Lending Loans For Use In The Market Place
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I want to start lending loans, initially for use in the market place. I could also offer this as a service product, within the market place.
I see this as good way to promote feathercoin and the market place. I will start the process today, however dont get too exited! As i only have around 13 feathercoins to my name which i bought. I know, not much liquidity there ???
I would needsome help from people and donations to the pot, to give this more lending power/liquidity. Alternatively if you dont want to donate to the pot, i could effectively act as a broker. You send an amount of coins and I agree interest rate with you and a lender. The lender repays I return the funds to you and take some of the interest rate or a small fee for my work.
In case you want to donate my address is:
6sWUEyAxwf5mtRbgQoGY3YtMHhcxm3mUEq
So today myself i will start lending just 1 to 2 Feathercoins per loan. This could be perhaps if someone is just short of making a purchase on the market place. This would also start to build trust with users.
I would love to hear your thoughts on this. If this grows a bit, I will advertise as a service in the market place.
Many Thanks :)
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I’d probably avoid lending people coins without any collateral as you probably wont see most of it back. The service is a nice idea, but If you are going to make loans it should be out of your own pocket and not ask for donations to the service for yourself.
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Hi thanks for your comment. Yes i agree with you, which is why i am offering minute amouts. Not only because i dont have much collateral, but to build trust with forum members.
There will always be defaulters when lending is envolved i know. With building trust with forum members will help me best avoid defaulters. Also any defaulter after a certain period of time would be posted on here in a scam thread. So if someone wants to scam or intentionally default, they risk their forum reputation for a measly amount.
Also if i get to a position of offering bigger loans, i would require scanned copies of id, proof of incomings and address.
This remains to be seen :)
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[quote name=“acpacheco” post=“44605” timestamp=“1387112739”]
Hi thanks for your comment. Yes i agree with you, which is why i am offering minute amouts. Not only because i dont have much collateral, but to build trust with forum members.There will always be defaulters when lending is envolved i know. With building trust with forum members will help me best avoid defaulters. Also any defaulter after a certain period of time would be posted on here in a scam thread. So if someone wants to scam or intentionally default, they risk their forum reputation for a measly amount.
Also if i get to a position of offering bigger loans, i would require scanned copies of id, proof of incomings and address.
This remains to be seen :)
[/quote]People who try scam you or default on their loans probably won’t be that worried about having a bad rep as they’ll be likely just newbs who move on as soon as they’ve got their coins. I’d suggest trying to build rep other ways such as selling items on the marketplace or trading coins etc, just make sure to use a trusted escrow for transactions. Offering loans is a honest and good way to build up rep, but I’m sure if you’re lending to newbs you’ll have a decent amount not paying you back. Just take a look over on the lending section at Bitcointalk.org. Even with collateral or ID people often don’t pay back and just disappear.
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I don’t really think this is a needed service at all, I haven’t seen any interest for this and like the other guy said you’ll lose coins.
But hey, you’re free to try. :D -
Thanks for your input. I have to agree with both comments.
I think if feather coin takes off it will be a service. The price per coin at the moment is too low for people to need to lend ::)
I will try to think of other things i can do in the meantime. ;)
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Nice idea, let me be the first to +1 rep you for trying.
At the moment, It would be to much of a risk and wouldn’t really add to the market place I don’t think.
Most new comers aren’t really in the position to be spending ftc they don’t even have yet.
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Hi Calem, thanks for the rep, much obliged ;)
Hi Rapzid can you enlighten me.
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[quote name=“Rapzid” post=“44836” timestamp=“1387158726”]
Perhaps a first step would be to create a Feathercoin credit reporting bureau…
[/quote]
Fredit: Feathercoin cREDIT -
What are you thoughts?
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Part of me is thinking; bankers/loan-sharks/pawnbrokers/Wonga. Small loans are normally to people down on their luck. Its not a car loan or mortgage to buy a house. What % interest would you charge?
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Sorry I didn’t click straight away ::)
Get some Fredit, I like it.
