I noticed something interesting in my returns when I calculated my full portfolio returns for December 2014. You can review those returns in this post. The big impact of my Bitcoin based p2p lending returns is something even I was surprised to notice. I knew my returns there were volatile but I thought that the ups and downs would even themselves out at a slightly higher number than the 1% per month that is my portfolio goal each month. In case you didn't see, this is what it looked like:
Click Here To Continue
Each month I report to you how my loans perform. Usually I have loans in 3 categories: USD Platform loans like Prosper and Lending Club, Bitcoin loans and then Private loans to old business contacts and clients of mine from my previous business ventures.
This month is the first month since I started this blog nearly 2 years ago where I have no private loans to report on for you. I always differentiated those loans from the platform only loans that all of you can access despite using the same Credit Click Here To Continue
The US Auto loan business is struggling. Delinquency rates (late pays) from loans taken out just in 2014 are at their highest since the recession, per the Wall Street Journal on Friday January 9. These early payment defaults, as they are known if the lates go to default, are the most damaging to lenders and the economy. They are also the most damaging types of defaults for us p2p lenders too. If consumer credit quality as measured by car loans is declining, is our market next?
Auto loans Click Here To Continue
Of my 10 Rules that I follow that lead to profitable Bitcoin lending, one of the ones that is the most different from lending in USD is Rule #5. The ebook will be out soon for those who have been asking. Rule 5 says to Never Invest in a Borrower's Biggest Loan to Date. Let's see why.
The most consistent scam in the BTC p2p lending world is to borrow small and pay it off, borrow a little bigger and pay that off and then borrow really big and run with it. One guy did it with 70 BTC off of BTCJam Click Here To Continue
December was a busy month as I was asked to write 2 articles on Bitcoin based lending to be published soon. They have some similarities but are uniquely different based on the audiences they are supposed to serve. In the coming weeks you will be able to read more of my work on Bitcoin p2p lending (unique work that hasn't been posted here yet) in the following
Marketplace Lending Revolution Magazine
Yvan de Munck, who worked with Eaglewood Capital (the first firm to securitize a portfolio of Click Here To Continue
Recently I was introduced to Radoslav (he goes by Radko) Albrecht, the founder of Bitbond. Bitbond is the 3rd largest Bitcoin based peer to peer lending platform and it recently received a 200,000 Euro investment from Point Nine Capital. As you will see in the Q&A below, they are poised to make some big moves in the market. I was most interested in what they do to position themselves in the market and what they do to help investors feel confident in lending on their platform. Here are my questions Click Here To Continue
As most of you know by now, Lending Club is going public on Thursday. They are allocating some shares for retail investors like you and me. As part of their Direct Share Purchase program (DSP) with Fidelity, all potential investors get to see a copy of the Prospectus with S-1 SEC filing that LC filed with the Feds.My amended S-1 that I got came from Fidelity.
If you are a little retail investor and you are considering investing in LC stock, then here are 5 things you should notice that are in Click Here To Continue
There's quite a bit of debate in the Bitcoin Investing world about BTCJam. They are without question the largest BTC based peer lending platform and they have the most VC funding. The essence of the debate is whether the Jam are purposefully trying to only earn fees with no intent to eliminate scammers from their platform or not. It's an important question and those of us who have seen how the USD platforms work know that trust in the platform is one of the important keys to being successful. Click Here To Continue
When we invest in Prosper and Lending Club loans, we are lending overwhelmingly to individuals usually for Debt Consolidation purposes. On the Bitcoin based loan platforms, my loans are mostly to businesses. It's actually a sizable peer to small business lending environment but it just so happens that these businesses are BTC based businesses and operating within the Bitcoin economy/ecosystem.
For example, one of my borrowers is Jose, who is bringing Bitcoin adoption through his exchange to both Click Here To Continue