17 Jul Bitcoin Lender
Bitcoin investing has gone through the roof. There are tonnes of retailers that now accept the digital currency; Microsoft and Amazon to name a couple. Traditionally, buying and selling Bitcoin was relatively easy while borrowing it was not. It wasn’t until recently that Bitcoin lenders have appeared on the scene. At the moment, peer-to-peer Bitcoin lending seems to be the only real way to borrow Bitcoin other than Private Loan Shop’s direct Bitcoin loans. The following will discuss the difference between peer-to-peer lending and direct Bitcoin lending from Private Loan Shop.
Companies like BitLendingClub and BitBond run on a peer-to-peer lending platform where people, instead of lenders, fund the needs of others. These sites allow users to create a profile that advertises how much money they need to borrow and for how long. An individual or a group looking to invest their money funds the loan in return for profit via interest. BitLendingClub, for example, earns a fee once the loan is funded for bringing the borrower and investor/lender together and the investor earns interest on the money lent while the user is responsible for re-paying the investor. Below is a simplification of the process.
The drawbacks of peer-to-peer Bitcoin loans is that you need good credit to be approved and it may take weeks or even months before your need is funded.
Conversely, direct Bitcoin loans come directly from a lender. Private Loan Shop offers 24 hour Bitcoin payday loans that are quick and easy. The process is much faster than peer-to-peer lending and the approval rate is also much better. The loan application takes just a few minutes to complete and there isn’t any faxing of your identification or employment documents. Everything is done within the application form which is fast and super easy.
Bitcoin loans are in demand today more than ever due to the increased amount of businesses accepting Bitcoin. You can purchase many products and services with Bitcoin now but by 2015 you will likely have more options like the ability to pay your bills using the internet currency.