I won't go into the definition of the p2p lending because it is already available in various resource which can be fetched through Google search! Rather, I would tell you about my experiences with it! It is a failed business idea in crypto space! BTCJAM was one of the pioneers of crypto p2p lending which closed down their operations back in 2017 or in 2018 beginning. I had an account and I used to lend to a lot of highly ranked borrowers. Only 90% people defaulted and I received only 10% of my investment back. I would be at least 4 bitcoins richer today if I had avoided this p2p lending business back in 2016 and 2017. It's a flawed business idea because you can't really track down a person in Nigeria from USA for few hundred dollars!
4 freaking BTC? Damn. I always knew that the p2p model was not sustainable or feasible in the long term due to the risks involved, but I did not know that this model was so heavily flawed in the crypto world.
Why do people even bother when there are way better alternatives out there? Plain stupidity.
Its always been the risk involved behind these p2p lending business.We say it is really flawed but there are still investors who do still sustain into this field.Not all people who do plan to have a lending business would succeed.
4 BTC is freaking a big amount and you cant really do anything yet tracing them down wont be an easy task and it would even cost you more.This is why most lendors of this forum do ask out some collateral which is more than on the amount you are borrowing incase they decided out to default.