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[quote name=“Rapzid” post=“44836” timestamp=“1387158726”]
Perhaps a first step would be to create a Feathercoin credit reporting bureau…
[/quote]Unless this could be put into the blockchain so it’s public and not controlled by a single person or group of people, there could be some serious issue’s trying to do crypto loans of any sort… I’m no expert but I’m not sure if you guys can see the big picture here…
I think that there’s some very pretty big hurdles to overcome…
I’m not saying ftc loans would be a bad thing, but it would have to be done quite tactfully indeed.
[i]edit[/i]
Also this raises the question about interest and ethics…
Lending a crypto, on interest… … Umm… Isn’t it loans with interest half the reason why the current fiat system is a zerosum endgame currency?
Maybe I haven’t picked the best words here, but, unless lending is done interest free and out of the kindness of your own heart to a person you know you can trust to return said “loan”, the idea seems counter intuitive to the fundamental premise of crypto’s themselves…
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I was thinking of keeping the interest simple like 10%. Borrow 1 pay back 1.1, 100/110 and so on.
To be honest I don’t think it is required based on the comments. If it did start we could have an interest free period for a time to begin with.
I think it will be something for the future, when crypto’s are mainstream and widely used, there will be crypto lending. There is already BTCjam, Bitlending Club and Bitbonds which are peer to peer lending for bitcoin. As other crypto’a gain more traction, (hopefully feathercoin) being one of the top four,(the champions league spots for crptos) I think we will see more crypto’s being offered as loans.
The hard part as I agree with you all is regulating and implementing strategies for these type of loans. I was trying to start very small to build a trust with a user base. I think as long as their is some form of exchange, be it fiat, crypto’s or chocolate buttons, their will be a need for finance. Not because people are down on their luck, but if a consumer is responsible and can afford to pay back, then in most cases finance can be helpful and benefitial to the consumer and a market.
I completely hear what you guys are saying about, loans and fiat currency so thanks for your posts, they have made me think. As crypto’s are decentralized I can’t see any other way at the moment, than peer to peer lending, should there be demand for it.
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There’s always a risk of the crypto price rising as well during the loan. I’ve seen/heard of people lending a few BTC when they were cheap, so if you lent 1 BTC when it was £60 then by the time you need to pay it back it’s worth £200+ or whatever, you’re pretty much screwed.
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Yes you are absolutely correct, but you could hedge the loan to another currency maybe?
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aside lending money, an idea which could be also good to look into, is to establish connection between seller and buyer on this forum maybe have a dedicated page with a moderator who follow the transactions and provide feedback to build trust, look for different methods of payment, bank transfer, western union and Paypal depending on your location…
it could be an idea…to work on
thanks
fred -
[quote name=“acpacheco” post=“44570” timestamp=“1387106389”]
I want to start lending loans, initially for use in the market place. I could also offer this as a service product, within the market place.I see this as good way to promote feathercoin and the market place. I will start the process today, however dont get too exited! As i only have around 13 feathercoins to my name which i bought. I know, not much liquidity there ???
I would needsome help from people and donations to the pot, to give this more lending power/liquidity. Alternatively if you dont want to donate to the pot, i could effectively act as a broker. You send an amount of coins and I agree interest rate with you and a lender. The lender repays I return the funds to you and take some of the interest rate or a small fee for my work.
In case you want to donate my address is:
6sWUEyAxwf5mtRbgQoGY3YtMHhcxm3mUEq
So today myself i will start lending just 1 to 2 Feathercoins per loan. This could be perhaps if someone is just short of making a purchase on the market place. This would also start to build trust with users.
I would love to hear your thoughts on this. If this grows a bit, I will advertise as a service in the market place.
Many Thanks :)
[/quote]The whole point of a deflationary currency is 0% interest.
You can’t generate more $$$ when there’s a limited amount of coin that will ever exist. -
Hi guys thanks for your replies ::) I feel I have bitten off more than I can chew ;)