Introducing NAR: A Useful Tool for Successful Investors

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What is Net Annualized Return?

NAR (Net Annualized Return) is the measurement of the performance of your total investment on BTCJam. It reflects the funds actually received each month.

You can now view your NAR of all your investments on BTCJam in your Investments page.

What makes NAR useful as an investor?

As an investor, you need to eat, sleep, and breathe NAR. (Also, expected APR – see more here).

If you were a painter, the paint would be your invested bitcoins, the brush would be BTCJam, and the NAR would be the painting. NAR is the most accurate measurement to monitor how you have grown your bitcoins on BTCJam.

How does BTCJam calculate NAR?

To calculate NAR, the numerator is composed of interest received, plus late fees received, minus the amount in default. The result is divided by the total mature principal. The mature principal is the investment that has already a related payment or default.

For notes, your notes sold also affect your returns both positively and negatively. If you sold a note for 1, but invested 1.2, you will have a -0.2 loss. If you bought a note for 0.1 and received 0.4 in payments you will have 0.3 in gains

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This is a live calculation so every event that can change it is automatically performed.

BTCJam started using this calculation from April 1st, 2014, so this only reflects your return starting with funds invested on or after April 1st, 2014.

Get g’nar’ly,  and start investing today.

Peer-to-Peer Lending Will Change Developing Countries

Scenario: You are a middle-aged labor worker in Sao Paulo, Brazil making minimum wage which is about $310 a month. Your wife has just given birth to your second child meanwhile living expenses have been depleted and you are in debt with one of your two credit cards from paying for medical operation and basic needs. You are faced with paying almost 200% APR on this debt, and your loan application to banks have been denied because of your negative credit rating.

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Unfortunately this is common situation in many developing countries. Hard-working individuals are financially trapped, tricked into accumulating more debt by payday loan providers, and they rarely triumph over these barriers, which prevent them from living a stable life.

People in Developing Countries need of solution that will:

  • Provide reasonable, equal opportunity interest rates
  • Have an easy application
  • Use a payment protocol that can transcend borders
  • Be transparent and efficient
  • Empower the individual

This is what peer-to-peer to lending powered by Bitcoin does.

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Taking out a loan on BTCJam is as easy as a few clicks; simply submit your identity documents to prove you are a real person. When creating a loan, you are given a suggested interest rate determined by the credit scoring algorithm; however, you may choose whichever rate works best for you. This effective and labor-saving process permits anyone to get a loan from the comfort of their own home regardless of origin, financial history, and state determined credit rating. Anyone with internet access has the opportunity to get a loan without going through unnecessary intermediaries.

With peer-to-peer lending using Bitcoin, entrepreneurs from developing countries are able to take out loans that they would not otherwise have access to and put the funds towards their ventures. For example, Gaston Azzollini, an Argentine borrower on BTCJam’s platform, has taken out a series of loans to put towards his various businesses in Villa Carlos Paz, Argentina. One of them is the restaurant Lo De Elvio where all BTCJammers are welcome to dine at a discounted rate.

Economies of local communities are being funded on a macro-level because of Bitcoin. BTCJam’s peer-to-peer lending platform is helping to strengthen the economies of developing countries while providing 24/7 nondiscriminatory access for consumer loans.

Plant your seed of Bitcoin today.

Photos of Gaston and his restraunt Lo De Elvio in Villa Carlos Paz, Argentina

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