Is there anyone with info about the recent change in interests on BTCjam?
It´s kind of skyrocketed and now its weird levels of interest rate on new loans.
Good for lenders but less good for borrowers. In long term i believe this will reduce the use of jam because it´s to expensive to take a loan.
Rates are 10-35% per month and that is not really ok in my opinion.
Any ideas of how the new calculations are made?
GreenCoin
Btcam seems to take a lot of ideas from prosper, they also use set interestrates for different borrower risk ratings, the problem with some of the changes btcam has made recently is that they dosent look to be enouth thought throu, its not a good time to set locked rates before btcjam have got the defaultrate down to a resonable level like something in the 1-5% level so they should have worked on that part first.
The first attempt btcjam did with locked rates obviously missed the fact that they had to set correct risk premiums, all A rated borrower for example cant have a 0.3% interestrate on a 7/7 loan unless btcjam handles collections centrally as the defaultrate is more than 1 on 333 on such loans so that system led to a lot of investors having negative return and btcjams stat page keept getting worse witch isent good advertising.
I completely agree that the current interestrates is extremely high especially on shorter term loans on the lower credit grades, but the second attempt btcjam did with the current locked rates is probably on a more correct level in relation to the avg defaultrates but people in many countrys and businesses understandable cant afford such rates so the late payments & defaults will probably get worse as the category of borrowers that will still take such high interest loans is limited.
Btcjam really need to step back and take a different approach on the locked interestrates, its ok to cut the top and bottom rates that people offered before the locked rates a bit, for example things like <0.1% interests or >100% interests per month should not be possible to set as uneperienced lenders has a hard time to judge the risks, but there still must be some spectrum of allowed interestrates until btcjam can shown that the defaultrates for the last 12 month period is on an acceptebel level before they force borrowers and lenders into set rates as they clearly dont work good with high default rates.
If btcjam would work more on solving the problems the platform currently have instead before they are introducing more new functions i think the site would work much better for both borrowers, lenders and btcjam.
