3500 BTC, 2 yr loan

[REF]

I'm looking for a loan to expand my mining operations. This is a long term loan lasting 2 years, I will be paying 10% APR. Payments will be quarterly, for a total of 8 even payments. I will be purchasing FPGAs with this loan. I have free electricity but only to a point, the low power usage of FPGAs will assure that I stay under the limit and guarantee me profits. Id prefer no more then 7 lenders with a minimum deposit of 500 bitcoins but Ill consider making exceptions.

I will provide ID and whatever else is requested. Feel free to ask questions. These are some past trades Iv completed on this forum, 1, 2, 3, 4, 5, and 6.

[ciuciu]

What is in it for the lenders?

[Blazr]

I'm looking for a loan to expand my mining operations. This is a long term loan lasting 2 years, I will be paying 10% APR. Payments will be quarterly, for a total of 8 even payments. I will be purchasing FPGAs with this loan. I have free electricity but only to a point, the low power usage of FPGAs will assure that I stay under the limit and guarantee me profits. Id prefer no more then 7 lenders with a minimum deposit of 500 bitcoins but Ill consider making exceptions.

I will provide ID and whatever else is requested. Feel free to ask questions. These are some past trades Iv completed on this forum, 1, 2, 3, 4, 5, and 6.

That interest rate is pretty low for a BTC loan.

[ineededausername]

I'm looking for a loan to expand my mining operations. This is a long term loan lasting 2 years, I will be paying 10% APR. Payments will be quarterly, for a total of 8 even payments. I will be purchasing FPGAs with this loan. I have free electricity but only to a point, the low power usage of FPGAs will assure that I stay under the limit and guarantee me profits. Id prefer no more then 7 lenders with a minimum deposit of 500 bitcoins but Ill consider making exceptions.

I will provide ID and whatever else is requested. Feel free to ask questions. These are some past trades Iv completed on this forum, 1, 2, 3, 4, 5, and 6.

It does seem like the lenders would be better off buying a mini rig with that kind of money (if someone covers all 3500), or just buying mining bonds.

[Kluge]

I can't get bites on USD @ 2.25% monthly, much less BTC. I'd be very, very jealous if you get this. Keep this updated so I know when to cry.  

[ShadowAlexey]

Come on guys, how are you getting this rates?
Why should people lend you their money, when they can put it in real bank with better interest?
Or lend much less sum for mush bigger interest?

[Blazr]

Come on guys, how are you getting this rates?
Why should people lend you their money, when they can put it in real bank with better interest?
Or lend much less sum for mush bigger interest?

A real bank only pays 4-5% interest/yr on savings account deposits, and thats not tax free.

[ShadowAlexey]

Come on guys, how are you getting this rates?
Why should people lend you their money, when they can put it in real bank with better interest?
Or lend much less sum for mush bigger interest?

A real bank only pays 4-5% interest/yr on savings account deposits, and thats not tax free.

Well, in my country you can get 8% everywhere, at this terms it would probably be 12%. And if you are bank worker you can get up to 30%. Am I missing smth?

[Kluge]

Come on guys, how are you getting this rates?
Why should people lend you their money, when they can put it in real bank with better interest?
Or lend much less sum for mush bigger interest?

A real bank only pays 4-5% interest/yr on savings account deposits, and thats not tax free.

Well, in my country you can get 8% everywhere, at this terms it would probably be 12%. And if you are bank worker you can get up to 30%. Am I missing smth?

Dunno which country that is, but it sounds like it'd be a nice place to keep money at.

In US, it is frequently well under 1% annually on checking accounts, with savings accounts ~1%. If you jump through a bunch of asinine hoops (maintain $5k+ balance, buy 10+ items with your debit card monthly, etc), you might be able to get 4-6% annually. Multi-year CDs typically only pay ~2-3% annually. You'd lose more to inflation than earn on keeping it in a bank. That said, loans usually only charge 5-15% with decent credit and collateral (20%+ for credit cards, though).

[SaltySpitoon]

My interest rate is .75%! And I'm pretty sure thats above the average, Go U.S!

