My Attempt At Being More Active In The Bitconomy And Making A Bitcoin Profit At It

Saving Bitcoins and just sitting on them is actually taking part in the Bitcoin economy; but there are definitely ways to be more active. In my last post I talked about how I would either sell half of my Bitcoin or loan it out. Considering the recent upswing in price I decided not to cash out the dollar value of my Bitcoin and see if I could invest or loan my Bitcoin and end up with more.

While searching among the interwebs for ways to invest Bitcoin I found a couple of sites where one can buy stock in companies that are involved in the Bitconomy. Most of the value of those stocks seems to come from the fact that they pay Bitcoin dividends. Those sites are btct.co , mpex.co/, cryptostocks.com, and picostocks.com/ . What really got me interested in Bitcoin investments was the Bitcoin lending website btcjam.com. I lent out half of my Bitcoin out at 4.5% interest a month for 2 months. That is a phenomenal rate of return.

The lending terms are fairly straight forward and the potential returns are tantalizing. An average return is any where from 2 percent to 8 percent a month; but the caveat is that there is a high chance of default. The last default rate on btcjam that I saw was about 30 percent of the loans made. The borrower’s credit history on the website can be viewed by potential lenders. I lent half of my Bitcoin out to BTC Quick a company that enables people to easily buy Bitcoins with a credit card. This borrower had their website up as well as a phone number. I contacted them and talked a bit with someone from the company. I also looked at their borrowing history and it is perfect.

I think that a lender on Btcjam who applies a little rigor and good judgement on Btcjam can make a very nice return with out too much worry.

Cha Ching and until next week (hopefully),

Alex