currently developing in to this direction.

Yeah for sure, if crypto gets adopted on that scale then things would settle down a lot.  Imagine Bitcoin as the reserve currency of the world lol

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July 21, 2017, 02:10:45 PM
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hmm... I think that when businesses and people live more in cryptoeconomy it makes more sense. For example, if people are getting salary in BTC or ETH, the prices movements might not matter. I think blockchain startups and ICOs are currently developing in to this direction.

Yeah for sure, if crypto gets adopted on that scale then things would settle down a lot.  Imagine Bitcoin as the reserve currency of the world lol

I think it is not a bad Idea based on this documentary: https://www.youtube.com/watch?v=XcGh1Dex4Yo

To conclude, today banks do not need money to lend, they create it themselves  Undecided

Concerning the volatility, there should be a good way to hedge against crypto. The way I see it, volatility does not matter when you are dealing solely in the crypto field. For example, you borrow in crypto and you got income in crypto. Volatility is not an issue here. On the other hand if you will repay the loan with fiat income, there volatility could become an issue   Tongue

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July 21, 2017, 02:24:31 PM
 #8

crypto in the form it is now will  never, ever be suitable for lending.

an irreversible currency that lives on an internet filled with scum guarantees disaster. people should forget the idea completely.

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July 21, 2017, 02:26:45 PM
 #9

i only lend crypto from my friends for a short term, i will pay him coins if the price pump, and pay him money if the price dump

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July 23, 2017, 09:50:53 AM
 #10

crypto in the form it is now will  never, ever be suitable for lending.

an irreversible currency that lives on an internet filled with scum guarantees disaster. people should forget the idea completely.

Do you really believe that there is not way to secure loans? For example by using collaterals or reputation, oracles or prediction market? I find it hard to believe  Tongue

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July 23, 2017, 09:54:49 AM
 #11

This thing called peer-to-peer (P2P) lending was (or is?) very popular especially in China, along with Bitcoin as a P2P currency, which was very suitable. But the Chinese goverment has cracked down on it, and almost everywhere you will find this model has failed. Even with collateral, insurance people lost a lot of money due to fraud and borrowers defaulting.

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July 23, 2017, 12:09:32 PM
 #12

Does anyone lend, borrow Crypto? How and where you do it? How do you make sure that the borrower pays back? What are the benefits or drawbacks on lending cryptos? Are you lending from peers or using margin?

Systematic lending cryptocurrencies would be very hard to actualize. or even if it has been actualized, it would be very difficult to sustain it for a long time. As we all know, cryptos are subjected to its price volatility. The price change can happen in as fast as a second It's value is not fixed like the fiat money. So, if you'll loan cryptos to exchange it for fiat, charging interest would be difficult.  Aside from price volatility, security is also one of its drawbacks. There are many scammers in this digital world. How will then you monitor and verify the credibility of the loaner accounts? I dont think it would be a good idea.

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July 23, 2017, 12:36:03 PM
 #13

This thing called peer-to-peer (P2P) lending was (or is?) very popular especially in China, along with Bitcoin as a P2P currency, which was very suitable. But the Chinese goverment has cracked down on it, and almost everywhere you will find this model has failed. Even with collateral, insurance people lost a lot of money due to fraud and borrowers defaulting.

How does the risk control work in China, is any credit rating used, or why there is such amount of fraud?

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July 27, 2017, 02:52:30 PM
 #14

Does anyone lend, borrow Crypto? How and where you do it? How do you make sure that the borrower pays back? What are the benefits or drawbacks on lending cryptos? Are you lending from peers or using margin?

Systematic lending cryptocurrencies would be very hard to actualize. or even if it has been actualized, it would be very difficult to sustain it for a long time. As we all know, cryptos are subjected to its price volatility. The price change can happen in as fast as a second It's value is not fixed like the fiat money. So, if you'll loan cryptos to exchange it for fiat, charging interest would be difficult.  Aside from price volatility, security is also one of its drawbacks. There are many scammers in this digital world. How will then you monitor and verify the credibility of the loaner accounts? I dont think it would be a good idea.

I agree that the volatility haunts us all on crypto. I think at some point some crypto might have less such as that are backed by less volatile commodities.

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July 27, 2017, 03:41:35 PM
 #15

Does anyone lend, borrow Crypto? How and where you do it? How do you make sure that the borrower pays back? What are the benefits or drawbacks on lending cryptos? Are you lending from peers or using margin?

In some exchanges (such as Bitfinex and Poloniex) there is the option of margin trading, where an user can borrow crypto coins from other users to trade with leverage: "Bitfinex allows trading participants to use third party peer-to-peer financing from other participants on the platform to trade Digital Tokens. Financing Recipients may obtain financing in one of two general ways: they may place bids for financing on the Financing Order Book; or, they may elect to be automatically matched through the Site’s order matching engine with one or more Financing Providers on the Financing Order Book at the best prevailing price on the Financing Order Book."

You can lend BTC, ETH and other coins to other people and get them back with interest.

The longer you lend it, the better are the rates you get. But if you lend it for, say, 30 days, and suddenly (before the 30th day) price goes up and you want to sell, you won't be able until the person who borrowed from you send it back to you.

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