1000121 Abandoned Gold Mine (Loan Closed)

This is worth a read if you're considering buying into this loan:-


www.economist.com/graphic-detail/2019/02/07/will-bitcoins-price-crash-cut-into-its-energy-use

I stay away from anything that has crypto or Lendy in it...err wrong thread?? may be not.

ped - These guys don't hold onto the mined coins, they sell all coins at the end of the day

davidspindle - The fact that the energy is generated from the removal of tyres from the ecosystem (a big issue: ecogreenequipment.com/how-do-old-discarded-tires-affect-the-environment/) is a big plus

@bobo - It burns electricity generated from getting rid of tyres, "The interesting part is that all of our energy is created from waste. Our main product comes from used tyres! We use a pretty nifty process called pyrolysis to break down waste into an oil. We then use a clever mix of technologies to refine this oil into fuel feedstocks. Our fuel is then used in a mixture of generators or turbines to create electricity... The really great thing is that we do all this with really low emissions - in fact hardly any."

ladywhitenap - the proposal does not assume holding of crypto, it assumes that all crypto is sold at the end of the day and not held. The assumed price for the sake of the assumptions bitcoin $3900.

We take your point on the phrase and we will remove that. We will also add in a mitigant because it is the cost of power that is is the downside protection and the antidote to volatility - i.e because they are generating power for an extremely low cost, the company could reduce the power costs to well below what other miners are paying (as the director owns the powerplant and is being paid to take in tyres). As miners leave the space, the difficulty of mining coins reduces (the hashrate) so more coins can be mined.

We need to make it clearer, thanks for the feedback.

Lastly, we appreciate the passions, and it's important that debate is there. But something like crypto mining can create a very marmite situation. We have said this before; if you have questions, those are great and welcome by us and the borrowers and I would imagine, the rest of the community, but opinions are something we can't really answer as it could be seen as advice and probably should be kept to yourself unless you can add informed balance or informed value to those opinions.

My team put lots of work into potential loans. We have been speaking with the business for some time, management are known tech industry professionals and investors (including one who is on the same advisory board as a founder of Apple). Like we say, questions = awesome but dismissing people's business as 'socially and morally worth nothing' and 'low quality offering' on public forums, will just drive potential borrowers away from p2p and really don't encourage us to interact either, if we are honest, as it adds the sum total of zero to the debate without informed balance.

I do love to stoke a fire. I traded Crypto for a little a while, through CFDs and back then I think there were 84 recognised currencies there's probably even more now. KoR_Wraith yes and no on the macro I agree they tend to move together and drops usually follow government level announcements where the market interprets a threat to the future of crypto as a whole. On the micro level though there were significant polorisatitions between currencies. This, as I understand it, is mainly driven by a trader (or a lot of traders) moving from one currency to another to migrate drops. Crypto traders have tended to be fairly loyal over the last decade ie. they stay in Crypto just change currencies. 

In terms of the price not being relevant of course it's relevant on the sell out/disposal. I was just trying demonstrate that the mining process itself is a relatively fixed cost (could have been written better). I got out of Crypto in the end because it was just too rich/risky for me although I made a little bit. I do rate Crypto on the whole though and I do believe it has a future and this is mainly driven by the progress it has made in the last decade. It has gone from being dismissed as an outright scam, survived the torrent of cyniasium and has since been recognised on multiple levels, from acadiama, to regulators, to stock markets to mainstream banks (most high street banks now have a least little bit of interest in Crypto in one way or another) granted not fully adopted but they are certainly now taking a more serious look at it.

So given all that, this Ablrate offering lands bang in the middle of my risk profile. I don't think it's as risky as the raw exposure of day trading but it is operating in an inovatie new industry that I'm quite excited about. Time to get controversial, where I'm struggling to risk assess this offering is around the generational question. The average P2P lender is about 55, the average Crypto investor is about 30 and I can't help but view the expected resistance on this forum as being largely driven by on older demographic who are naturally more risk averse as opposed to a younger generation (i'm early 30's) who has a little more appetite for risk, or indeed whether that assessment is even fair. I do think Ablrate are being a tad ambitious trying to market this to (if it is in fact) an older lender base, i do think it will struggle fill on that reason alone. I do like a good ding dong though, it's what these forums are for so thanks guys. 
                                                    

fair point Steve.. ..the production of the fuel is low impact... and it would be burned regardless or there would be no point in having a plant that produced it. I am no expert, but my reading (of a University of Queensland paper) says that emissions are less from tyre oil as fuel then oil from fossil sources.... but now we are getting into a whole new thing that I do not pretend to understand!