5 mins

Borrower interview | Bitcoin entrepreneur builds arbitrage system

Chris Grundy
Oct 7, 2016

Today we have the great pleasure of bringing you an interview with bitcoin entrepreneur and Bitbond borrower Matt! Matt is in the process of building a sophisticated bitcoin arbitrage system and is asking for a small business loan of 16 bitcoins over 12 months. Interest rates stand at 28.25% and investors only have 11 days left to help fund this loan. Matt has already repaid a previous loan of 2 bitcoins which he paid off on time within 6 weeks.

Now, let's get to know Matt!

B: Hi Matt, thank you very much for taking the time to talk to us. Could you start off by telling us a little about your business?

M: I'm not running a business, I'm running a project. I'm building a Bitcoin arbitrage system that will make profits by trading in different Bitcoin exchanges. Because of the nature of digital currency, Bitcoin market is not an efficient market at all, which means there are market opportunities that investors can make use of.

The arbitrage system I'm building executes high frequency trading while seeking arbitrage opportunities in Bitcoin market. It pulls real-time data 24x7 from all over the world, uses history data to predict potential profit. Once it's profitable enough, the system will run the trades.

B: How come you ended up choosing this particularly niche?

M: I Myself is an active Bitcoin trader, I have trade accounts in Euro, US and China. I found there is profit margin while I took part in trading in different exchanges. Maybe it's not super profitable, but it does work and generates profit. With the improvement of system design and algorithm, the profit margin will become impressive.

B: What do you hope to achieve with your loan and why did you choose Bitbond over a bank?

M: I'm taking loans on Bitcoin to run the system. The system adopts hedging strategies so that it's Bitcoin price irrelevant. Whatever amount Bitcoin is put in the system, the exactly same amount will be kept all the time. The system just needs Bitcoin to take part in trading.

It's the price different that profits the system, not the price itself. Bitbond is just the right place to get capital for this system because here offers Bitcoin P2P loan (Bitcoin in, Bitcoin out). I also tried many other Bitcoin P2P platform, but Bitbond is more reliable, mature and offers low fee and interest rates.

B: What is your favorite feature on Bitbond? What features do you think are missing?

M: I think Bitbond keeps a good credit system. It verifies users' identity, connect with external accounts, and also evaluate user's activity history on Bitbond. It makes me feel reliable and safe. It's a wise choice to either take a loan on Bitbond as well as invest. However, I think Bitbond can extend the capability of social network. For example, it will be good if I can send some people private message.

As a borrower, I can keep good relationship with lenders, so that both of us will have more activities together (borrow and lend) because we built trust between us. Now the only thing I can do with others is following. This is so limited. I can't even seen others twitter account.

(Editor's note: We created the Bitbond facebook group as a place for borrowers and lenders to communicate)

B: What would you want potential investors to know about your loan?

M: Building the system is a long term plan. I plan to post a series loans to fund the project. I wanted to guarantee investors they will get their investment back on time and with profit. The repayment of my loan comes from two sources: 1. My salary as full-time software engineer as I work in tech company 2.

The profit made from the system. Because I will post more loans, I wanted to keep all loan history clean and excellent. The loan is riskless anyway.

B: What do you think the future holds for bitcoin? Is it the modern-day equivalent of the internet or will it fall flat on its face?

M: I think Bitcoin will be accepted broadly in the future, probably in a near future. I've seen many country government are trying to use digital currency.

B: As an employee, does your place of work accept bitcoin? If not, what do are the chances of that changing?

M: No, it's not currently. Maybe not easily. Bitcoin is like gold, by design. To make it generally accepted, we need regulators, policies and users. FIAT money is a good fit for this purpose. Bitcoin is not. However, anything could happen. Who knows?

B: Thank you very much for taking the time to talk to us Matt! Investors only have 11 more days to help fund his 16 bitcoin small business loan. Thanks for reading 😍

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