Why a company like Btcpop makes bitcoin better
The essence of Bitcoin is really rooted in the P2P movement. Individuals using technology to cut out the middleman and interact directly with each other increasing efficiency and making both parties better off.I’m sure you're thinking, how could Btcpop possibly make Bitcoin (the currency it banks in) better? The answer is that it encourages Bitcoins use as a currency as opposed to a hoarding tool or speculative asset.
Using Bitcoin as a Currency
In the Bitcoin ecosystem, there are a lot of buy and hold long term investors (hoarders), as well as get rich quick pump and dump speculators. I can easily see both points of view. Hoarders see Bitcoin’s finite scarcity and tremendous potential as the buy and hold asset of a lifetime (which in my opinion it is). Speculators, on the other hand, see the get rich quick potential of an early world-changing innovation and want to exploit the volatility as the market determines the price on this brand new asset.
Don’t get me wrong there are the daily users, people who promote it, coffee shops that accept it, and a giant ecosystem of general users. However, in my opinion, these users don’t yet make up a large enough portion of the ecosystem. As such, even though it has improved
dramatically over the years, Bitcoin is still prone to violent price swings as the price heads steadily to the moon. This volatility brings in more speculators, but is harmful for adoption from general users and hoarders. For slow constant growth, Bitcoin needs more "Bitcoin for coffee" transactions.
Moving Hoarders and Speculators to the middle of the spectrum
Early on as I was hoarding my Bitcoin, I had the realization that if everyone did what I was doing, it might actually harm the Cryptocurrency economy and Bitcoin. As a lover of freedom and huge fan of the blockchain innovation, it pained me to think that I was actually hurting the ecosystem by decreasing the velocity of money, and really not encouraging Bitcoin’s use as a currency or adoption in general.
As I thought about it more, the only way I could really justify spending my precious Bitcoin, was if I was able to receive it back with interest. This way my Bitcoin gets to be free and used as capital out in the Bitcoin economy, and I get to increase my hoardings with interest. As I looked into it further, I found the P2P lending industry. It was full of potential businesses and scams all dedicated to earning interest on your Bitcoin.
Btcpop P2P Bank that brings hoarders, users, and speculators together
I found Btcpop after learning P2P the hard way on Btcjam and other sites. At the time I found it, it was a tight-knit community of people with the simple mission to make P2P lending better. And, after 2.5 years of, let's call it exciting, growth and drama getting things sorted out, I’ve started to confidently part ways with my hoarded Bitcoin and set it free to be a productive currency. The reason I am able to do this is the innovate collateral loans that Btcpop allows.
Collateral Loans- bringing collateral to the internet
While I'm sure it has been done before in some way, I personally cannot think of another situation where you can borrow using collateral on the internet. If even the riskiest borrower puts enough collateral on the line, the risk of that investment can decrease to levels that hoarders like me find comfortable and are willing to invest in.
Tools for Speculators that allow for Bitcoin investing to be safe
An interesting dynamic I picked up on right away at Btcpop is how speculative high risk investments (otherwise known as Altcoins) were actually made into a tool to make it safe for a hoarder like me to release my Bitcoins into the wild.
Altcoins are the natural drug of choice for speculators. While my portfolio includes the risky little buggers (diversification is risk adverse), I do my best to refrain from the temptations of day trading and the occasional glance a the troll box on Poloniex. Rarely do I go on Poloniex and see a boring spread of coin movements and volatility. More often than not, there are double digit 24 hr gains and losses in the Altcoin market and the troll box is howling about the next pump or crash on whatever the altcoin flavor of the day is.
Btcpop has a built in exchange housing 100+ Of the risky buggers. And while the volume is still low, I’ve been able to purchase and sell a few long term plays on the altcoins I hold there for a competitive price.
Shares and IPO’s are the next speculator indulgence at Btcpop. Btcpop.co itself has a significant amount of stake broken up into shares and traded on its own share market. IPO’s at Btcpop are exactly as they sound, initial public offering of business equity or revenue sharing on the Btcpop share exchange. Individuals list their proposal, similar to a P2P loan, stating their intent with the funds, dividend strategy, references, and a stake of their reputation. While not stated directly, reputation plays the most important role in listing an IPO for an idea or company (which it should). Btcpop has done a lot to improve the online identity dilemma in P2P lending which causes such high default rates. But its always best to remain cautious as an investor and very thoroughly vet each borrower.
Using Altcoins and Shares as Collateral
So the end way that Btcpop encourages hoarder to part with their Bitcoin is allowing them to invest in collateralized Bitcoin loans. The collateral borrowers can offer up is altcoins and shares. So even though I think Dogecoin is a stupid coin, if a borrower offers up a loan staking his reputation with 300% of the loan value worth of Dogecoin in collateral, I will probably invest. With enough collateral (even if it is Dogecoin) the risk/reward ratio of these loans can become very profitable relative to the overall risk.
A Healthy Economy
So while there will always be hoarders and speculators. Places like Btcpop can help bring these types together and encourage Bitcoins use as a currency. Speculators now have a tool to gain affordable leverage on their capital to further increase their returns. And the Bitcoin that hoarders like me would usually keep locked away behind 5 security measures, is now free to purchase goods and services and provide liquidity to user market. At the end of the day, I get my precious Bitcoin back with interest, as well as the satisfaction that I am supporting the cryptocurrency economy.