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How To Generate Passive Income with Bitcoin Peer-To-Peer Lending using BitBond

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Bitcoin Peer-to-Peer Lending

A while ago you decided to buy bitcoins, not only because cryptocurrency seemed as an exciting idea, but also because you were looking for investment opportunities. Now that you have found a secure way to store your bitcoins and can comfortably navigate through bitcoin exchanges, you may be asking yourself, what next? The good news is, there are various ways you can invest your bitcoins such as cloud mining, margin lending on exchanges, and investing in initial coin offerings (ICOs).

In this article, you will be introduced to one of the best ways to invest your bitcoins, which is bitcoin peer-to-peer lending using Bitbond.

What is Peer-to-Peer Lending?

BitbondPeer-to-peer lending refers to individuals lending to other individuals or small businesses via an online peer-to-peer lending platform. This allows individuals and small businesses who struggle to secure a bank loan to receive funding and allows private investors to lend money for a high-interest return. Peer-to-peer lending returns are higher than those of government bonds, for example, as individuals and small businesses have a higher credit risk and are, therefore, more likely to default.

Bitbond is the first and leading peer-to-peer lending platform using the digital currency bitcoin. That means that small investors from around the world can engage in peer-to-peer lending without needing a bank account.

If you believe that the price of bitcoin will continue to appreciate and you want to earn interest income on your bitcoins, then bitcoin peer-to-peer lending is an excellent investment opportunity.

How to Invest in Peer-to-peer Loans using Bitcoin

To invest in peer-to-peer loans you simply sign up to the Bitbond platform, deposit bitcoins into your Bitbond wallet and then browse through the available investment opportunities. Once you have identified the borrowers you want to lend to you invest your bitcoins into these loans. As soon as the loan has been fully funded your investment in that loan is finalised and you will start receiving monthly repayments with interest until your loan matures.

Bitbond Loans

Different borrowers have different risk classifications, time horizons, and interest rates. That allows you to adjust your levels of risk to the levels of returns you are seeking.

Your loan repayments will go straight into your Bitbond bitcoin wallet and you can then reinvest those funds or send them to a bitcoin exchange to exchange them back into fiat currency.

Diversifying your Lending

Investing in bitcoin peer-to-peer lending using Bitbond has a number of advantages. Key among them is the decentralized nature of bitcoin, which is not beholden to any country like other global currencies are. Therefore, this means whether you invest in someone from the United Kingdom, or Kenya you don’t have to worry about currency conversion rates.

Diversification is key when it comes to peer-to-peer lending. To reduce the overall default risk of your peer-to-peer loan portfolio, it is important that you spread you investable income across several loans. That way, if one borrower defaults, your overall loss is limited due to your diversification. Bitbond allows users to make investments as low as 0.01 BTC. This makes it possible for every user to diversify their lending portfolio across continents, people, and credit ratings. This, in turn, lessens the risk of borrower defaults.

Low Fees

A key feature about bitcoin peer-to-peer lending is the low fees involved for both lenders and borrowers. In the case of Bitbond, there are no charges incurred by the lender for investing or registration. A lender on Bitbond can expect to get returns on his investment without having to fork out money to cover the associated loan expenses.

In addition, Bitbond has one of the lowest origination fees you can find anywhere. The fees range from 1%-3%, the former being the smallest term loans and the latter, the longest term loan. Also, the minimum amount a borrower can loan is BTC 0.01. The maximum limit depends on the borrower’s ability to repay the loan.

Lenders can evaluate borrower’s business information

Unlike conventional P2P sites, lenders on Bitbond can learn more about borrowers through social media or by engaging them directly via the platform. Most borrowers on Bitbond are online entrepreneurs who sell products on large e-commerce platforms such as Amazon or eBay. You will find their social media and e-commerce accounts linked so that you can get a very good idea of who you will be lending to.

This means a lender can check out the borrower’s eBay page and read the customer feedback, which can help him decide whether or not to fund a project. Such stories are more reliable compared to the number of Facebook and Twitter followers a borrower possesses. Most traditional peer-to-peer lending platforms do not have this feature.

