Can bitcoins be used to transform thousands of lives positively while also giving investors better profits on their investment? The founder of Bitbond certainly thinks so!
Raising or collecting capital or loans is certainly a big challenge in most places in the world. Banks that basically collect capital from the public at low-interest rates and disburse them to loan seekers at higher interest rates are the biggest beneficiaries in the traditional financial system. But with lower returns than market inflation rates, customers are often at the losing end as the principle depositors of the banks. Meanwhile, even the most trustworthy borrowers are only able to borrow capital from their local markets. More often than not, borrowers are denied adequate credits by local financial institutions, which ultimately translates to lost opportunities in terms of business. That’s where Bitbond’s system that allows peer to peer lending worldwide can help borrowers and lenders alike.
In plain and simple words, Bitbond is a bitcoin-based P2P global loan marketplace. Based in Berlin, Germany, the company is headed by founder and CEO Radoslav Albrecht. The platform purportedly presents opportunities for investors and creditors to get higher than market returns, while also assisting borrowers to get loans easily without any hassle or very high costs. However, can you trust Bitbond and its users with your hard-earned money and really benefit from the system as a lender or a borrower? This Bitbond review is here to give you precisely that answer.
The Service Platform
Bitbond offers its service solely through its website www.bitbond.com. All users need to sign up and also connect their social media profiles to start doing transactions. Although most cryptocurrency transactions are done anonymously, as Bitbond is a platform for exchanging loans without physical collateral, the collateral here is the reputation of the user. It’s assumed by the backers of this platform that users that are careful about their reputation and have earned enough trustworthiness to take on bigger loans. The maximum borrowing limit is $25,000. While bitcoin is used for performing transactions, the base calculation can be done either in dollars or bitcoins. So, whether the price of bitcoins goes up or down, a fixed increment based on an agreed interest rate is guaranteed by the platform if you choose the dollar option.
It would be safe to say that not just anyone can take services from the platform, and there will be stringent checks to ensure that only the people with enough creditworthiness can expect to borrow loans. Investors are advised to be very careful in judging the reputation of the users, before agreeing to pay the loan, so as to prevent chances of losses. In the rare cases, the debt goes bad, creditors can avoid major loss by selling them to debt collectors as well, but those amounts need to be approximately 1 bitcoin for developing countries and 0.5 bitcoin for developing countries.
Firstly, users need to choose whether they want to register a lender account or a borrower account. A lender can, however, switch to become a borrower as well. Once users fill the signup details and click the ‘join now‘ button, they will get a verification email in their inbox. Once verified users need to fill several genuine identity verification details. In fact, in one crucial step, users need to be present in video and have their identity verified by a TM agent, along with the passport and national ID card details.
After all the verification processes are complete, you can start investing by funding your Bitbond account by clicking the blue Bitcoin Balance icon on the top right corner. You can also deposit funds in Euros and Dollars by directly connecting your bank account, but there will be certain reductions in your balance due to the transaction fees. Once your deposit is confirmed, you can start looking at investing opportunities by clicking the ‘Invest in Loans’ button. You can select several options beforehand including the risk rating (with A being the least risky and F being the riskiest), base currency and loan term. Once you have identified the best deal for you, click on the invest button which will then popup a window through which you can set the bid amount and then finalize the deal with the confirm button. Users also have the option to use the auto-invest feature with which you can set the preferences beforehand and allow the platform’s AI system to bid on your behalf.
For borrowers, proof of income also needs to be verified and once all the profile details are filled, you can submit your application to be a registered borrower. But do remember that it’s entirely up to the company to adjudge whether you can be a registered borrower or not. Once accepted you can set the preferences for loans like in the lenders and publish a loan request that can be observed by the lenders. Although the verification process is somewhat complicated, once registered, the lending and borrowing processes get very simple.
Support and Customer Care
Bitbond’s support team can be reached from several platforms including email, Facebook and Twitter. However, the email support team is the most responsive and users can expect replies within 24 hours. Some expert users comment that considering the relatively higher risks associated with non-collateral loans, maybe the company should have added phone service or live chat services as well to address grievances at the soonest. Perhaps BitBond will look at that in the future.
In many ways, Bitbond can be regarded as a revolutionary platform in the world of micro-lending and debt financing. It eliminates the middle-men and allows trustworthy debtors to link up with creditors and benefit both parties financially, all the while avoiding the massive complexity of traditional banking. However, so far it could be said that Bitbond loans are just starting to pick up and is still very far behind traditional banking organizations in terms of transaction volume and limits with less than $20 million worth of transaction done in the course of over 5 years. Meanwhile, the option to either be a debtor or a lender with a single account may prove to be discouraging for some users. However, with a lot of room to grow in the future and major capital injection from well-known investors, the future of Bitbond looks fairly bright. Hopefully, this review helped you to know how does bitbond work.