New potential feature

Hey Bitgold folks,

Something that i believe Bitgold can look into something to incorporate into it's system is a P2P loan system like a company called Silver Bullion has.

This company allows users to to loan users Gold/silver and then to determine fair value on interest rates upon the amount loaned out. For example a user loaning 5000$ for a period of either 2 years, 1 year,6 months or 1 month at an interest rate set by the market place.

A user is allows to borrow up to 50% or have a 2-1 margin on what is in their accounts at that moment in time to therefore allow them to have the necessary funds to repatriate the amount borrowed once the loan time-frame is fulfilled.

Loans can be uploaded onto a database where borrowers have the options to see the rates offered by lenders. However a borrower also has the ability to request on the database a rate and the amount of money and interest they'd like and if potential lenders would be willing to compromise and arrive to a mutual decision

Collateral on loans passed out can be up to 200% what was agreed to be loaned out by the receiver.

i think this should be something Bitgold team should definitely contemplate as something to do at a later date. The company definitely has a huge user base and something i and many others may be willing to accept!

Thoughts from everybody is appreciated!!!

Bitgold

Comments

  • GoldIsCurrencyGoldIsCurrency Posts: 1,782 Gold ✭✭✭✭✭
    edited June 2016
    @IWasNew Something of this nature has been thought about and could be in the works within the GoldMoney Management team. From my understanding what could happen is obtaining a loan against the gold you own. Your gold would be used as collateral for a loan. I don't think GoldMoney would ever be loaning the money, but maybe through a network a user could be matched up to interested parties who would be loaning the money at an interest rate based on knowing you own gold and they know your gold is safe in a Brinks Vault. Simply awesome collateral. Maybe the portion of gold you use as collateral would go into a "loan status" in your account. It is a very cool concept that would be extremely safe for the party loaning the money and beneficial to the BitGold account holder. A situation where you can have your cake and eat it too which doesn't happen often in life.

    It was discussed by Roy in one of the Video's. I would provide the link but can't remember which video it was. btw, I like your way of thinking @IWasNew B)

    I think we are going to see GoldMoney grow in so many useful directions. Very exciting times ahead for this company!

  • IWasNewIWasNew Posts: 16 Tin ✭
    @BigD GoldMoney does not have to be loaning i was thinking more Person to person transaction then they can have a transaction fee for facilitating the transaction between both parties. hopefully it would be reasonable fee like SB at 0.5%

    yeah you obtain a loan based upon your holdings at 50% what you have vaulted.

    yeah and because bitgold does comply with KYC laws to it would definitely help to verify who is who, where they live bla bla bla smoothing over the process.

    do you know if it was on one of their channels or someone else's? if not i'll surf around today to try and find it.

    Thanks :D

    most definitely and I'm more than glad to be apart of the process

    long live gold :) long live freedom
  • GoldIsCurrencyGoldIsCurrency Posts: 1,782 Gold ✭✭✭✭✭
    @IWasNew I found the video clip. It was one of the BNN interviews at about 2:38 into the video. Cheers.

    http://www.bnn.ca/Video/player.aspx?vid=854145#.VxkJMOoj2qo.linkedin
  • IWasNewIWasNew Posts: 16 Tin ✭
    @BigD Thanks much appreciated mate
  • PinkdogPinkdog Posts: 511 Silver ✭✭✭✭
    @IWasNew I love your idea. I was thinking about how Goldmoney could get into loans. P2P loans is a great concept that I believe many people would take advantage of. I know I would be happy to participate. Is it is backed by gold there is little risk to the lender. People could post the amount of money they want to loan and at what rate, the borrower simply picks the lowest rate available. @Melanie Let's start lending!
  • jmr5djmr5d Posts: 218 Bronze ✭✭✭
    Interesting idea, and there are a lot of different directions this could be taken in. It would be great if the system could provide a standardized contract execution method so that it would be publicly recorded, perhaps automatically enforceable, etc.
  • GoldmattersGoldmatters Posts: 3,937 Admin
    @jmr5d @Pinkdog @IWasNew @BigD I can't see why this won't happen. I say within a years time
  • jmr5djmr5d Posts: 218 Bronze ✭✭✭
    Sounds like Sebag thinks it will be in a year's time as well, according to that video. I was surprised when I heard him say that. Exciting stuff!
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    I wrote to management some time ago about my desire to make gold loans to my children and grandchildren through the platform and was assured that they were already working on these concepts.