Higher Returns Than Other P2P Lenders

In 2015, US-based peer-to-peer Prosper recorded $14 billion in returns and an average interest rate of 6.87%, while its largest competitor, Lending Club, has an average interest rate of between 6%-8%. However, these returns pale in comparison to the to 13% average APR that you can generate on bitcoin peer-to-peer loans on the Bitbond platform.

Bitcoin P2P lending offers you one of the best ways to grow your money, as bitcoin usage continues to increase and new developments in the blockchain are creating more opportunities. Platforms such as Bitbond, do not have any hidden fees and offer competitive returns on your loans, thereby making P2P lending an excellent way for you to earn passive income regardless of where you are in the world.

If you want to start earning passive investment income through bitcoin peer-to-peer lending, sign up to Bitbond today and get started!

Bitcoin

Online Retailer Newegg Now Accepts Bitcoin in Kenya, Nigeria, South Africa, Tanzania, and Uganda

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Bitcoin Accepted

Online retailer Newegg has expanded its bitcoin acceptance to 73 countries, including Kenya, Nigeria, South Africa, Tanzania, and Uganda.

Newegg and BitPay Partnership

NeweggNewegg has been collaborating with BitPay since 2014 to facilitate bitcoin payments in the US and Canada. “Since this initial implementation, not a single chargeback has been required for any bitcoin transaction on Newegg. The companies now build on this successful collaboration by extending the bitcoin payment option to the 73 new countries announced today,” an official statement said.

BitPay processes bitcoin transactions worth more than $1 billion yearly for its e-commerce partners. The bitcoin payments company uses blockchain technology to offer transparent transactions and to eliminate chargebacks. BitPay also “enables Newegg to increase its margin on each bitcoin transaction by avoiding credit card fees typically assessed on credit card purchases.”

Anthony Chow, Newegg’s president global sales, said: “Five years ago, we were one of the first major online shopping destinations to accept Bitcoin, and our early-adopter customers were quick to embrace this new payment option. Broadening the ability to pay with bitcoin to the majority of our global network underscores our commitment to bring innovation to the online shopping experience, and answers customers’ growing preference for our bitcoin payment option.”

Newegg sells products such as electronics, gaming equipment, and smart home appliances to over 38 million registered users in North America, Latin America, the Middle East, Europe, and the Asia Pacific.

Buying Products with Bitcoin

Buying items on Newegg with bitcoin is simple. Like with other online shopping processes, you add your items to a cart and select the shipping address of your choice. Once you do this, you proceed to choose bitcoin as the payment option of your choice, review your order, and then pay using BTC. Newegg allows users to pay using computer-based, web-based, or smartphone-based digital wallets.

While South African payments service PayFast recently dropped bitcoin, Newegg is extending this payment option to more people across the globe, highlighting the benefit of using a borderless, decentralised digital currency to shop online.

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How Popular is Bitcoin Gambling in South Africa?

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Bitcoin Gambling in South Africa

Ever since bitcoin launched in 2009, it has had a tremendous impact on many different industries, including online gambling. Having a reliable and secure payment method is imperative in order to have a worthwhile gambling experience, no matter which forms of betting you subscribe to.

When online gambling websites began accepting bitcoin, players all over the world had the ability to make quick and easy payments, while also maintaining privacy. In a sense, bitcoin (and the cryptocurrencies that followed) started a revolution in the online payment sphere and its impact has been felt all over the world.

One country that has significantly enjoyed the benefits of bitcoin is South Africa. South African gamblers are becoming ever more fond of cryptocurrencies and bitcoin ranks among the most-used.

Bitcoin’s Popularity in South Africa

Before we can explore the prominence of bitcoin gambling, we first have to take a look at how well cryptocurrencies are received in the country.

While bitcoin is popular all over the world, it is especially liked in developing countries. Nowhere is the previous statement more true than in South Africa. In a recent study, researchers found that bitcoin ownership in South Africa exceeds the world average by two times. It is estimated that 5.5 percent of the global population owns cryptocurrency, while in South Africa 10.7 percent hold a crypto balance. In the previous year, crypto transfers have increased by 25 percent in South Africa in a trend that seems to have swept over the entire continent.

This Calvin Ayre opinion shows that the transactions are used for both financial and recreational purposes, meaning that cryptocurrencies including bitcoin are becoming a part of everyday life. As one can imagine, recreation can also cover online gambling and there is a rising number of people using bitcoin to place bets on their favorite casino games or sporting events.

