What are some of the frustrations involved in cryptocurrency lending besides the risk of fraud? It may be that you have trouble finding a lending platform that will operate in your country due to unreasonable regulations.
Let’s face it; the government will always want what it perceives as its cut and that’s what the debate over regulating cryptocurrencies and related platforms is really about. Platforms like ETHLend could solve that problem by creating fully decentralized peer-to-peer lending networks.
ETHLend has already concluded its token sale, but the token has recently made a 24-hour jump in value of over 50%. As the name implies, you can borrow and lend ETH over its network. The lending volume is good, with 300 ETH being loaned in a 2-week period.
Good Workaround for the Unbanked and Citizens of Countries With Unreasonable Regulation
It’s hard to get a loan when you don’t have easy access to banking services. Fact of life. Recently I saw someone filling out a Western Union form and I thought she could have done the same job with Litecoin or DASH if she had known about them and the recipient knew where to spend cryptocurrencies. Maybe the recipient would have to walk for two days to get to the nearest bank to receive the money. If the recipient has to do that, then it may also be too much trouble to go to a bank for a loan.
With a platform like ETHLend, people can loan or borrow money without having a bank sitting in the middle of the transaction. You don’t have to trust your bank to make all the right calls and, FDIC or not, you don’t have to put up with the worry of what would happen if the bank goes under because it took too many unwarranted risks with your money.
You decide what risk level you are comfortable taking when you can decide who to make loans too, and you can usually get a better interest rate on your money, too. Just keep one eye over your shoulder if you are in a public place so we don’t have a repeat of what happened to Ross Ulbricht and don’t carry anything that’s “mission critical” if you are traveling and there’s a reasonable chance that your devices might be handled by the authorities.
Of course, this does invite jokes like, “The first rule of cryptocurrency investment is you never talk about your cryptocurrency-related investments.”As long as you are sufficiently discreet and take all possible security precautions, neither government authorities nor the platform developers can stop you from using ETHLend.
This is coming from somebody who got her BTCJam account suspended purely because BTCJam suspended operations in the United States due to unrealistic regulations, folks. Of course a decentralized platform that’s hard to shut down on is going to be attractive to people who have this problem.
ETHLend Is Officially In Alpha
Basically, this just means that the dapp is on the Ethereum Mainnet but may have a few minor bugs. Just don’t let that intimidate you if you want to see what this cool dapp that can give regulators the runaround with a little caution by users looks like – the flip side of that being that due diligence is a good thing when deciding who to give loans to. (Economic freedom does have its downside, but can be worth it if you don’t want the banks and the Fed dictating what you can and can’t do with your money.)
It does look rather pared-down if you are interested in lending something other than ETH or might feel more comfortable asking for collateral, but the developer team does plan to fix that. The roadmap indicate that the ETHLend team intends to enable short selling and lending other cryptocurrencies and tokens in late 2018, and enable enhanced features like sophisticated collateral control by the middle of 2019.
So invest in the ETHLend token or invest in the loan listings on its platform or do both. A 50% jump in the value of its token and 300 ETH in loans in two weeks are kind of hard to ignore if you’ve been interested in getting into the peer-to-peer lending market but haven’t been sure where to start because it’s tough to find a platform that will operate in your country. As an added feel-good bonus, you might be helping members of the unbanked population become more self-sufficient while doing an end run around the banks and the regulators.
Thanks for reading!