    I can see where some of the social concepts behind the Credit Union Movement might be adopted to the GoldMoney movement. Sort of a pool of savers in gold working in mutual cooperation to the benefit of all.
  • NomidasNomidas Posts: 92 Copper ✭✭
    @IWasNew @BigD @jmr5d @GrandpaBrian @ArtMatters

    Gold is the quintessential valuable good to serve as collateral for Credit and thus for proper Money, and it is probably the valuable good with the longest continuous history as such a collateral. BitGold/GoldMoney/Goldmoney may very well become a core collateral for new kinds of 'privately' emitted (crypto)currencies and then it should have a loan function too!
    But such a credit and loan function should be STRICTLY separated from the so far predominant saving and value preserving features of Goldmoney!!
    The ascent of new goldbased currencies is already involuntarily effectuated by western governments and Central Banks. Cautiously adding Credit functionality to them is a further step to make such currencies fit for the use as investments and Capital.
  • GoldmattersGoldmatters Posts: 3,937 Admin
    @Nomidas It won't be considered credit if it's fully backed by gold wouldn't you agree?
  • NomidasNomidas Posts: 92 Copper ✭✭
    @ArtMatters

    No, I wouldn't agree at all! Originally Credit had been backed with a collateral of nearly the full value of the sum of the Credit.
    So it was with ALL Money of a currency when the real Gold Standard applied, that was just Full Reserve Banking, also the creation of the credit based Money Expansion by private Banks only came to its full extension in the last 100 years although there had been predecessors (usurers etc.).
    As I've said before: money is essentially transferable credit, the difference between 'good money' and 'bad money' is made by the quality of the respective collateral. Thus Gold backed Money is by definition 'good Money' due to the well known Features of Gold.
    Bringing the above stated together makes me think that Cryptocurrencies backed by real Assets will be the Money of the Future. Since the quality of the Money depends on the quality of its collateral, Gold backed Money will be of the Highest quality!!
  • NomidasNomidas Posts: 92 Copper ✭✭
    edited June 2016
    @ArtMatters

    Obviously one wouldn't need a particular Gold backed currency as long as one keeps his/her holdings in Gold and only changes that much into an official currency as one actually needs to buy and pay at any given time.
    With that procedure every existing currency would become a NEARLY Gold backed currency. Yet unfortunately only 'NEARLY' for the continuous manipulation of the real price of Gold by Comex and LBMA. In the end an explicitly Gold backed cryptocurrency would however be much more convenient and an easily to use way to perform all Financial tasks, so that it probably would displace most non Gold backed competitors.
  • ShadowsRevealedShadowsRevealed Posts: 83 Copper ✭✭
    +1 for GoldMoney P2P loaning. That would be excellent. Then we can be the bank and help each other out, another reason not to need the banks. For instance, you need $500 for an emergency flight home? No worries, I'll buy a few "notes" of your loan, then once your loan is full funded, you get the gold in your account, then transfer it to your card and bam! Your off and going. Sounds like a great thing to do. @Melanie do you know where we are with something like this? Also @ArtMatters and I spoke up in the conversation about a disaster relief emergency fund (at the time we were talking Venezuela), do you know where we stand on this also? Thank you :)
  • IWasNewIWasNew Posts: 16 Tin ✭
    edited June 2016
    sorry for tthe late reply guys been away on holiday!!

    yeah a p2p platform is what will definately decrease the leverage of these banks over us as they cannot make loans to us and be the middle men between us all as we are now able to take advantage of he interest rate and the fact everyone is helping everyone.

    plus in the not too distant future anyways banks will not be what they once were!!! antiquated at most and most likely just used for KYC policies at best!!!

    long live the revolution. long live freedom
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