[wachtwoord]

Didn't almost all Irish banks nearly default a year back or something?

[ShadowAlexey]

Well, in my country you can get 8% everywhere, at this terms it would probably be 12%. And if you are bank worker you can get up to 30%. Am I missing smth?

If you put money in a bank, they pay you a very low amount. Obviously if you're lending direct to somebody you can alot charge more.

Never heard of bank workers getting 30% interest, it wouldn't surprise me (banks make much more than that off the money in a lot of cases)

8% is reasonable, but what is the Deposit Interest Retention Tax (or equivalent) in your country? I'd probably reduces the rate down to 5% after it.

It`s off taxes when it is <=8% of interest. More than that gets 35% tax for income.
I`m talking about Russia and rubles. In case of dollars it would be 5% max.

[Blazr]

Didn't almost all Irish banks nearly default a year back or something?

Yes, during 2008 there were a couple of bank runs and government stepped in and had to guarantee all the banks assets (at the time they couldn't afford to pay 10% of their assets, but it stopped people from doing bank runs). We did/still do have a banking crisis, that was due to the economic downturn & corruption in the banks (bank managers gave themselves loans for millions and then put the money on the stock market & then paid it back).

I've had this interest rate for many years, during the Celtic tiger (huge growth in Ireland, banks were one of wealthiest in the world), during Irish recession (where a few banks closed), and still have it.

[Kluge]

Dunno which country that is, but it sounds like it'd be a nice place to keep money at.

In US, it is frequently well under 1% annually on checking accounts, with savings accounts ~1%.

Is that pre-tax at 1% or after tax?

Never knew banks paid such low interest rates in the US.

Pre-tax. My credit union only provides .25% annually on checking and savings. However, almost everything there is fee-free.

[REF]

It does seem like the lenders would be better off buying a mini rig with that kind of money (if someone covers all 3500), or just buying mining bonds.

This is different from the lender investing in a RIG or a mining company because it doesn't depend on difficultly or price of BTC. The lender knows exactly how much he/she will be getting over the next 2 years, with no fluctuation.

This is about the same as a bank loan as mentioned earlier in the thread. A large part of bitcoins is not using the banks is it not? I think it would be interesting and more appropriate to have the loan in bitcoins because I will be getting bitcoins from mining, provided the lender doesn't want to be paid back in cash I wont have to convert the coins to cash.

[Blazr]

The lender knows exactly how much he/she will be getting over the next 2 years, with no fluctuation.

It will fluctuate much more than a difficulty increase when you run off without paying

[ineededausername]

It does seem like the lenders would be better off buying a mini rig with that kind of money (if someone covers all 3500), or just buying mining bonds.

This is different from the lender investing in a RIG or a mining company because it doesn't depend on difficultly or price of BTC. The lender knows exactly how much he/she will be getting over the next 2 years, with no fluctuation.

This is about the same as a bank loan as mentioned earlier in the thread. A large part of bitcoins is not using the banks is it not? I think it would be interesting and more appropriate to have the loan in bitcoins because I will be getting bitcoins from mining, provided the lender doesn't want to be paid back in cash I wont have to convert the coins to cash.

10% APR => 21% over 2 years.
To underperform that, you need less than 0.8% returns per month, geometrically averaged over the next 24 months.  The difficulty/block reward ratio would need to go up 48 times over the next 24 months in order to even reach 0.8%, let alone a geometric mean of 0.8% over 24 months.

It just seems like a sure bet that mining bonds are going to pay out more than this.

[Cablez]

I was thinking about doing something similar to get in on the larger equipment available but it seems most lenders are not comfortable with a year long loan or more 'reasonable' interest rates.

I may just back up the loan with my current equipment as the hedge.

Good luck on procuring the funds.  I will be watching intently.

[REF]

Seems like its not going to happen in bitcoins. I was on my way to the bank to get a 16k loan but I may wait a little bit now, too many things are cooking in hardware development with FPGAs and ASICs. By the end of june it looks like a lot of information will be relieved.