I wanted to try BTCJam too, i just fear that they go away with what you invested :/
beware most people in btcjam using false identities and go after them to get loans. they will seek trust + first to gain confidence after that they will go and scammed you
yups always look their trust rating if you want to lend
I think the trust could be misused dude I had several times lent bitcoin to users who have high trust and they cheat me go with my bitcoin and did not return there are people who deliberately cultivate trust them so many other users who believe later when a certain time. He will lend larger bitcoin then go out
In my own opinion, lending business is not viable in bitcoins as it is anonymous and we can expect there are a lot of scammers in the community, if you are just lending with a little interest then the risk is higher, you better invest in bitcoins and hold, safer than lending.
Therefore collateral should be more valuable of money on loan.
If he doesnt pay back it means you can sell the collateral and get a bit of investment loans it
The only "guarantee" you have for when you loan to other people is if they give you some form of collateral that you are able to sell later on (in the event that they default) and usually scams only result when they DON'T provide collateral, or at least when they provide crappy collateral (shitcoins, online accounts, etc.)
I will not prefer to invest my bitcoin in any online site, but I will keep on investing my fiat money in bitcoin itself, as I think that can be the best investment for future.
There are many ponzi sites available now which are difficult to trust, its better to invest in bitcoin and hold it for next 5 years to get best out of it.
Difficult to trust? More like you wouldn't trust them at all. But, in certain scenarios, you can turn a pretty penny by getting in quickly. Though I don't recommend this because some sites may scam right away, there are some occasions where you can get a couple bucks from ponzis. I'd say that it's similar to conventional gambling.