Hey Everyone.
Its been a while since I have been online. My account was hijacked and unfortunately have no method of recovering.
I was wondering what everyone's opinion is on BTCJam?
Have you funded users and been defaulted on? If yes, have you seen any activity on getting funds back?
Been wanting to fund users but not sure on scams.
i started with 2 btc and made several investments to fund borrowers. id say several of them, much too high a proportion imho, have defaulted and were most likely frauds. the due-diligence and ratings are easily faked.
i have no confidence in the business model of lending in btc. most of those guys are either doing tiny amounts, to build reputations (so they can borrow more) or are doing larger amounts, with seriously flawed business plans to be able to repay. the risks are so high that the interests rates are through the roof, and, who could possibly afford to repay loans with interest rates in the 50-500% range !
most borrowers seem to be borrowing in btc and spending in fiat. cant possibly work, with such high currency risk.
i really wanted it to work. i think the site itself isnt bad. but the business model is deeply flawed.