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What is Bitcoin lending?

Bitcoin lending is quite similar to the universal investing. Although, funding bitcoin loans has some features not share properly by other assets classes. In this article, we will read about principles of lending bitcoins and beginners guide to bitcoin.

Diversification:

The first and foremost cited principle of the investing is diversification. Here, mathematical details will show its effect very confidently. But we want to give you information that you can easily understand or digest. And, there is no need to study heavy statistics, you can easily apply as a lender on Bitbond.

Diversification in finance is allocating process of the finance. where the exposure will be reduced to one particle, whether it is a risk or asset. A simple way toward distribution is to decrease the percentage of the risk by investing in the verity of the assets. So, finance diversification means you are placing small bets instead of big ones. As a result of this strategy, you’ll get the decent yield. Whereas, in a case of a big bet, chances of potential return and potential loss are equal.

Bitcoin lending yield is approximately 10 p.a. in bitcoin loan’s portfolio. So, how you will diversify,

Amount per loan:

Accordingly, per loan minimum invest is 0.01 BTC, currently a small amount. This small amount is kept by us on purpose. In addition, with 1 bitcoin you have the option to build 100 loans portfolio. Here, we recommend you, not to invest too much into one loan. Two basic rules are as follows;

  • If it is a small amount loan of 0.1 BTC, don’t place more than 0.02 BTC into loan means to put 20% or less than requested loan amount.
  • If you are lending 2 bitcoins then do not put more than 0.1 BTC (2 X 5% = 0.1), means loan comprises only 5% or less of your portfolio.

Geography:

Diversify other aspects of your loan is another good feature. It is very imperturbable that bitcoin lending is listings to the country to country. As the economic environment varies from country to country. A country might be in recession period while other may a part of a dynamic economic activity. Accordingly, time gets changed and creates the impact on the economy as well. Therefore, this makes sense that loan portfolio is directly affected geographically.

Bitcoin lending is quite new in this technology era. So, that all the technology seeker countries are not listed here, listing process is in a process as well. As opportunities are growing on the daily basis, we suggested you a portfolio where a countries’ makeups are at 30% or less of entire portfolio value.

Duration:

Commonly, Loan with long duration has high default profitability mostly. Its depend on your luck because long durations are always uncertain. It may bring high-interest rate or default loss. Moreover, Bitbond has term bitcoin 6 weeks and 5 years.

If you have short term loans you need more effort to manage your portfolio. Holding different loan investment tending directly toward that your capital is not concentrated to one definite term. Your flexibility lies only in a term when your basis of long-dated loan whereas, other are shorter dating ones. If you are not ready for immediate liquidity than you need to re-invest cash again.

Rating Category:

Rating categories have the list of different risks. Higher interest tends toward higher risk. Therefore, an average return will be in the same range. You just have the option of 20% for each rating category (A to E).

Keep the concentration category below 40% in one rating category. This may consist of valued instead of loans.

Loan Terms:

Two things will happen on loan default.

  • The lender will receive the identity details and take the action by his or her own. And, Bitbond will free to sell the claim to this loan to debt collection agency.
  • Recovery amount will be higher because debit agencies will collect the amount instead of individuals.

Small amount loans are difficult to collect. But the one thing is most important, a small amount is not small in front of the world. Purchasing power varies from country to country. In addition, loan of 0.8 BTC may be small in Switzerland whereas, may have worth in Chile.

We mention here to invest in loan up to 0.1 BTC or more in established world. Whereas, in emerging markets, this amount is up to 0.5 BTC or more. You are free to check the details of the borrower from a country flag.

Meanwhile, diversification principle is to make small invest loans.

Purpose of The Loan

You need to check the description and notice what the borrower needs the bitcoin for. Each borrower has the option to write 1000 characters. Grammar, spelling might not be perfect always but the main thing is the purpose of borrowing bitcoins. Be thoughtful, if there are just a couple of words and borrower do not mention the main reason or purpose.

Affordability:

Bitcoin lending is new in the technology market and a number of things are still in working. If you follow the bitcoin lending principle properly, asset class will deliver the return of 10% p.a.

