Bitcoinist.net sat down with a Q&A of Jan Heinicke-Clemm of Genesis Mining and BitLendingClub CEO Kiril Gantchev, to discuss their new partnership.
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What is BitlendingClub?
BitLendingClub is an international peer-to-peer crowd lending platform. The platform allows borrowers from all over the world to request a Bitcoin loan. Lenders compete to offer the lowest possible interest rate for the loan and once the lenders have invested enough BTC to fund 100% of the loan, then the borrower can reject or accept the loan offer. By allowing the lenders to compete to offer a lower interest rate, BitLendingClub allows for the discovery of the most competitive interest rate which the fee market can offer.
Who is BitLendingClub’s end user?
BitLendingClub, or BLC for short, has two groups of end users: investors and borrowers. Borrowers can’t find funding through the conventional banking system for loans related to Bitcoin, the banks simply won’t fund them. On the other hand, investors have spare bitcoins on which they would love to earn some interest. Who better to understand the needs of the borrowers than other people who have Bitcoin? BLC is the social glue which binds the borrowers and the lenders!
Why partner with BitLendingClub?
Partnering with BitLendingClub enables us to reach a customer base that is currently unavailable for us. This cooperation provides a solution to people who are in need of a loan to make an investment. By borrowing the necessary funds via BitLendingClub they can sign up for Genesis Mining contracts, and start mining immediately. This is a whole new, more secure type of loan in the digital world!
Can you tell me how this partnership came about?
We have met at the Amsterdam Bitcoin conference and we immediately saw a great potential in partnering. We believe in it because it will be beneficial for both of the companies as well as for their respective customers.
How will BitLendingClub benefit from the partnership?
By partnering with GenesisMining, BitLendingClub is able to almost eliminate the risk of default for hosted-mining related loans. BLC will be able to offer the lenders a vertical of loans which is substantially more secure than the unsecured loans which are currently on the platform. This will undoubtedly attract more lenders to the platform, which is expected to provide even more competitive interest rates. This will also offer a much lower interest rate for people looking to take out loans for hosted mining.
How will Genesis-Mining benefit from this partnership?
Every customer who is already convinced of the concept of cloudmining and would like to start or extend their service, can now do so without having the necessary funds at hand. They can start or expand their contracts on debit. To put it another way: BitLendingClub builds a bridge between us and our potential clients.
What is your vision going forward with the partnership between BitLendingClub and Genesis-Mining?
The partnership between GenesisMining and BitLendingClub is the first step to providing smart loans using the block-chain technology, it’s a monumental step in the history of crypto-currencies! By combining forces, BitLendingClub and Genesis mining have managed to create a brand new type of loan which nearly eliminates the risk of default due to borrower error. We’re hoping that our partnership will eventually allow us to integrate smart loans into the block-chain in a way that has never been done before!
