Let's disrupt banks. Let's use raw steem power to do so.

Bitcoin was just a beginning of larger shift of mindset - instead of having to trust third party one can transact with others freely without asking for permission or licence.

Steemit is allowing people to earn money, instead of filling publisher pockets.

For me there is still one thing that needs to be disrupted - banks. They are taking deposits from people and multiplying their money using fractional reserve. They are not providing exceptional level of service - they are just leveraging special legal and economic framework made by government just for them. 

They have access to nearly 0% interest rate and yet they charge people absurdly high interest rates on credit cards.  Lending is ripe for disruption as Americans are paying billions in credit card interest

Imagine what if people will be able to fund others credit lines instead of using credit cards. Imagine if all that money earned will stay in local community.

There is an answer -  P2P lending.  But p2p lending have own issues - for example question if somebody will not pay back his loan or if p2p lending will break relationships between people. These are valid questions and i will try to show how decentralized reputation network can solve them.


First most important thing in investing is diversification 

Never keep all your  investment in one place.  So you should lend to as many people as possible.

Graphic below is good illustration

After investing in about 150 loans minimum return is not negative. In worst case you can get your capital back.  And that number - 150 is Dunbar's number. 

So by investing in your whole set of friends you will have at least not negative result (interest from loans will cover default losses)

If you have more than 150 people that are friends of your friends and belong to social lending market you will have positive return regardless of amount of luck.

So my idea was to bootstrap trust network 

That was just the beginning

And now network is larger and more powerful 

 

See the actual network here https://getline.in/friends/graph/

Help disrupting the banks by lending p2p without banks. There is some small amount of bitcoins granted to every new user of my p2p lending site - getline.in (it's applied next day after login)