Cryptocurrency lending business.

[MoonCoins]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

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[avikz]

It's a very new business model and it's too early to say anything about it. We need to see what is the percentage of the total loan volume becomes NPA. As of now, they are not offering loans to any individuals because it is particularly hard to recover such loans but they are doing it for institutions.

However, it has also increase the ease of borrowing money to many companies but again it is too early to comment anything good about it. Recovering the loans can be a challenge in coming years and that's what time will tell us!

[dothebeats]

Bitcoin loans aren't really uncommon, as it has been done for the past years and is still being done here in the forum (P2P loans and of course, BTCJam). I don't think they'd really be having a hard time getting the returns if they would ask for collateral, same as what most lenders here in the forum do. It'd be a huge market in the near future but as of now, if people can just directly apply for a loan in their banks, what need do they have for cryptocurrency loans?

[Magkirap]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

Bitcoin loans or simply called bitcoin lending are now become popular simply because of many people who want to have that. In this forum you can see a lending thread where you can borrow some bitcoin but it need collateral for assurance that you will pay.

[Upgrade00]

It's a very new business model and it's too early to say anything about it.

Bitcoin lending between individuals here on the forum has lasted for quite a while and has only recently become less used.
Between businesses may not yet be much advanced, but the concept is similar, and some use it as a way of trading without capital.

[SaepulMT]

I think this has been discussed a while ago, but my opinion about Bitcoin loans is quite interesting, because there will be many people who are helped by this Bitcoin loan.Because this is a new thing, of course many people don't know this yet, but with time, borrowing Bitcoin will be popular in the community

[MTVuser07]

It is difficult to say something now, since it is something new in business. Yes, and how it is generally adjusted, it is not clear. It is necessary to follow this and study.

[gentlemand]

This Genesis Trading lending service is not lending to schlubs looking for a car loan. It's for their giant whale trading friends to drop on crypto markets. They won't even pick up the phone to you if you're not already a deeply established player. The crypto won't ever leave the markets either.

As for conventional lending to mortals, fucking forget it. It will simply never, ever be viable. Every aspect of crypto counts against it.

[sunsilk]

It is difficult to say something now, since it is something new in business.

Not really a new kind of business but the model is the only thing that made it different. The banks are the leading in this kind of industry but with the intervention of crypto it made the model different.

Yes, and how it is generally adjusted, it is not clear. It is necessary to follow this and study.

Adjustments will be applied though this has been done even before and that was few years ago just like what other mentioned. And we have a specific section for individual type of crypto loans.

[Rightchoice]

Honestly speaking, I am not convinced of this model for many reasons, but I don’t think there is exactly a lot wrong with the some investment into it, but you obviously shouldn’t try to make massive investment in this due to the risk.

However, I only pick Best Crypto Lending sites only for obvious reasons only. I don’t go with new ones at all, that regardless of how good it might look, as risk just doesn’t make me feel comfortable with it.

[romero121]

This look like a large scale lending service with perfect collateral. It isn't the same as that we users get through poloniex or through our forum from trusted users using escrow services. Comparatively the lending business have decreased a lot than the past days as it hasn't generated big revenue as the market fluctuation is big.

[aceptamosbitcoin]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

From client point of view, I find it for very convenient, especially Nexo.
But I'm not so sure about the business part, because the lender is carrying all the finance risk - exactly opposite to a standard business lending model. Still crypto currencies are too volatile, but every start is harsh.

[Naida_BR]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

I think this is still not the time for such businesses to grow. It is very risky as these companies can be easily scammed due to different regulations among the countries of their counterparts. Due to this fact, these companies are very profitable right now. When demand goes high and the supply is less they can increase the rates they are asking and make more earnings.

[bassbity]

Maybe this in my opinion is not efficient because loans also need to guarantee what we have, and how many loans are not what we want.

[joromz1226]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

https://news.bitcoin.com/genesis-capital-processed-1-1b-of-cryptocurrency-loans-in-2018/

As I reading the articles, they have a good programs. But I'd rather stay away from it, it will be a big problem in the future if you borrow loans from it in my opinion. It is not a good idea or solution for me if we do this kind of methods. It maybe profitable according to their articles statement but still I'm not gonna partake in any kind lending business in cryptocurrency.

[eaLiTy]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

The risk is really high when it comes to attaining loan via bitcoin, even if all the documentation are perfect and you have a asset to pledge with relevant value then it is not a big deal even if the person does not replay the loan, but the problem stands when there is a big rally in the market, if i loan someone bitcoin now with the amount just over $3.4k will he be repaying in dollars worth or the exact one bitcoin even when the price touches an all time high valuation, the problem is there are many variables you have to over come before planning to start cryptocurrency lending business.

[gentlemand]

As I reading the articles, they have a good programs. But I'd rather stay away from it, it will be a big problem in the future if you borrow loans from it in my opinion. It is not a good idea or solution for me if we do this kind of methods. It maybe profitable according to their articles statement but still I'm not gonna partake in any kind lending business in cryptocurrency.

Unless you're worth several billion dollars, have several decades of track record on Wall St. and play tennis with Barry Silbert, you won't be allowed anywhere this particular lending service.

It's for financial players to play on markets and nothing else.

[Jesabela04]

I have heard of it and it has been roaming around the forum for months. As for me, it is a convenient way to invest yet a risky type of a decision that we could make because we don't know when we are getting a good profit here now that the market is currently down.

[BrewMaster]

it is not for everyone or in other words it can be a horrible business for some and a good one for the others.
for example if you are depending on the fiat value and making a living that way as the businesses logicall go, then you will be screwed a lot. and if you try to change the contract in a way to protect yourself against cryptocurrency price dumps then you will be outbid by the rest and out of a business.
but if you don't care about the fiat value that much and focus only on increasing your cryptocurrency amount, like loaning bitcoin to earn more bitcoin then it can be a good business although there are still headaches of collateral, defaults,...

[deisik]

Cryptocurrency loans emerged as an increasingly viable alternative to borrowing loans. What do you think about the cryptocurrency lending business?

As OP's these days don't care about making a short write-up on the things that they are linking to, I don't care about reading their stuff, so we are kinda square here. With that said, I assume this piece casually ignores basic economic rules regarding lending. Lending makes sense with stable assets (currencies) which price (value) can be reliably predicted to stay more or less the same in the future (at least, long enough to disincentivize the borrower from defaulting and you from losing). Otherwise, you, as a lender, will have to ask for so much collateral that the borrower would be better off financially by selling some of this collateral himself, which turns the whole business into an exercise in futility and stupidity

I guess that pretty much sums it up