Bitcoin doublers, gambling, betting, trading bots, investments and other methods of so called “bitcoin opportunities” abound on the internet today. All claim to be safe and secure ways of increasing your bitcoin stash.
After evaluating different so called opportunities, There is one particularly more reliable than most, though loss is still possible.
BTCjam has the mission statement that they “make credit affordable and accessible everywhere.”
BTCjam has provided more than $13 million dollars in over 15,000 loans, and due to the very nature of bitcoin, individuals that may not have the opportunity or access to loans can in many instances, apply for a loan and receive the funds in a matter of a few days.
BTCjam works in two separate areas: borrowing and investing, each has slightly different requirements and risk and rewards vary.
As a borrower, you first set up an account and then, through a verification process start to establish a credit rating.
The process involves verifying through social media platforms including Facebook, LinkedIn, BTC Talk and various others; services like Coinbase, PayPal and Ebay, your address, personal identification, income, banking and credit card information and other details.
As each becomes verified your credit rating increases. This author completed all but two verifications and received a C+ credit score. As an investor, these options are available and recommended, but not required.
Once one has reached minimum verification requirements, including address, a loan application can be completed and submitted.
The major negative for borrowers in the interest rate for those with low credit scores and can be greater than 50% if there is no borrowing or investing history and a minimum D- credit score.
This, of course, is a means to encourage investors and offset a greater likelihood of default. It must be stated, that the more information that is verified, the easier and more economical the interest rates.
As an example let’s say an individual applies for a business investment loan of 0.75 BTC, in order to secure new hosting for development of 5 new free coin faucets as well as a reserve for scaling up to faster and more reliable hosting. It would take an estimated 30 hours to reach 100% of the loan goal, and after accepting an interest rate of say 17.85%, an individual would receive funds deposited into a bank account in less than 4 days after completing the loan application.
The service has shown to be simple, and fairly painless, and after setting up an account simply requires the deposit of some bitcoin.
Once you have some working capital, visit the ‘Browse Listings’ and review loan application. You will see the amount, purpose, interest rate, repayment schedule, yield and the credit rating.
Those with an A credit rating and solid history can receive loans with the low interest rate of 2.85% annually; whereas the highest risk loans can be 50% or greater.
Deciding who to invest in may be a science or an art, depending on who you ask and many investors make it clear they have their own personal strategies.
Loans fund, or become available to the borrower once they are 70% funded, and can remain open for 14 days. The borrower can choose to activate or accept the loan once the minimum investment percentage is met, though they can wait until it is 100% funded or the application deadline has been reached.
The dashboard for both borrowers and investors is pretty simple to use with two exceptions. The first allows you to give or receive references to other users, and it is difficult to figure out how to request a reference from someone that is not showing on your suggestions page. The second is determining if a loan has been accepted by the borrower.
Viewing your loan, payments to be made, investments and other important information is simple and clear. When reviewing ones loans, the dashboard provides easy click payment options, a calendar for payment dates and amounts paid for principle and interest.
For the investor, similar data is available and one really nice feature is the Payments/Status section which tells you graphically how many payments are due in total and how many have been received already. In a few seconds it is clear how each investment is doing.
BTCjam offers an auto investing feature, which currently is yielding better than 19% and is very simple to set up and use. This is a data driven method that helps to reduce overall risk through diversification while increasing investment profit.
In addition to the auto investing, there is a ‘Notes’ market that allows you to sell and purchase investment ‘notes’ in a simple commodity styled format.
The future looks strong for bitcoin and those businesses that follow and innovate in the Satoshi Nakamoto mentality.
BTCjam provides a simple yet effective service, and because of this simplicity, it has been successful in spreading the decentralized economic theme around the world.
According to the BTCjam website, borrowers have received loans in more than 200 countries. Based in the Silicon Valley, the founders and staff are dedicated and highly respected and are clearly motivated to continually move forward in this bold new era.