Bitbond is a peer-to-peer lending platform that deals in, you guessed it, bitcoins. If the idea of peer-to-peer lending is not exotic enough of an investment for you, try doing it in a currency that is literally given away as a prize for solving math problems. Find out how bitcoin marketplace lending works and why Bitbond has become a market leader.
The Marketplace Lending Boom
Marketplace lending, aka peer-to-peer lending, had a great year in 2015. It saw unparalleled growth and a strong investment performance. The big theme of 2015 for marketplace lending was the expansion of the industry. It’s not just big banks and hedge funds that are now interested in marketplace lending platforms. Bitcoin marketplace lending is now also a thing.
One of the key players in the bitcoin lending market is Bitbond, a Berlin-based peer to peer lending platform that raised $675,000 in May 2015 and now has a war chest that is just shy of $1 million. The German company launched at Finovate in 2015 and did so with a splash.
What is Bitbond?
Bitbond is a global marketplace online lending platform for small businesses. It offers small businesses a fast source of cash. While investors get a return on investment of around 13%. Signing up for an account takes a couple of minutes and there are no service charges. As of March 2016, Bitbond had 23,000 users and had funded over 1,100 loans.
Get a Bitbond Loan
Not sure what bitcoins are or why small businesses would want loans in them? Bitbond’s website offers free tutorials and webinars on how to invest in bitcoins.
What services and features does Bitbond offer?
- Bitbond offers small businesses access to fast loans with interest rates as low as 7.7%, although the average is closer to 20%
- Borrow from anywhere with an internet connection
- Origination fees range from 1% to 3%, depending on creditworthiness
Bitbond makes it easy for investors to diversify their portfolio in bitcoin lending. Here are its most important features:
- Global investment opportunity
- Instant transactions with extremely low fees
- Bitbond credit checks all members and rates them from A to F
- 0% service charge
- Simple setup
- Double digit returns
- Low minimum investment ($2)
- Autoinvest feature
Bitbond most innovative feature is probably the autoinvest tool. It allows lenders to set up filter borrowers by location, credit risk, loan term, and loan denomination. Once the filters are defined, you can invest automatically and by extension simplify the management of a global bitcoin portfolio.
What is the ROI for Bitbond?
Bitbond offers interest rates of around 20% to its investors. That translates into a return rate of 13%, once you include bad loans and fees. It should be obvious but it needs to be sai. Bitbond, as with all bitcoin peer-to-peer lenders, is a high-risk, high-returns investment.
Where is Bitbond available?
Bitbond is available wherever there are bitcoins, and bitcoins are available wherever there is an internet connection. That is the beauty of a decentralized digital currency.
Bitbond is one of the largest bitcoin peer-to-peer lenders in the world. It makes it easy for investors to diversify their portfolio into the high-returns (and high-risk) bitcoin marketplace lending niche. You don’t have to start big either. For just a couple bucks you can get your feet wet in the world of cryptocurrency lending.
Get a Bitbond Loan
Looking for a business loan but not sure whether you’re ready for a bitcoin loan? Try these other business loan providers.
Interested in marketplace lending but not sure Bitbond is for you? Check out the ROI and features of our top marketplace lenders.
Check this article if you’re interested in buying Bitcoin with a credit card.
Andrew is the managing editor for SuperMoney and a certified personal finance counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.