But we recommend you to invest bitcoin you can afford to lose. Furthermore, With the passage of time, you’ll come to know, how to invest and you can plan your strategy easily. Because this technology system is unpredictable.

Loan Portfolio:

Keep check of your results on daily basis. In addition, collect the pattern performance and apply them in future investments. Meanwhile, on statistics page, you have the option to download the entire history.

Goodluck!

 

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ICO Promotion by John McAfee – How much will it cost?

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Do you know how much it cost to get a crypto influencer for your ICO promotion on social media platforms? Here’s the surprising answer!

ICO (Initial Coin Offering) operators don’t really like to disclose the amount they are spending on marketing, although promoters usually prefer to delay discussions related to prices ’til after they’ve had the chance to make a sales pitch as précised figures are hardly discussed in public. However, John McAfee (cybersecurity pioneer) has spent all his life resisting convention, and now he is operating an ICO marketing service, McAfee Crypto Team.

ico marketing service

Company’s Official Statement

According to the official site of the company, McAfee Crypto team is a full-service ICO promoter as it offers:

  • Whitepaper support
  • Web optimization
  • Marketing
  • Strategic advice

The cost for many of the services is not listed; however, clients will have to pay $105,000 to get McAfee tweet about their ICO, which will be sent to its 811,000 followers, at least few of them will be probably bots.

According to the website:

“John McAfee’s tweets are by far the most influential in the field of cryptocurrency. Few leaders in the Crypto community can come close to Mr McAfee’s reach into the heart of the cryptocurrency investor community.”

Dubious Claims by McAfee Crypto Team

Furthermore, the website makes suspicious claim that this is one of the most inexpensive ways of marketing a cryptocurrency project. The site also claims:

“Given Mr McAfee’s price of $105,000 per tweet, the cost per investor reached is the least costly of any marketing avenue in the Crypto world. Considering only his own followers, the cost per investor reached is $0.13. Considering his reach beyond his own followers, the cost per investor reached is frequently less than a penny. This is orders of magnitude less than any other approach.”

Even with the heavy price tag, the company still claims that so many projects are showing their interest that now the company has to establish a $750 registration fee to stop staff from being dazed with applications. While responding to opponents, McAfee refused to accept that he has sold out and stated:

“They say I sold out ’cause I use my tweets to promote, but the last 200 ICOs that lined up, we rejected 195 and chose 5.”

He added, he promotes only those projects that he believes in as he tweeted:

“I only promote what I believe.”

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Bitcoin Mining Calculator 2017 – Interesting Information About Mining Calculator

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Easy bitcoin mining calculator

It’s really simple to use a Bitcoin mining calculator. There are only two main instructions that you need to follow:

  1. Enter the hash rate
  2. Click to mining revenue

Do these and you will have your desired calculations with an accurate result while using a Bitcoin calculator. However, there is one important thing to remember while performing calculations: The revenue will be in USD, based on current exchange rate. The exchange rate varies from time to time and so does the revenue difficulty.

Some other points to remember are:

You Have to Calculate Profitability:

Bitcoin mining has secured the bitcoin world. Without miners, you would not be able to do any transaction happily. In that sense, miners pay for their services and mine the blocks. If miner successfully mined a block, there is a reward on each block in the form of Bitcoin.

Easily run a profitable mining farm.

Mining Hardware:

While going to purchase bitcoin mining hardware you must look the at metrics called hash rate. If a hash rate is high, it means your miner is more powerful. To calculate the amount of hash power per month, you can use the mining calculator. However, it may be costly for a new mining farm.

Just like you want to earn more, the hardware will become more expensive. Antminer S7 mines $200 bitcoins per month and costs $629. And this is just the hardware cost. The costs of electricity and equipment are not included.

For profitable mining operation with low W/GH with good hash, power is the better option for your profitability. Antminer S7 is also considered the most efficient miner with 0.25 W/GH.

During the mining process, the miners emit large amounts of heat, so you will need cooling fans and power supplies to keep the temperature under control.

Other Expenses:

Mining operation completely depends on electricity. 60% of Bitcoin network’s hashing power is located in China because of cheap electricity.

Miners in cold areas are more profitable because there is no extra need for cooling fans. It removes the heating cost and keeps the houses warm during winter.

