Performance Reporting is Here

We’re excited to announce the addition of performance reporting – an evolution of the investments page.  This enables investors to easily view the results of investments at anytime.  Additionally, investors can see the performance of their AutoInvest portfolio versus individually selected loans.

Investors can see how their accounts are performing through the following components: Net Annualized Return (NAR)

  • Net Annualized Return (NAR)
  • Account Value
  • Interest received with a payments summary
  • Portfolio Risk Score

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NET ANNUALIZED RETURN (NAR)

The first set of information you will notice is net annualized return (NAR) which is a measurement of the performance of your total investment on BTCjam. It reflects the payments actually received each month.

The returns are calculated by simply projecting all the current loans as fully repaid and all late loans as defaulted. The annualization assumes that all your capital will be reinvested in similar loans.

NAR can be expressed as this formula, for any period from month 1 to month N, where “i” is the recurring monthly period:
NAR

For note trading, the amount you pay for a note is added as principal invested. All the payments you get from a note are fully added to your returns.

You can see the chart with the breakdown by listing grade you invested in (from A to D) and also how your AutoInvest plans are performing against the average NAR of other investor’s AutoInvest plans.

NAR is calculated dynamically taking into account all information available at the time. This only reflects your return starting with funds invested on or after April 1st, 2014, as this is when BTCjam started using this calculation.

ACCOUNT VALUE

Account Value

Account Value offers a great way to see your total account value and it’s segmented by what is available cash in bitcoin (converted to your display currency), accrued Interest, in funding investments, and outstanding principal.

INTEREST RECEIVED

Interest received is segmented by score group where the allocation percentage to the left is based on the total amount received.

Interest Received Investor Page

Your payments summary shows the total amount you have received in payments. It is a sum of payments to date, principal received, interest received, and late fees received.

PORTFOLIO RISK SCORE

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Portfolio risk is based upon the number of investments you have made along with the consistency of amounts in each loan. The risk range is expressed as Low, Moderate, or High. The lower the risk is, the higher the probability of the portfolio achieving the expected NAR¹.

To reduce risk, diversify your portfolio by investing the exact amount on each loan you want to participate in². The best way to do that is through an AutoInvest plan: set the parameters and let our system automatically invest in hundreds of loans for you.

With this recent development and many more exciting things in our pipeline, we welcome you to try this new feature for your own account. If you’re not a current member, create an account. Enrollment process is simple and you can earn up 18% returns on your bitcoin³.

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¹ Information in this chart is for information only.  It is impersonal and not individualized for any specific investor’s financial situation and it is not investment advice.  This chart is not intended to be, nor should you interpret it to be, a prediction of how a particular portfolio will actually perform.  You should always carefully consider investments and should be comfortable with your understanding of the investment.  You may also consider consulting investment professionals.  

² This information is not intended to be investment advice. Loans invested in via BTCjam are not guaranteed or insured, and investors may lose some or all of the principal invested. You should consult your financial advisor if you have any questions or need additional information. Actual results may vary.

³ Historical performance is not a guarantee of future results. Loans invested in via BTCjam are not guaranteed or insured, and investors may lose some or all of the principal invested.

AutoInvest Users are Averaging 18% in Returns

On May 20th, we released AutoInvest, a feature that allows our investors to easily diversify their  investments into 100 loans or more. The member feedback has been positive on the ease of use and the functionality that is in place.  We created this feature because many of our power-users understood the need to diversify; however, going through the loan listings was cumbersome and time consuming.

We are happy to share the early results with you – which show the power of diversification and also the strong adoption of AutoInvest.

From the table above, you can see the correlation between a diversified investment strategy and positive returns. Today, those investors who commit to an AutoInvest plan and maintain the plan on an ongoing basis are realizing the best outcomes.  Over 97% of investors are seeing a positive return over 18% while there are over 1,800 active AutoInvest plans.

For those of you using the program, let us know your feedback on improvements you would like to see or what you like about it.  If you have not tried the feature as an investor – see what you are missing in terms of simplifying and diversifying your P2P loans.

Create an AutoInvest plan today.

How Greeks Can Get a Loan Today

Despite banks being shut down.

woman looking for money

With Greece being on the brink of leaving the Eurozone more than ever since their financial crisis started in 2008, banks have literally closed their doors in order to prevent a collapse.

Tough limits on withdrawals from ATMs are enforced and capital controls will be in place until at least July 7th after the Greek citizens’ vote to remain in the European Union and accept the high level of austerity measures. Amid all these economic short-fallings, the Greeks are flocking towards Bitcoin.

CNN reports:

“Ten times as many Greeks are registering to trade bitcoins on the German marketplace Bitcoin.de than usual, according to CEO Oliver Flaskaemper. Bitcoin trades from Greece have shot up 79% from their ten-week average on Bitstamp, the world’s third-largest exchange.”

The banks are clearly not doing much lending either, and with the press in a frenzy over the politician’s take on Greece’s imminent default, we are not hearing about the struggle faced by the 11 million citizens. The 11 million that will be voting for themselves to stay in the EU or not. The Greek citizens who are shrouded with uncertainty and waiting in the ATM lines that are to the street to get cash to pay for their bills, food, and childcare.

Harnessing bitcoin as a tool for international credit, BTCjam, a global lending network, can service a loan for a Greek today using a proven, and unique credit model.

The process is simple.

Enroll in 5 Minutes.  Apply for a loan.  Get your loan.

If you want to convert your bitcoin to local currency, you can send your bitcoin directly to an exchange for local currency.  To payback the loan, you send local currency to your exchange account and then send the bitcoin to your BTCjam account.

