P2P Lending biggest Concern — Safety and possible upsides

One of the biggest questions and concerns, when you google P2P lending, is concerning its safety and possible upsides.

This is a very valid concern as you are lending money to complete strangers and have no idea what their intentions are. Many people try it and are disgruntled with their returns and deploy their capital elsewhere after a couple of months. This is one of the largest concerns in the industry, lenders just aren’t satisfied with paying an origination fee while not getting the returns they desire.

This problem sounds familiar, doesn’t it? Sounds like the reason Satoshi invented Bitcoin. How do we create trust between complete strangers where they can transact and exchange money while minimizing the chance of defaults and still gain the returns we desire. We now have an answer with blockchain. There are many creative ways to solve this problem, but the main value is that information for individuals who desire loans and lenders is irrefutable and immutable now so the chance of defaults and scams should significantly fall, yielding higher returns for lenders and happier customers with competitive interest rates.

These synergies in this space with blockchain will be endless as there is a new way to trust someone you have never met or probably will never meet ever.