Bitcoin Blog a1

Sunday, September 11, 2016

Days late and dollars short

A few weeks ago I mentioned that one on my loans on BTC pop was in default. Well just the other day I finally received a insurance payout. I invested 0.00386900 but I got  back  .00143100 instead, the biggest issue is the loan was due just a little more than a week after it was created on 07/07/2016. But because it defaulted, I wasn’t paid until the insurance payout came, just a few days ago. So my money was tied up for a long time and generated no interest. So I lost money, and I lost the opportunity to make interest on my money. But this is all part of the risk of lending to people.

The insurance system uses collateral held by the borrower to help guarantee repayment of the loan. This loan was insured using shares of POP, which is stock in BTCpop. There are a few other stocks offered on BTCpop, but in my opinion POP is probably the best. After all, my biggest worry is that BTCpop might go the way of Mt. Gox. If it did, all of the securities would become worthless. But, none POP shares also have the risk that the company itself will go under, in other words, they can become worthless in two different ways.

Well, I guess this Ivan fellow hasn’t given me any money. But at least he gave me a ok story. This is the loan, if you wanted to see it for yourself.

I just tested my link and you need an account to view it. Fortunately, you can sign up free here.

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