How Bitcoin Empowers Global Peer-to-Peer Lender BTCJam

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San Francisco-based startup BTCJam is taking peer-to-peer lending to a global audience, and is using bitcoin to achieve its vision. Bypassing the restrictions of fiat currencies, the company says, allows any individual in the world to receive a loan via its platform. While traditional wire transfers are costly and not always easy to set up, bitcoin allows approved BTCJam borrowers to receive funds almost instantly, wherever they may live and whether or not they have a bank account. Celso Pitta, the company’s CEO, told CoinDesk: “We are a global lending platform. We use bitcoin as a payment method to enable international, cross-border lending.” BTCJam CEO Celso Pitta talking about his startup at CoinSummit. Source: CoinSummit From banker to bitcoin entrepreneur Pitta, who hails from Brazil, had prior experience in the finance industry before starting BTCJam: “I worked for Citibank. Knowing banking from the inside, I knew that I could do better: a peer-to-peer lending website.” However, Pitta reached his first stumbling block when he discovered the penalty for starting an unlicensed money-lending service in Brazil. “I noticed that if you do [lending] in Brazil, you will go to jail for 10 years,” he said. As absurd as that might sound to some, this potential roadblock is …

Two Bitcoin Companies Make the Fox Business List of 30 Hot Fintech Startups

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Fox Business published a list of 30 top fintech startups to watch in the Bay Area. The list includes two Bitcoin companies that offer simple and effective solutions for important real-world problems. BTCjam allows users to invest their bitcoin and earn a high rate of return. This process is secure and allows investors to participate in peer-to-peer lending. BTCjam is also a great place for those seeking loans, and especially for the residents of developing countries without a national credit scoring system who are subject to aggressive predatory lending practices when they need to borrow money from traditional lenders. Using cryptocurrencies such as bitcoin, and tapping foreign lenders, helps BTCjam avoid regulatory issues, TechCrunch reported in 2014. “We are one of the first real use cases for bitcoin,” said founder Celso Cardoso Pitta Jr. “Today people circle around buying and selling of bitcoin, but I don’t think bitcoin increases in value because it’s a commodity or a currency. It needs to be useful.” BTCjam is a marketplace where people from around the world connect to borrow and lend using bitcoin. By the end of 2014, the company had facilitated bitcoin loans in excess of $10 million dollars in value with …

BitLendingClub Makes P2P Bitcoin Lending Safer

BitLendingClub Makes P2P Bitcoin Lending Safer

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Would you like to borrow some bitcoins? If you are a fan of the idea,BitLendingClub has exactly what you need. BitLendingClub is a peer-to-peer (P2P) bitcoin lending platform which allows borrowers to select specific loans that match their loan duration and interest rate conditions. BitLendingClub operates on the “Dutch Auction” principle, where lenders may set a starting interest rate for certain loans, but the loans are only lent out when the interest rate drops to a level acceptable by potential borrowers. Borrowers have the option of setting their own interest rates. They may also reject offers from potential lenders if they do not believe they are receiving a competitive interest rate. Lending digital currency to unknown parties can be a very risky proposition. To reduce this risk, BitLendingClub uses Jumio to verify the authenticity of documents submitted by potential borrowers. BitLendingClub only charges fees on loans that have been repaid. It separates itself from other competitors such as BTCJam with its unique fee structure. Co-founder and CEO Kiril Gantchev sees the unique fee structure as a necessary risk that will pay off in the long run, as bad borrowers are gradually weeded out of the system. Gantchev believes that the P2P lending space can only grow in the presence …