How does that work
Bitbond is a marketplace of bitcoin loans. It sells loans originated in various countries all the way, provides both personal and corporate loans issued by the company itself. Interest rates are around 10%-30% depending on the risk profile. The amount of loans is plentiful and I have never seen the marketplace empty.
On Bitbond You can also invest with the automatic portfolio.
Bitbond does not foresee a secondary market.
None of the loans on Bitbond is protected by repurchase guarantee (or buyback).
- Guarantee of repurchase of expired loans? No
What I Like
- Potentially high interests
What I don’t like
- Risk of the EUR-BTC Exchange completely discharged on the lender
- I personally found a recovery rate of 0% defaults
Conclusions (my opinion)
Bitbond would probably work well if it could recover the deteriorated credits. In my experience 20% of credits is in default and not even a penny of these has been recovered in 3 years. So let’s say that in my case the defaults (often at the first installment) have gone to erode all the possible margin by bringing it to zero. I gained only thanks to the change since the Bitcoin in the meantime has doubled its value.