Bitcoin lending is a business opportunity that is not explored all that often by entrepreneurs and companies. It is rather difficult to established credibility when dealing with non-refundable cryptocurrency. A new Bitcoin lending application has been developed, and it is called Credible Friends. By going for the mobile-only approach, this service may attract the infamous millennials over time.
Credible Friends Offers Bitcoin Lending
Obtaining a loan through traditional means can be a painstaking process. Applying for the quotes, filling in all of the paperwork, and going through security checks can take days, if not weeks, in most cases. Moreover, there is zero guarantee of a positive outcome, which can leave declined applicants rather frustrated.
Bitcoin can solve a lot of these problems, and Credible Friends claims users can extend loans within two minutes. Application users will need to connect their social media accounts, and both a phone number and an email address will need to be entered. During the signup process, the wallet address for that user will be generated, including a 25-word recovery seed phrase.
The integration of social media capabilities will help users invite friends to the platform. Credible Friends is designed to let users extend Bitcoin loans to friends or family, rather than complete strangers. Using a built-in algorithm, the app will determine how much each friend is “allowed” to borrow. To spend the borrowed money, users can store it within the app, or link to a physical Visa card in the future.
Do keep in mind there is a fixed APR of 25% of revery loan. Paying back the loan can be done through a credit card, removing any barrier to entry for those who do not hold Bitcoin yet. The Credible Friends team will take a 40% cut of interest and fees, which results in 15% APR for lenders. Certainly an option worth considering for those who have the utmost trust in their friends and family.
After a successful US$100k crowdfunding campaign on BnkToTheFuture, Credible Friends is now working on bringing their application to iOS. The app can be downloaded from the Google Play Store by Android users already. At the time of publication, no timeline for the Apple app was provided to us.
Extending a Bitcoin loan is still a risky venture, and the decision should be weighed carefully. At the same time, peer-to-peer lending seems to be gaining momentum all over the world. With such a strong focus on mobile devices and connectivity all over the world, apps such as Credible Friends can help Bitcoin gain mainstream traction.