It is always sad to see bitcoin-related services shut down over time. Although BTCJam did not have the best of reputations, they introduced a new use case for cryptocurrency. Bitcoin lending is an interesting market, albeit there are a lot of risks associated with it. BTCJam will effectively shut down very soon. Customers have until July 1st, 2018 to withdraw any remaining funds.
Curtain Call for BTCJam Not Entirely Unexpected
Ever since BTCJam launched a few years ago, the goal was relatively simple. This company aimed to provide people all over the world with access to fair credit. To make that happen, the team banked big on the success of Bitcoin. Since Bitcoin is the only global currency in existence today, it seemed like a bright idea at the time.
It has to be said, the company had no shortage of business either. Over 20,000 loans have been extended to 122 countries. In total, over 64,000 BTC has been loaned through BTCJam, which is quite impressive. However, not all of the loans are paid back. Over the years, the company got a bit of a negative reputation because of this. Then again, that is to be somewhat expected.
The decision to shut down the Bitcoin lending service was a difficult one. Regulatory challenges regarding Bitcoin remain a very large roadblock. Introducing cryptocurrency to poor communities is not an easy feat by any means either. BTCJam will no longer allow users to issue new loans. All funds on the platform need to be withdrawn by July 1, 2018. It is doubtful any of the outstanding loans will be paid back either, though.
Those who wish to continue paying off their loans can continue to do so without a problem. All functionality remains available until the loan is repaid in full. That is, unless said loan defaults, which is the more likely outcome. On paper, Bitcoin lending makes a lot of sense. It is unfortunate to see this company shut down because they couldn’t capitalize on it. It is unclear if the BTCJam team will explore a different business venture in the future.
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