German Startup Leveraging Crypto Craze
The idea of crowdfunding and peer-to-peer lending isn’t new. There are many crowdfunding platforms offering P2P lending. So what makes Bitbond special?
The company utilizes blockchain technology to make investments more profitable and loans easier to obtain. Investors can support businesses from all over the world, while knowing exactly where their funds are going. Plus, they can support projects that they are personally interested in.
Peer-to-peer bitcoin lending gives lenders an easy access to profitable interest rates ranging from 10% to 35%. The platform also offers AutoInvest tool which help funders diversify their portfolio based on their preferences. Additionally, small business owners are able to finance their ideas quickly and without additional fees.
But Why Using Blockchain?
Bitbond uses a blockchain payment network in order to facilitate international transactions. The SWIFT network is a more expensive alternative which is tied to the traditional fiat system issued by the government. The blockchain network, on the other hand, allows the users of Bitbond to get around the traditional system allowing to make investments and take loans at lower costs.
Thanks to blockchain technology, Bitbond services are available internationally and independent of banks. For example, an investor in Germany using Bitbond can invest in eBay seller living in India. Moreover, borrowers get small business loans quickly and in an uncomplicated way. The loans can have a duration from 6 weeks to 5 years.
How it Works
To be eligible for funding, the loan request is published in the Bitbond marketplace where lenders can place bids during an auction. The loan request is released in the marketplace for up to 14 days. Once it exceeds 60% of the target amount, the lending period starts. The minimum loan amount is 0.01 BTC and every borrower can have only one ongoing loan.
Bitbond utilizes bitcoin as a technology and payment network to create a global market for small business loans. This allows small business owners in developing countries to pursue their innovations and get funding with low interest in a timely manner. Bitbond was founded in 2013 by the CEO Radoslav Albrecht.