Although BTCJam once held a lot of promise in the world of Bitcoin peer-to-peer lending, it looks like the end is near for this platform. The number of loan offers is decreasing, and a significant portion of users are unhappy with their recent decision to no longer provide future business opportunities to US lenders.
BTCJam Interest Keeps On Declining
Peer-to-peer lending is an attractive area to explore for Bitcoin companies, as the cryptocurrency is tailored to serve this purpose perfectly. However, the reality is vastly different, as regulatory requirements and legislative guidelines prevent these types of services from being offered in the US unless companies obtain a specific – and expensive – license.
BTCJam has recently decided to stop halting their lending services to US customers. Users who still have an open loan will stay under their “contract’ to repay the funds as soon as possible, though. There will be no future opportunities for Bitcoin users looking to offer a loan through the platform, and there is no indication this feature will ever return.
Needless to say, this decision has caused most Bitcoin lending activity on the platform to die down The number of loan listings has been diminishing over time, and is currently sitting as just above a handful. This is not boding well for a company that does not have the best of reputations to begin with.
One positive note for BTCJam users is how lenders are still repaying their loans in most cases, and withdrawals are still being processed. However, with the number of lending opportunities declining at a rapid pace, the future of this platform is not guaranteed by any means. Pulling out any excess funds might be a good idea at this stage, just to err on the side of caution.
It is sad to see such companies lose traction in the world of Bitcoin and cryptocurrency, though. Bitcoin has a lot of potential in the peer-to-peer lending industry around the world, due to its lower fees and global accessibility. Perhaps BTCJam was simply too far ahead of the curve to make this concept a viable business model at this stage.
Source: Reddit
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