Bitcoin peer to peer lending
Too high interests is bad business Due to the high risk of defaults, the interest rates also needs to be high to compensate for the bitcoin peer to peer lending, this causes several problems Do business in bitcoins and the money you earn rises with the value of btc. The volatility of cryptocurrencies also offers an interesting opportunity for borrowers and lenders alike: Bitcoin lending sites are essentially the same, a centralized platform that bitcoin peer to peer lending borrowers and lenders, but marked differences in the way they operate exist. Loans are an important part of our society, they allow to grow your money by helping other people to overcome their temporal financial needs.
BTCJam has done some attempts on lawful collection. P2P loans are negotiated in an open marketplace, where borrowers post their requests for lenders to evaluate and invest if they are convinced that it is a solid proposal. That is why interest is high, to factor in the risk.
But yes, BTC price volatility ultimately hurts lenders. Bitcoin is not recognized in most countries, so the legal way is out of question. Our terms are very clear and the entire transactions can be completed same day.
Lawful collection of peer-to-peer loans, where a borrower has many bitcoin peer to peer lending, most of them lending an insignificant amount Lawful collection over country borders even more difficult. Bitfinex has also being hacked in the past, in an episode that strongly impacted the Bitcoin price. BitcoinP2PLoans — What is it and how does it work? However, there is a risk that the borrower fanatically will insist the "minor bitcoin" is the only Real Bitcoin, then the investors have to eat the loss.
Too high interests is bad business Due to the high risk of defaults, the interest rates also needs to be high to compensate for the defaults, this causes several problems Besides higher returns, investors have in Bitcoin lending a great opportunity to diversify their investments. However, there is a risk that the borrower fanatically will insist bitcoin peer to peer lending "minor bitcoin" is the only Real Bitcoin, then the investors have to eat the loss. The first big difference between fiat and bitcoin lending sites is the absence of credit scores, that is both positive bitcoin peer to peer lending negative for the involved parties.
If one believes the BTC price will go to the moon anytime soon, then it's IMHO just a bit too greedy to expect interest in addition to the growth of value. Bitcoin peer to peer lending borrowers do have the ability to hedge against the risk of a raising BTC. Unfortunately, some just won't accept the loss or be able to handle the loss
Some borrowers do have the ability to hedge against the risk of a raising BTC. Authors get paid when people like you upvote their post. Do business in bitcoins and the money you earn rises with the value of btc.