In this article we are presenting you some extracts of our whitepaper to help you understand our vision and the problems in the market more closely.

According to a Morgan Stanley report, “the market for Global Marketplace Lending may reach $290bn. by 2020, with an expected Compound Annual Growth Rate(CAGR) of 51% from 2014 to 2020.”

Image courtesy- Crowdvalley.com

The BTCCredit team is trying to showcase the potential of this market, in order to explain that their truly innovative peer-to-peer wallet solution holds great potential.

Fixing the Lending Market

Today the inflation-adjusted interest rate in different countries varies based on the available liquidity. In high liquidity market, Europe, interest rates are between 0.5–5 %, in Russia 12–15 %, in India 12% and in Brazil 32 %. This shows a clear inequality in the way access to the lending market is distributed across the world. We believe that this inequality between the borrowers should be flattened and huge market value can be created in the process, especially through opportunities of Arbitrage.

Banks charge 5–12% interest on loans and compensate you 0–1% for holding your assets with them. With the rise of cryptocurrencies and Blockchain, you can now become your own banking institution. BtcCredit makes this a reality for you. Not just this, you decide whom you want to lend your money to, on which interest rate, and in what mode. All of this is available thanks to Blockchain technology, on which the Wallet of BtcCredit relies on.

Traditional P2P-Lending

Traditional P2P lending is similar to institutional lending, where some measure of credit history and credit worthiness of the borrower is taken into account. The credit worthiness of the borrower decides the type of loan deal he/she is offered.

The method to calculate the risk/credit score is managed through proprietary algorithms/artificial intelligence. The differentiation is also maintained through how defaults are handled, and penalties are imposed.

Crypto P2P-Lending

There are some existing Crypto lending platforms which are following different business models. On one end they are a just like a traditional p2p lending platform with the ability to accept cryptocurrencies as collaterals. On the other end, they deploy the entire loan contract on the blockchain and execute events on the loan agreement through smart contracts.

Image source- Cryptalker

The blockchain technology, with its fully transparent and incorruptible transaction ledger, forms the ideal system for managing the loan with its parameters like tenure, interest rate, crypto collateral, etc.

There are many platforms that offer crypto lending:

Sofin Everex Ethlend Lendoit Btcpop

We hope to build a transparent and robust lending mechanism that could help people in their lives.

You can know more about us and our project by visiting

Website — btccredit.io

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