This week the largest conference in the peer to peer/marketplace lending industry, LendIt 2016, is going on. In the days leading up to the conference, I got the chance to speak to lots of movers and shakers including platform operators. One of the most interesting lending platforms out there is a new area for p2p lending but one of the oldest forms of financing, POS financing or financing at the Point of Sale.
How many of you are old enough to remember when stores used to do lay away? The Click Here To Continue
So far, I can honestly say I have one success and one failure on my AutoInvest program. Let's start with the failure first.
This isnt exactly my fault but my adding Bitcoin to my BTCJam account happened to almost exactly coincide with their announcement that they are exiting the US in terms of lenders and borrowers. Jam has said its for 2 reasons: regulatory climate in the US and their founding as an emerging market (Brazil first) lending platform to give options to those in these emerging markets Click Here To Continue
There's lots of news in FinTech so let's look at some of the bigger stories from the last week.
Is there trouble with funding for p2p loans?
A Bloomberg article from earlier this week discusses how investor service Moody's is downgrading a portion of a group of bonds issued backed by loans on the Prosper platform.
Impact: For you and me this seems like it would not be that impactful as this is very large institutional high finance stuff. However, the velocity of money, how fast money moves, Click Here To Continue
I'm not done setting up all my AutoInvest stuff yet, however 2 of my 3 accounts are set up: BTCJam and Loanbase. I thought I would show a screenshot from each and let the picture tell the story.
I started with BTCJam so I thought I would show theirs first.
What you don't see here are two things: 1) the term I selected caps out at 6 months so no 12 month loans for me and 2) No loans selected.
There are only 13 active loans listed and most of them are 1 year loans. The resulting Click Here To Continue
The AutoInvest experiment continues. My first stop, as I documented already in AutoInvest Step 1 was BTCJam. Now it's time for the 2nd stop, Loanbase.
I've made no secret of the fact that while all the platforms do things well and all of them have shortcomings that Loanbase is my favorite for a combination of reasons. These reasons include things like user interface and better searching/filtering features for me to figure out which loans I want to invest in with my coin.
But this is AutoInvest. Click Here To Continue
As I mentioned in this previous post, I am starting on AutoInvest on the big 3 Bitcoin lending platforms. In order to measure the returns and start the experiment, I have to actually start the experiment so I'm starting with what is still the largest Bitcoin lending platform, BTCJam.
Jam makes AutoInvesting pretty easy. First, where do you find it?
Right up at the top next to the Dashboard, there you go. Nice and easy. After clicking on that, I see this
Note that they say it is in Click Here To Continue
When people find out I have some expertise in Bitcoin based lending, one of the most common questions I get is about the AutoInvest feature offered by the big 3 lenders.
For infrequent readers, the big 3 Bitcoin lenders are BTCJam, Loanbase and Bitbond. They are the Big 3 because they have gotten outside funding and enough funding and legal advice to ensure they are at least legally compliant with Bitcoin in their home jurisdictions. All other Bitcoin peer lenders (other than exchanges) are Click Here To Continue
December ended what looks like a profitable 2015 for me in my quest for peer lending profits. Let's see how I did.
Lending Club Loans
High Rate Portfolio on LC
Bitcoin Click Here To Continue
Bitcoiners, slow your roll. Relax.
We all know by now that core developer Mike Hearn has chosen to leave the Bitcoin project and read his scathing critique about Bitcoin being a failure. You know and I know that it’s not a failure, that it’s a work in progress.
This does not mean we (the Bitcoin community) should act like a jilted lover and lash out at Mike or his claims with strong denials and claims of how crazy he is when some of his points are valid. A couple of the things he Click Here To Continue
With the moves made in December by Loanbase, now all of the big 3 BTC lending platforms (BTCJam, Loanbase and Bitbond) have fixed rate pricing for loans on their platforms. Fixed as in every A rated loan on the platform pays XX% interest and every B rated loan pays YY% interest.
This is a very controversial topic in Bitcoin lending communities and it makes sense that it would be, especially since 2 key features of Bitcoin (and its enthusiasts) are decentralization and consensus. Click Here To Continue