Before we talk about P2P lending and networks like Bitcoin, let’s give a shoutout to two of the biggest peer-to-peer focused platforms in the world that have become part of our regular routines….Uber and Airbnb. The entire foundation for these two businesses is P2P. People rent out their spare rooms, flats and houses to others directly. People use their own cars to provide lifts.

Such simple concepts have disrupted both markets to the point of being banned in some cities, with constant lawroom battles and strikes. There are actually many similarities in growth to Bitcoin’s network and how it went undetected by the legacy systems before being noticed.

And these ideas have spawned into similar platforms like Deliveroo and many others. It’s all built on the idea that people can interact, peer-to-peer without a central intermediary. When you give it some thought, you have probably used many P2P based platforms like Facebook Marketplace, Ebay, Depop/Vinted, and pure P2P networks like Tor and Bitcoin.

Now these same frameworks are being applied to the world of finance and it’s changing everything.

Here’s how we’re disrupting traditional banking with Bitcoin-backed P2P lending:

What is peer-to-peer (P2P) Lending?

Just as Bitcoin cuts out the middleman who wants to hold your money because you have no other option, P2P lending is a marketplace that enables individuals and businesses to borrow and lend money directly without needing to go through a bank to apply for a loan, which is often costly and timely.

P2P lending means no middlemen or centralized custodians taking a big slice of the pie.

The biggest benefit you’ll often notice from using these systems is more choice and an improvement in user experience.

In the case of Uber, before, you might have had to settle for paying 3x the reasonable rate to a local Taxi driver whereas now you have almost endless options because there’s a wider marketplace giving you different choices.

With Bitcoin, unless you store your coins on a centralized platform, all you need is an address and you can send to anyone, anywhere, for a reasonable cost… try doing that with your bank.

How P2P lending differs from traditional bank lending

Bitcoin is P2P money. P2P money requires a P2P credit rail.

This is why P2P matters for Bitcoin:

• Decentralization

• Transparency (no more “trust me bro” systems)

• Full control

Like Satoshi Nakamoto said:

“Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.”

This also applies to P2P lending. Firefish was built using that same Bitcoin ethos. We want you to get the best rates without losing control of your collateral, and this is collateral that cannot be replaced by a central bank. It’s finite!

10 reasons Bitcoin-backed P2P lending with Firefish is superior to traditional bank lending

1. Built on Bitcoin:

Firefish works by connecting Bitcoin HODLers directly with lenders (think Investors), using a smart contract built on top of the Bitcoin network.

This effort to disrupt modern finance by using Bitcoin at the core, transforms lending into a more reliable, safer practice for you to take part in.

Given that most banks still won’t touch Bitcoin, this gives Bitcoiners access to modern finance services with the future of hard money.

2. Non-custodial model:

At Firefish, our non-custodial escrow model ensures your Bitcoin collateral is never touched or mishandled.

There’s zero risk of rehypothecation and your assets are secured by code, in a multisig vault.

3. More flexibility:

Anyone can borrow easily with Firefish:

• Get interest rates from 5%

• Loans start at €800 (with no maximum limit)

• 3-24 month terms

• Rollover your loan for more options

4. and freedom:

We ran a poll recently asking our users the following: “What does peer-to-peer (P2P) mean to you?”. Here are the answers:

Control: 7.3%; Freedom - 58.5%; Empowerment - 9.8%; Privacy - 24.4% This is why many opt for P2P loans on Firefish. As a user says from a recent review:

”Shun banks. This is the future: Went off incredibly smooth. It's interface is intuitive, and I got a deal matched for my loan in a matter of hours. Can definitely recommend it. Way better than begging banks for loans. Puts you in control.”

5. Faster approval: Get access to a Bitcoin loan within a few days instead of weeks with traditional bank loans.

6. No credit checks, more privacy:

Firefish loans use collateral instead of relying on credit checks, credit history and income verification.

7. Borderless loans:

Bitcoin loans have better global reach, so even in locations where the banking infrastructure isn’t available to users, there’s another option. Firefish offers USDC loans globally.

8. No more late fees:

At Firefish there are no monthly payments, so no more late fees. You repay the full sum at the end of the loan term.

9. Better rates:

Get market-driven rates generated by supply and demand. No central authority needed.

Here are market-driven interest rates in action. This is why Firefish exists: Making lending affordable with economics driving interest rates. Since early Q2 2025, the 21-day average interest rate on EUR loans on Firefish has been declining.

10. Live off your Bitcoin without paying extra:

No Bitcoiner wants to sell their hard earned coins, but in a fiat world we need money for investments and for daily living. But who feels comfortable sending that Bitcoin to a centralized exchange, or lender?

With Firefish Bitcoin-backed loans you can avoid capital gains on Bitcoin sales and keep worries and hassles at bay by using a P2P lending platform based on decentralization, with the same easy-to-use interface you’d expect from centralized platforms.

Peer-to-peer (P2P) lending: Common FAQs

• What makes Firefish peer-to-peer?

Firefish offers the technology that allows borrowers and investors to interact securely with transparent escrow and settlement.

• Can anyone get a P2P loan with Firefish?

Anyone can borrow on Firefish, but you are required to comply with standard KYC/AML regulations. This identity verification process is required for regulatory compliance and secure financial transactions.

• How is my Bitcoin collateral stored in escrow with P2P lending?

Your Bitcoin collateral is secured in escrow in a multisig wallet. It’s secured by code, not custodians.

Firefish, built by Bitcoiners for Bitcoiners

There’s one main reason we created Firefish: we NEVER want to sell our Bitcoin. But we still need to operate in a fiat based economy, which is why we rebuilt modern finance systems with Bitcoin at the core. From day one we knew this platform had to stay true to the ethos of Bitcoin and the users, which meant:

• Being transparent and open

• Being P2P

We see this open-market for Bitcoiners becoming more powerful as the world prices Bitcoin more accurately over time.