BTCJAM: Very short about bad loans in my portfolio. Aug2016


very short post this time.

This post born because of two reasons. First, I see quite often posts about how bad is BtcJam and how “all loans there goes to default”. I even got a PM from strange teenager from Alaska, who told that ‘9 of 10 his loans went to default and more than 90% of people are losing money’. May be he had (have) bad luck, may be some personal issue, so I decided to check if it is really so bad. Second, I was very interested how my strategy correlates with changes in loan origination process at BtcJam.

So, I did extract of all my loans, and did small graph to see how many loans where I invested went to problems. “Problems” there means defaulted or late. Of course, same of late loans will recover or will be bought by JAM collection services.

Below is that graph.  Graph demonstrates percentage of bad loans from all where I have invested. As example, in March 2015 I invested into 302 unique loans and 37 went into problems (12.5%).

16 08 bad_loans
I have learned from fiat p2p that big number of defaulted loans on high interest market may be still profitable.  20-30% level of overdue/defaulted loans is quite ok and even with 50% of defaulted loans investments could be profitable. But, sure, now I got a task f to find, how to make my strategy better, especially for cases when level of defaulted loans is close or bigger than 40%.

I am definitely not the best investor and have not done any special analize when selected my investments strategy. I am sure that some investors at JAM who did good analize of data, may have level of problematic loans below 25%. And sure, it is definitely not truth to say that all investors are getting loses.


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