The Dark Side of Bitcoin Gambling in South Africa

bitcoin gambling in South AfricaCryptocurrencies are becoming increasingly more popular in South Africa. However, one thing that many overlook is that bitcoin and altcoins are not regulated by any government authority. Effectively, bitcoin is not recognised as a legitimate and official transaction solution. So how does this affect the online gambling scene?

Аnother article about bitcoin for gaming shows that crypto gambling in South Africa is illegal due to lack of regulations from the appropriate authorities. Any South African players engaging in bitcoin gambling is doing so at their own risk and no government institution can step in to assist them in case of fraud. That is not to say that all gambling operations accepting bitcoin from South Africans are fraudulent, but there are no fail-safes and no measures in place to protect users.

So far, the South African government has been slow in implementing some if any regulations to ensure the rights of online players and the safety of any crypto enthusiasts.

Of course, this does not even begin to tackle the problem of regulating bitcoin and cryptocurrencies in general. The added anonymity features and the lack of centralised supervision make crypto hard to regulate.

Moreover, identifying the owner of a wallet is downright impossible without cooperation from other parties. This does not account for the fact that crypto users are developing additional measures to protect their anonymity when using their currency of choice, e.g. hardware wallets or dispersing their funds across multiple wallets.

Future of Bitcoin Gambling in South Africa

It is clear that the South African gambling scene is ripe for further implementation of bitcoin and blockchain technology. However, slow actions on the government’s side will likely stall any potential progress and leave all bitcoin gambling operations in a legal gray area, at best.

Unless regulators take a more proactive approach, it is unlikely that any significant developments will be made in the near future, putting thousands of gamblers at risk.

Naturally, placing the safety of its citizens should be the South African government’s first priority and ensuring that no fraudulent operation remains active for long.

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South African Online Payments Processor PayFast Drops Bitcoin

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PayFast Drops Bitcoin

South African online payment gateway PayFast will cease supporting bitcoin payments from July 20, 2019, due to high transaction fees and long confirmation times. The company expressed its frustrations through an announcement on its website.

Bitcoin’s Current Limitations

PayFastAlthough digital currency is meant to make online transactions cheaper, faster, and convenient, PayFast observed that bitcoin’s current limitations have made it difficult for the company to offer it as an alternative to traditional payment methods.

“Unfortunately, there are a number of limitations and design flaws unique to Bitcoin that make it an impractical substitute for cash, including high transaction fees and long confirmation times for buyers. We have tried various ways to mitigate these problems, but unfortunately, these issues are fundamental. The resultant poor user experience has led us to re-evaluate Bitcoin as a payment method on our platform and a decision has been taken to discontinue support for Bitcoin from midnight 20 July 2019,” PayFast explained.

The PayFast platform has a ten-minute window for the confirmation of bitcoin payments. However, the Bitcoin network has failed, in most cases, to confirm payments within this time period resulting in unsuccessful transactions. The Bitcoin network can currently not handle the volume of transactions it gets at a faster speed, PayFast noted.

Luno has been enabling bitcoin payments on the PayFast platform by acting as an intermediary. “To eliminate any risk posed by bitcoin’s price volatility, Luno locked the bitcoin to ZAR exchange rate for a ten-minute window. If the transaction was not sufficiently confirmed within ten minutes, the payment was unsuccessful and a refund would be due,” PayFast said.

The Bitcoin network can only handle seven transactions per second compared to VISA’s 24,000. This limits bitcoin’s usefulness as a means of exchange and an asset. Moreover, users making payments using bitcoin risk incurring non-refundable processing fees when the transaction fails.

Despite these challenges, the Lightning Network promises to improve bitcoin transactions by making them instant, low-cost, scalable, and acceptable across different platforms.

PayFast Remains Open to Cryptocurrency

PayFast hopes that as this space continues to grow, cryptocurrencies will be able to handle faster payments.

“We are eagerly following the developments of cryptocurrencies and the supporting technologies that are aiming to enable faster payments. As soon as these become workable alternatives, we look forward to supporting cryptocurrencies as a payment method in the future,” the South African company stated. 

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