Portfolio result: BTCPOP (Nov 2015)

This time I will write in an unusual way. I start with disclosure of my results and only in next posts I will share recommendations and comments about the lending platform.

Why it is so? First, BTCPOP is more than bitcoin based p2p lending platform. BTCPOP has much wider functionality. I need more time to finalize my personal opinion about that extended features. At the same time BTCPOP have number of places that requires a bit more attention or bug fixing. Developers& Owners of the Platform have excellent communication with users, therefore I think many areas will be improved before I will write my next article.

IMPORTANT NOTE:  With BTCPOP I have tested my “risky” strategy. During investments I have commented many times  – “do not follow me”. Therefore described result cannot be treated as result of  a ‘normal’ investor.  I am changing my ‘risk’ appetite and I take current result as start point when there is no possibility to go lower. 

I did my first small deposit to BTCPOP in June 2015. Together with reinvestment I have invested over 70BTC. Platform is telling me
2015 11 22 Btcpop 1

My own calculation gives me -37.31% XIRR (drop from last month -12%). I repeat  most probably this return is far from average return of average investor (even we do not know statistics of the platform).

2015 11 22 Btcpop 2

To calculate XIRR  I assume that loans will be repaid in 270 days (calculation date = today()+270). I download manually all loans, and I count future payments from overdue borrower as Late. I remove 75% of late/overdue value when I count Value of portfolio. At BTCPOP I have a bit of shares and small investment into “pool”. I will publish their value to be able to track changes.

How I got so bad result.

First and most expensive mistake – broken diversification. I have invested in big number of loans, but several defaulted loans got from me much more than average amount. I invested over 5BTC in Kyle Inkman loans, I invested over 1.5 BTC into few other borrowers. 64% of my overdue belong to such ‘big investments’. The only positive thin that all mentioned borrowers were A rated and their loans are insured 50%.

Second mistake I broken rule “do not take personal” and “do not invest based on emotions”. I did quite a lot of small investments into people telling some sad stories.

Third, in some cases I was too greedy, investing into small loans offering 5-10% in week or two. We all must understand, that if borrower asking loan for 1 week for 5%, in fact he will need to repay 8- 10% interest (together with initiation fee). That is a lot.

All that was my own mistakes, not platform’s.

Investors must be carefull with “Locked in POP” loans. I have one case where I have invested almost 1BTC into “Locked” loan, borrower late, his verification is most probably fake and BTCPOP not repaid me locked amount.

So. I plan to stop so risky investing and improve my results. I plan to invest more and I hope that beginning of December I will be able to show you improved ROI.

Wish you all nice investing!

p.s. If you never tried, but interested to look at this platform, please there (includes my referral link). You will need to decide yourself about all related risks.


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