Hash Power and Difficulties:

It is difficult to know about the difficulty months in advance. Network and hash power are external factors and vary from time to time.

Instead of stressing out, concentrate and give complete attention to understanding the more efficient idea of mining technology and the hash rate.

Block Reward and Price:

Bitcoin price is a factor you can’t control. Price fluctuation is important so keep yourself up to date and prepared for these fluctuations.

On the other hand, the reward is a predictable factor. It started from 50 bitcoins per block, then 25 BTC per block, and in July 2016, it was halved to 12.5 bitcoins per block. The reward takes place every four years. This means the halving will be taking place in 2020.

Calculators:

Use of bitcoin profit calculator keeps you updated with hardware and electricity costs. This will give you the better idea how to decrease the possibilities of mining difficulty and Bitcoin price.

Wishing you good luck!

 

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Is 2018 Year Of The Exit For Cryptocurrency Hedge Funds?

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Before we come to the point, and talk about the cryptocurrency hedge fund let’s know what actually a hedge fund is:

“It refers to an offshore investment fund, that attracts investment in stocks, property, or other such ventures using credit or borrowed assets. A hedge fund is usually based on a private limited partnership.”

cryptocurrency hedge fund

How did it all start?

The use of hedge funds witnessed a dramatic growth since the start of the 21st century. A hedge fund is usually a basic term used for an investment which is totally partnership based. It is a kind of agreement between two people, one might be a fund organizer or a sort of manager with vast experience, and the other one is an investor investors who acts as a limited partners. These two people pool their expertise and money respectively to form a hedge fund.

The basic purpose of a hedge fund is to purpose is to boost up the investor’s returns and get rid of all sorts of risks involved in the financial venture. Usually hedging tactics are utilized to reduce risk. Since many private hedge fund companies are closely tied to the founder personally, there is always a question about these funds that either they have a market capitalization or not?

What is a Cryptocurrency Hedge Fund?

With the passage of time cryptocurrency has become a popular mode of payment over many online platforms around the globe. It could not even escape the attention of hedge fund managers, Although many financial experts were too slow to recognize cryptocurrencies as a trustworthy area of investment, some hedge fund managers did not miss the chance from making moves in the crypto world. As the interest of investors increased, the launch of crypto based hedge funds also climbed up. The number of cryptocurrency or blockchain based hedge funds swa a continuous increase over the course of 2017.

The year of Exit for Hedge Funds

No doubt the cryptocurrency based hedge funds witnessed a continuous rise during the year 2017, but unfortunately the case is not so in 2018. According to many financial experts it may prove to be the year of exit for that kind of hedge funds. As a proof to that at least nine cryptocurrency based hedge funds have been closed down in the first three months of 2018 which is not an ordinary incident. All this was revealed in a report published by Bloomberg.

 

Crowd Crypto Fund and Alpha Protocol are at the top of this list. Crowd Crypto Fund closed down all of its platforms. Alpha Protocol on the other hand simply announced a refund to its investors which was completed on March 31.

 

But the valid point behind all that discussion is that cryptocurrency based hedge funds are not the only funds that met this fate, the traditional hedge funds which were more firmly established during the past few years also witnessed a visible decrease in interest from investors.

 

Do not forget to comment in the specified section below about this down fall of cryptocurrency based hedge funds.

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3 Reasons To Invest and 3 Reasons Not To invest in Bitcoin

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Owning Bitcoin is the new cool! Those who own Bitcoin have 125% more chance of stealing your girl! Had you bought Bitcoin a couple years ago, you’d be a millionaire by now! This and many other things you’ll get to hear during a Bitcoin discussion. Despite all its cool features, Bitcoin is not a currency that comes from heaven and has its pros and cons.

In this post, we are going to discuss three reasons to buy and three reasons not buy Bitcoin investment.

Get, set, go!

3 Reasons To Buy Bitcoin:

Increased Attention From Major Investors:

Ever since Bitcoin was created, its biggest boosters have been computer geeks. However, the trend is starting to shift as the major investors and financial industry has turned its eye to Bitcoin. A growing number of investors and entrepreneurs have recently joined Bitcoin as they consider it a legitimate asset class such as commodities, bonds, and stocks.

