First of all this is NOT another get rich quick scheme look elsewhere if you want a 1% interest a day and risk to loose all your money to greed, Bitbond is a legitimate business with real people and a real office not some British “fake” company that only exists on paper. Check the about page to see the people behind it with their LinkedIn profiles.
[Bitbond
Bitbond is incorporated in Berlin, Germany and is a fully regulated financial institution with its own licence.
Bitbond is the first global marketplace lending platform for small business loans. It leverages blockchain technology to connect creditworthy borrowers with individual and institutional investors.
It’s a sort of a mix of a traditional bank and a crowdfunding site. Why would you invest your money into Bitbond if Bitcoin goes up without investing it? Well why not earn extra Bitcoins while your Bitcoin appreciates in value? It’s a win-win.
How does it work?
Bitbond vets the borrower just like a bank would but also uses AI to check their social media accounts, their linkedIn, Facebook & Twitter profile or Credit card or Paypal history.
You can choose what project or what person you want to invest your money in or opt for auto-invest and let Bitbond pick several opportunities that fit your risk profile. You can also see if the borrowers have been keeping up with their loan payments.
Loans on Bitbond have terms between 6 weeks and 5 years.
Due to low interest rates, putting your money in a savings account will result in you losing money. Savings accounts typically pay as little as of 0.8% average percentage yield (APY). There are other fixed income investments that provide a substantially higher yield and you should include them in your investment strategy.
On Bitbond you can make an average 13% APY on a globally diversified portfolio of small business loans. The difference this can make in your earnings is huge. Let’s say you put $1,000 aside. This is what you will earn in interest after 3 years.
Savings account with 0.8% APY: $24
Bitbond with 13.0% APY: $443
Difference: $419
What if the borrower defaults on the loan?
Should a payment be late for more than 90 days the loan is in default. The claims on all outstanding payments will be passed to a debt collection agency. This has a number of negative economic and legal implications on the borrower. Especially the ability to close new contracts like a mobile phone plan or a car lease become impossible as a result of collection. Amounts that are collected from the borrower will be paid to the lenders after deduction of collection costs.
As you can see the risk far less than when you invest in some HYIP that can run off with your money at any time. I advise to diversify and spread your risk over multiple projects and people as the minimum amount for a loan is 0.01 Bitcoin, this way you spread your risk even more.
Good luck with this opportunity! Of course if you need a loan to build a mining rig or your online business you can also use Bitbond to help you getting started.