Need a .12 BTC loan for basic living expenses.Will payback .136 BTC over the next 2 Fridays (self.BTC_Loans)The big news in bitcoin lending has always been the removal of the bank.Services like BTCJam facilitate peer-to-peer (P2P) loans using borrowers' real-world identities.But not everyone is interested in tying their real-world identity to their finances.The new subreddit FairShareLoans is attempting to make micro-loans without the bulky identity process.Creditworthiness of the borrower is determined by his Reddit karma and account history.The borrower is expected to pay back the bitcoin loan, with interest, within 30 days.But the subreddit's moderators seem to be taking on all of the risk themselves at this point (though they do accept donations to their lending fund).During the six days that FairShareLoans has been active, approximately 100 loans have been requested, ranging from 20 bits to 900,000 bits.Some users have posted about their experiences, citing that they've already paid back their loan and are excited about the potential of the subreddit.

The FairShareLoans subreddit is an extension of FairShare, which is a “plan to build a global, voluntary-stateless basic income.” It's not immediately clear how making loans contributes to the goal of a cryptocurrency-funded basic income, however.o'reilly bitcoinPerhaps the moderators plan to use their lending profits to finance a basic income fund?ethereum fork 2017Whatever the end goal, FairShareLoans is a small and potentially successful demonstration of the wide array of possibilities within P2P cryptocurrency lending.bitcoin proof of work algorithmDid you enjoy this article?bitcoin mehr verbindungenYou may also be interested in reading these ones: Students Could Save 17% on Loans by Paying with Bitcoin Pure-Central Facilitates Peer-to-Peer Crypto Lending Bitcoin Mind Map: Cryptocurrency Education Finally Made Simple?bitcoin besser als gold

Username * First Name Last Name Email * Password * Repeat Password * You registration completed successfully.ripple to bitcoin walletConfirmation email sent to email address provided.Email * Password *Warning: Do Not Lend On Poloniex (self.Bitcoin)submitted by This is a must read for bitcoin users.Poloniex allows you to lend bitcoins to others trading on margin.In theory, Poloniex will try to protect you from losses by forcing a person to liquidate if they're taking a beating.This is not true.I've tested lending one bitcoin over the last two weeks.That one bitcoin has gone from one bitcoin to .81 bitcoins now.That's a two week loss of 0.19 bitcoins.If I kept lending for a full year, I would have 0 remaining of the bitcoin at that rate.Interest rates must reflect the risk associated with lending and Poloniex's users don't seem to get this.In addition, due to these losses and how quickly they've piled up, Poloniex needs to re-evaluate cutting a margin traders losses much earlier.

Make no mistake: Poloniex still gets their fee, while I got the loss.It was a good experiment, but DO NOT lend bitcoins on Poloniex.The interest rates do not reflect the risk.In order to offset losses, interest rates should be over 150%.Spread this to anyone considering lending their bitcoins - they will lose in time.Guys, the purpose of this is to warn new people who make think that lending on Poloniex is 100% safe.Based on my experience, it's not.Whether you agree or disagree, I think we all agree that if we have a bad experience we should caution new users on this.I don't want new people to lose bitcoins, like I did, when they think something is guaranteed, but it's not.Also, this is not FUD because this says nothing about the value of bitcoin; this is about Poloniex.Stop with the "this is a FUD post" - no it's not a FUD post because bitcoin is strong and awesome.π Rendered by PID 13816 on app-399 at 2017-06-24 11:23:08.388829+00:00 running 3522178 country code: SG.I’ve talked a lot about BTCJam in earlier blog posts in the past year.

But it’s only now that I have a clear perspective of the complete pros and cons of the website.I also understand to a greater extent how to use it effectively, and that’s what I want to share with you in this blog post.For those of you who aren’t familiar with BTCJam, it’s basically a way for people to get loans without going through the bank.You see, some people don’t have a bank account or can’t get a bank loan because they’re not approved for it.That’s why peer-to-peer lending has grown so much and it’s a whole industry, regardless of Bitcoin.P2P lenders in the US generated $6.6 billion in loans last year.And now Bitcoin comes in to play giving people a whole new option to lend money with less fees, and to anyone in the world with an internet connection.So BTCJam is basically riding the P2P lending trending and creating a Bitcoin-focused platform.[tweet_box design=”box_02″]P2P lenders in the US generated $6.6 billion in loans last year.And now Bitcoin comes in to play.[/tweet_box]

The main advantage of P2P lending is that you can get significantly high interest rates for your loans.But as you probably know there is no high return without a high risk involved.And so, when you decide to give out your money to strangers, you’ll need to make sure they repay their debts.My first experience with BTCJam taught me this valuable lesson.This is how my first investment went.I invested ฿0.83990951 in a very solid investing profile (in my opinion at least).The first payment arrived flawlessly.The second payment was due on July 1st.Come July 5th, we (the investors) were still waiting for the payment.We started commenting on the listing page asking the borrower when is he planning to pay, but we got fragments of answers and vague promises that the payment would be made soon.No information was added other than angry investors demanding their money.I also tried contacting BTCJam, and although I got a quick response from their support team, there was nothing they could do other than check with the borrower also.

After 38 days the payment was finally made.I ended up getting 6.42 percent in two month for my Bitcoins, which is pretty good considering the alternatives in the market.However, I was also at high risk with this loan defaulting and ending up with nothing.So it basically boils down to how risk averse you are.Even though my first BTCJam experience wasn’t a pleasant one, I did end up making a high yield for my money.If this was calculated annually, I would have made almost 40 percent APR (annual percentage rate).Therefore, I decide to continue investing my coins, only this time I went about it a bit more wisely.So here are my current investments: As you’ll notice, all investments have a high rating, only positive feedback and most importantly a nice amount of previously repaid loans.It would have probably been even wiser to diversify my portfolio even more, but since I’m not investing a large amount of money at the moment (only 0.9BTC), I didn’t think it would be very effective.

May 2016 update: One of these investments has defaulted, read the full story here.For those of you who don’t want to watch the whole video, you can see below my investment picking principles in a nutshell: When reviewing any Bitcoin service, a lot of people turn to Reddit for the community’s opinion.I make it a habit to double check my findings on any Bitcoin service with the Bitcoin subreddit as well.There are quite a few reviews of BTCJam on Bitcoin’s subreddit and most of them are pretty positive, but that’s not the interesting information I wanted.I was looking for the dirt people have on the company.After digging in a bit deeper I found that the main negative feedback people had to say was that BTCJam take their cut from the borrower once the loan is active.This means that they get paid immediately even if you as an investor don’t.Combine that with the fact that there is no real way to enforce borrowers to pay back their debt and you’ll get a somewhat questionable reputation for a company that only provides you with a platform for lending and not enough support if and when you need it.

Also many people reported that there is a large amount of scammers on the site who are only there in order to get loans and never repay them.However, using the methods I described earlier and diversifying your portfolio as much as possible should result in a major risk decrease for you.Last but not least, you can always use the BTCJam’s “autoinvest” feature.This feature basically takes your money and diversifies it across different loans for you.Although I haven’t tried this feature, I tend to shy away from it, since past experience taught me you never want to give someone else the responsibility of managing your money.So make sure to use this feature at your own risk.BTCJam seems like a solid option for people who are willing to take calculated risks on their Bitcoins for higher rewards.Personally I’ll continue using this site following the principles I’ve described and will update you as things evolve.If you have your own experience with BTCJam I’d appreciate if you’d share it in the comment section below.