The Number Of Bitcoins Is Limited:

Bitcoin is limited. Yes, it is not your traditional currency which exists in billions or trillions – it’s limited in nature and only 21 million of it will ever come into this world. This is the very reason why Bitcoin is so valuable and has a single BTC being traded at $3456.00 at the time of writing. To your surprise, it’s expected to go even higher.

Some Term Bitcoin As The New Gold:

Those who own and invest in gold do so because it’s an asset whose price is not determined by government. Regardless of the fact that a country is ravaged by war or its improvident national bank keeps on printing excessive cash, the value of gold will remain. Bitcoin has a whole lot of similar qualities. It exists on a decentralized computer network that rises above national fringes, and there is no Federal Reserve-like authority that can downgrade it.

3 Reasons Not Buy Bitcoin:

Core Users Of Bitcoin Are Still Fringe Figures:

Because of obstacles like high transaction fees, slow transaction confirmation, and restrictions on payments through credit/debit cards, Bitcoin’s primary use remains what it has always been: buying drugs and other illicit activities.

The ordinary consumer is still not using it as a payment method, and this is the main reason why Bitcoin is far too less useful than gold in the real world.

Bitcoin Is Highly Volatile:

Bitcoin is highly volatile and has experienced some spectacular crashes over the years. In 2013, for instance, the currency went on to hit $1100 only to fall back to $700 a few months later, and then to $200 in 2015.

While Bitcoin is currently over $3000/BTC, there is no guarantee that it won’t tumble back t0 $2000 or below.

Bitcoin Only Exists On Computers:

This may sound obvious but, Bitcoin is the most intangible form of money in the history of money. It’s basically just a piece of code stored somewhere on the internet and there is no authority in the world you can ask to honor it.

 

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Top 5 Advantages Of Bitcoins That You Didn’t Know

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Bitcoin is a digital currency that first came into circulation in 2009. The identity of the creator is still disclosed.

In recent years, Bitcoin has attracted interest from numerous people of different lines of work, but there is still a large portion of the public that still doesn’t know what is Bitcoin and how does it work. Simply stated, Bitcoin is a peer to peer, decentralized, digital currency system, designed to enable online users to make transactions via the digital currency. In other words, it’s a virtual currency.

Let’s take a look at some of the advantages of using this currency.

What Are The Benefits Of Bitcoins:

  • Its Tax Free:

When a user buys something using euros, pounds, dollars or any other type of flat currency, he is supposed to pay some additional sums in taxes. Every item that is purchased via cash has a certain amount of tax on it.

On the other hand, Bitcoin is tax-free. No sales taxes are involved when you pay with bitcoin in transactions made.

The zero taxation makes Bitcoin an extremely useful form of currency, especially when it comes to buying luxury items.

  • There Are Minimal Transaction Fees:

Exchange costs/fees are part of all sorts of wire transfers. On the other hand, no such costs come with Bitcoin transactions. Since there is no monitoring bank or governing authority to keep the flow of bitcoins in order, the transaction costs are extremely low, or even zero in some cases.

  • Flexible To Pay:

The fact that Bitcoin payment system is online makes it extremely handy for the users to make transactions. All you have to do is tap your smartphone screen a few times or do some clicks on your PC to transfer the coins.

The flexibility in payment methods means you can make the worldwide transaction without even having to leave your bed. Amazing! Isn’t it?

Read our guide to learn more about Bitcoin payments.

  • User Anonymity:

Bitcoin transactions are distinct and give you complete user anonymity. Every purchase made through bitcoins is never connected to you and there is no way for it to be tracked back to you. However, if a user is willing to reveal his identity, he does have the option of to publish his transactions – but in most cases, the users prefer to stay anonymous.

  • Lastly, The Currency Is Free from Third Party Influence:

One of the biggest advantages of using Bitcoin value is that it eliminates third-party influence. There is no central bank or a government authority controlling the flow of bitcoins, which ultimately eliminates the chances of your transaction being disrupted.

Bitcoin transactions are based on peer to peer system and it allows the users more freedom and greater liberty to make a purchase.

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