Quote from: catastrophie on December 13, 2017, 09:36:29 AM

Quote from: vinay9 on December 13, 2017, 04:14:07 AM

Returns of 8-10% is very good in general terms. I agree that will be a huge investment opportunity for people who are not in crypto.

I am unable to understand the maths. Lets take an example. I lend 1000 NCL (@ rate of $1.5) of value $1500. After 180 days my $1500 grows to $2500. At that time NCL rate is $40 and hence I will be paid back 62.5 NCL. So I have in my hand $2500. Now, had I just kept and hold on to the 1000 NCL, it would fetch me $40000. Even If I hold on to $1500 worth of BTC, it will give me far far more attractive returns. The price of BTC when I purchased 500 NCL on 25th Nov. was $8300 and it doubled since then. Leave alone, the daily flow of various legitimate transparent and also lucrative, ICO opportunities. Now why will anyone in crypto like the 8-10% returns in lending. Agreed that 8-10% for people who are not in crypto is lucrative.

I would like to understand this. Am I missing something.

I see exactly what you are saying about holding the coins vs lending. This is the same across all platforms if you thing about it. Take bitconnect for example, if you invested 5k worth of BTC back in october that would be worth right around 15-16k right now. Sure holding it would have been the best thing to do however most people to include myself did not just hold btc but rather bough bitconnect coin. And to say BCC and BTC move in value with each other is a joke really, buying 5k worth of BCC back in October is not the same monetary value now at BTC. This is how lending platforms can afford to pay out your daily, weekly and monthly profits, you give them 1 BTC worth 5k, 6 months later you get your 5k back and they hold whatever the value of 1 BTC is. They are all the same with the exception of bitcoin growth bot. Bitconnects market locks down after big investors try to sell off, anything over 10% price fluctuation in the market will lock it up. 10% really isnt that difficult to do if one of the big youtubers decides to exit the platform. Bitconnect can also not afford to pay out 1% forever, think about it, after a 10k initial investment and 2 years later people are going to be making millions and millions and millions a day? It sounds great but its not sustainable, even if it was, one daily cashout would lock the market down for trading. At least here its more sustainable due to lower interest rates, even if the bot was garbage (which we can actually see now so we know its not) but for arguments sake the lower daily interest rate itself would allow the company to outlast its competitor by double. If company A pays 1% daily and company B pays 0.5%, assuming they pull in the same profit margins and customers, company B will last longer.

For me, lending make sense ONLY if I get back exactly the same number of NCL which I lend for x no. of days + additional profit on them for locking my tokens for those days. Thats 100% pure business sense and 100% reasonable and ethical too. I dont know whether that is sustainable or not. But I know that there is nothing unreasonable in it.