This announcements marks a very unique event in the world of Bitcoin. Genesis Mining, a company offering Scrypt Cloud Mining contracts, is partnering up with BitLendingClub, a peer-to-peer Bitcoin lending network.
BitLendingClub is a platform for people to either loan or borrow Bitcoin. As a lender, you are entitled to an interest on top of the amount of Bitcoin you lend to someone. As a borrower, you are obligated to pay the amount of Bitcoin back, with additional interest.
When you want to borrow money through BitLendingClub, you can create an offer for the amount of Bitcoin you need, and what it will be used for. Lenders will submit offers, allowing the borrower to pick the best offer (based on time to pay back, interest, etc).
Once you receive the Bitcoins, you then have a certain amount of time to pay back the money with interest, and thus the lender makes a profit. Completely peer-to-peer, just the way we all like to do our Bitcoin transactions.
I can see you all thinking :”I get the picture, but what does this have to with Genesis Mining?” A very good question! As you may have noticed me mention, in order to borrow Bitcoins, you have to create a listing, in which you specify what you need the money for.
As of today, Genesis Mining contracts are part of BitLendingClub. If you want to sign up for Scrypt Cloud mIning through Genesis Mining, but you don’t have the required funds, you can borrow funds through BitLendingClub.
This deal is not only ground-breaking in the world of Bitcoin, but it also makes sure all parties are safe from any malicious plans. People who want to borrow money through BitLendingClub for a Genesis Mining contract can not withdraw the Bitcoins they receive as a loan.
The money you borrow, is used to pay your Genesis Mining contract directly, thus ensuring Genesis Mining gets paid. The people who loaned you the funds are safe too, as you will never actually “touch” the funds , so it can’t be used for other purposes.
But you, as the borrower, are protected as well. Your Genesis Mining payouts will be used to pay back your loan. Once your loan is paid off in full , you can withdraw your Genesis Mining earnings via your BitLendingClub account.
Do keep in mind there is a certain time frame during which you can pay back your loan. Even though your Genesis Mining earnings are used to pay back the loan, it could be possible you need to provide additional funds to pay off the loan in time.
This partnership is the very first of its kind in the world of Crypto. Cloud mining + end-to-end Bitcoin lending is the best of both worlds, and opens up a whole new array of possibilities for all parties involved.
BitLendingClub website : https://bitlendingclub.com/
Genesis Mining website : https://www.genesis-mining.com/
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