DEVTOME.COM HOSTING COSTS HAVE BEGUN TO EXCEED 115$ MONTHLY. THE ADMINISTRATION IS NO LONGER ABLE TO HANDLE THE COST WITHOUT ASSISTANCE DUE TO THE RISING COST. THIS HAS BEEN OCCURRING FOR ALMOST A YEAR, BUT WE HAVE BEEN HANDLING IT FROM OUR OWN POCKETS. HOWEVER, WITH LITERALLY NO DONATIONS FOR THE PAST 2+ YEARS IT HAS DEPLETED THE BUDGET IN SHORT ORDER WITH THE INCREASE IN ACTIVITY ON THE SITE IN THE PAST 6 MONTHS. OUR CPU USAGE HAS BECOME TOO HIGH TO REMAIN ON A REASONABLE COSTING PLAN THAT WE COULD MAINTAIN. IF YOU WOULD LIKE TO SUPPORT THE DEVTOME PROJECT AND KEEP THE SITE UP/ALIVE PLEASE DONATE (EVEN IF ITS A SATOSHI) TO OUR DEVCOIN 1M4PCuMXvpWX6LHPkBEf3LJ2z1boZv4EQa OR OUR BTC WALLET 16eqEcqfw4zHUh2znvMcmRzGVwCn7CJLxR TO ALLOW US TO AFFORD THE HOSTING.

THE DEVCOIN AND DEVTOME PROJECTS ARE BOTH VERY IMPORTANT TO THE COMMUNITY. PLEASE CONTRIBUTE TO ITS FURTHER SUCCESS FOR ANOTHER 5 OR MORE YEARS!

BTCjam

BTCjam was the first company to establish a crowd lending platform for Bitcoin users, and is currently still the most popular services in this area.

Crowd lending

Crowd lending fits well with the character of Bitcoin, as both involve peer to peer networks which cut out the banks as middle men and allow ordinary people to take control of their finances and deal directly with each other. In the case of crowd lending, a person wanting to take out a loan would post an offer stating how much money they want to borrow and how much interest they are willing to pay. Other members of the website are then able to provide provide part or all of the funding for this loan. By the time the full loan amount has been pledged, there may be hundreds or even thousands of people contributing small amounts to the total. If enough people are willing to contribute, then the loan will be issued and the repayments will be sent to each of the lenders according to how much they contributed. This provides a peer to peer alternative to the traditional banking model in which some people deposit money into a bank and the bank then lends that money out to people who want to borrow and passes only a small part - if any - of the profit to the person whose money is being lent out.

BTCJam Review

When you first sign up for an account with BTCJam you are asked whether you would like a borrower account or a lender account, and this will then determine how the website is presented to you and how your profile is displayed. You can, however, switch from a borrower to a lender account, or vice versa, at any time.

Borrowing Bitcoins

Each borrower on the BTCJam website is given a credit rating, and this can then be used by lenders to sort loan requests, quantify risk, and determine how much interest they would require to make it a worthwhile investment. Credit ratings range from A+ down to D-, and a user's credit score is determined by a wide range of factors. When you first join as a borrower you will be asked for a range of information and documentation to prove your identity and financial situation. Linking social network accounts to your profile, linking a verified Paypal account, providing references from another member, and uploading proof of identity and proof of income documents can all help you to increase your credit score. For regular borrowers, repayment history from the site itself and the number of currently open credit lines you have will also be contributing factors.

One of the things that I found a little bit strange and disappointing about the site is that it seems to discriminate against people whose income is paid partly or fully in digital currencies such as Bitcoin itself. The required proof of income documents include things like payslips or bank statements. Personally I am self employed; very little of my income ever hits the banking system or comes with a paycheck. I earn a little over half of my income in digital currency (including the Devcoins I get for writing on this site!), whilst the rest is generally paid into my Paypal account, only some of which is then withdrawn to my bank. Since any proof of income I could provide would show me earning a really tiny amount, and I don't know any other members to get a reference from, I found it impossible to get a high enough credit rating to stand a chance of getting a loan at anything even remotely close to a fair rate. Obviously, however, this will not apply to most people, and loan request do seem to get funded at reasonably competitive interest rates if you can meet the requirements to get an A or A+ credit rating. Also some members start off by requesting a 'reputation loan' - where they borrow a small amount with a very high interest rate and pay it back over a week or two in order to start building a credit history with the site and therefore improve their credit score.

Lending Bitcoins

If you have a little bit of money to invest then you can browse through listings and choose which ones you would like to invest in. You can invest as little or as much as you want.

The site features a mixture of personal and business loans. Many of the business loans are for high risk activities such as day trading funds, but do offer high interest rates in return for this elevated risk. You can filter the listings according to the borrowers credit rating or the length that the loan will be repaid over – from 1 week to 1 year.

As this is a peer to peer marketplace for loans, it is you as the lender you bears the risk - so if the borrower does not repay you will lose your capital. In order to minimize risk, the site advises you that it is a good idea to invest a small amount in many different loans, to spread this across as many different types of loan as possible including business and personal, and to take care to avoid investing in multiple loans to the same borrower.

Categories: Finance | E-Currency | Bitcoin


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