Get your loan today.

Or, grow your coins and get returns up to 19% APR.

BTCjam Presents AutoInvest – The Easiest Way to Grow Your Coins.

We are happy to announce our new feature AutoInvest – the simple and powerful investment tool that will allow you to invest into hundreds of loans with just three clicks.

How it works

AutoInvest plans instantly diversify an investment budget into select loans that meet an investor’s selected portfolio criteria. Investors will be able to create investment plans with as little as 1 BTC.

We offer three different allocation profiles to match the risk appetite of an individual investor. Each of them have an expected return that takes into account what the borrowers are paying and the expected loss for the whole basket of loans. 

Conservative
As the name implies, this portfolio is for conservative investors.  This plan’s objective to minimize risk and only invests in A and B loans.

Moderate
This plan invests in A, B, and C rated loan listings.

Aggressive
‘Getting aggressive‘ with your risk profile allows you to invest across all loan ratings (A, B, C, and D). Investors that are comfortable with a higher level of risk can select this plan.

In addition to the allocation profiles, for those who want to customize their portfolios, we offer advanced settings where types of index currencies, loan terms and number of investments can be specified.

 Once the plan details are confirmed, investors can kick back and relax while our system automatically invests into dozens of loans ensuring your portfolio is diversified. If the plan’s investment amount set was higher than the current balance, future deposits will be used until the plan amount is met. AutoInvest plans are indexed and can be reviewed and monitored throughout their lifecycle.

Why should you use AutoInvest?

It’s simple.
We believe in providing the easiest way for investors to use BTCjam. With AutoInvest all investors need to do is deposit Bitcoin, choose your plan and check the returns.

It’s fast.
AutoInvest is a quick tool that requires little to no maintenance, some Bitcoin, and just three clicks to make the plan.

It’s reliable.
With every allocation profile, we provide the expected APR per plan. Keeping investor’s  portfolios diversified, and their returns transparent and consistent.

Other Changes

Together with AutoInvest, we are now using Yield to represent the return potential for individual loans. We received feedback on the confusion of “expected loss” on individual loans so, we’ve simplified it. By showing the yield, details about the individual loan and the borrower, we are allowing the investor to make the decision of whether to invest in any individual loan. 

Here is the formula for Yield:

yield

Grow your coins with AutoInvest today!


Or, get a loan starting at 6.7% APR.

San Francisco’s First Bitcoin Retail Store

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Bitcoin ATM in Nakamoto’s Store

20Mission is welcoming the return of an old friend in a new form. The longtime coworking space and former home to Purse.io, located in the heart of San Francisco’s Mission District, is launching the opening of Nakamoto’s electronics. Nakamoto’s is the city’s, and potentially, the world’s first Bitcoin centric retail space where customers will receive eye opening discounts on all products for purchasing in Bitcoin. Think along the lines of 10% off Amazon 100% of the time.

Andrew Lee, the CEO of Purse.io, is excited to bring Bitcoin to the public. The lack of everyday practical use and application for Bitcoin was a driving factor in the concept for a physical retail location. Nakamoto’s is a direct extension of the Purse.io idea in brick and mortar form.

“It is a great way to onboard new users with goods and products that they can pick up and physically touch. We’ll have a BTM (Bitcoin ATM) on site so if you don’t have Bitcoin and only have cash you can purchase Bitcoin and take your discount on the spot.”

What better way to stay in the Bitcoin community than to have the retail store primarily backed by the Bitcoin community itself? While other avenues like Kickstarter were considered it was important enough to support the bitcoin community and use one of their own. Majority of the funding came from loans that were funded on the BTCJam peer-to-peer lending platform by BTCJam investors and Bitcoin enthusiasts alike. Andrew already had experienced the platform as an investor in loans himself so it was something he and his associates were familiar with.

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Prices at Nakamoto’s store are up to 20% cheaper than normal retail rates

“BTCJam was not only a great way to raise money but awareness through the social attraction of the platform.”

During the funding process, Andrew and his associates were able to discuss the plans for the loan with their investors, bringing awareness to the Nakamoto project.

“San Francisco needs a killer Bitcoin merchant and store. Despite what the rest of the world thinks, there are very few practical merchants that accept bitcoin in the Bay Area.”

20Mission, once the the legendary home to Blockchain.info, Purse, 37Coins, Tradehill and Piper Wallet is the epicenter of Bitcoin in Silicon Valley and the meeting spot for San Francisco’s first Bitcoin meetups. Tonight Nakamoto’s will be hosting a mixer and pre launch party for the Bitcoin community at the 20Mission location starting at 7pm. The public grand opening will be Friday, February 6th. San Francisco and possibly the world will have it’s first retail store where Bitcoin is the primary currency.

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Looking to have your next idea funded? What are you waiting for? Head over to BTCJam and apply for a loan today.

– Jarrett Carlston BTCJam Team

No More “E” Loans

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As you may know BTCJam sets interest rates for borrowers based on creditworthiness that we uniquely calculate through statistical analysis with our credit scoring algorithm – this practice is called risk-based pricing. After careful consideration, we have determined that allowing borrower’s with an “E” grade is too risky for investors.

The repayment rate is very low for E’s because the borrower has not supplied enough information about themselves in order to be scored accurately. We do not display the ROI for E’s on our stats page; however, our internal calculations have concluded that the repayment is around 30% which we consider to be too dangerous for our investors.

E grade borrowers will be encouraged to verify more documents and connect accounts. We have a plethora of external accounts that can be connected that we use analysis on, and will most likely help them to be able to create a loan.

If you are an E borrower, improve your score now.