Bitbond Review

By
Rafael Vieira (CreativeCompany.com)
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BitBond Review

Bitbond: The name of this game is high risk and high yield. BitBond provides all variety of loans; there is a significant number of loans to SME. The advantage is that the verification of income on this kind of loans is easier than on loans to individuals. Businesses have an online footprint, Google Analytics, Amazon links or eBay shops. This is data one can see and analyse.

SWOT Analysis

Strengths

  • No fees for the investor
  • Interest rates higher than 12% are common
  • Loans can be denominated in different currencies
  • Automated ranking of borrowers (How can you predict human behaviour?)
  • Bitbond’s acceptance rate is approximately 40%
  • Based in Berlin.
  • Loans are assigned a Credit Score from A to F this gives you an indication of the underlying risk
  • Bitbond has a system to recover debts
  • Bitbond promotes the use of Bitcoin. Bitcoin itself promotes decentralisation, which makes us more resilient and independent.

Weaknesses

  • Loan volume is lower than competing sites (which is probably a good thing)
  • No Skin in the game, BitBond does not itself invest in the loans on its platform.
  • For auto invest to work, you need at least one BTC. (Why in the world would they have such a limitation?)
  • The minimum bid amount is 0.01 BTC; this discourages newcomers (This does not help the newbie, the one who would like to learn the ropes of the system.)
  • Possibility of converting Bitcoin to USD and vice versa

Opportunities

  • Individuals and Entrepreneurs who do not have access to banking or loans can apply for it through Bitbond. Lending money on this platform is not charity, but there are some genuine people looking for seed money
  • Availability of info to make your judgment on the borrowers
  • Users are verified through connecting their accounts with other systems such as Google Analytics PaypalFacebook etc. This make is harder for the fraudsters.
  • Late payers face a series of reminders Emails, Phone Calls & SMS, Legal Letters, Debt collection agency & release of personal information to the investors.
  • If you have an online business. You can apply for a bitcoin loan

Threats

  • Bitcoin lending is still an emerging concept, and thus there could be some unknown – unknown
  • The platform can be hacked, and you can loose some or all of your Bitcoin. (This has not happened to BitBond as of 06/10, but it has happened to other platforms. The technology to secure bitcoin has evolved a lot)
  • The value of Bitcoin can increase of decrease. For example; if you lend $100 worth of bitcoin on the platform and get all the bitcoin back but in the meantime the value of bitcoin has decreased by 10% you will only have $90 + interest equivalent in bitcoin. However, the reverse also applies.

Visit BitBond and see for yourself if this type of investment fits your risk profile.

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