When the cryptocurrency Bitcoin was released in 2009, there was divided option, but it has grown. It is a form of electronic cash, but many have been using it as a form of investment. The price volatility has been a negative surrounding it, but there are always great offers available, similar to when using the Energy bet promo code.
However, this negative has meant that Bitcoin value is continuing to decrease as we move through 2019.
However, a cryptocurrency based lending start-up called BlockFi, is looking to help with the appeal of digital assets. Being backed by the Winklevoss Twins’ cryptocurrency conglomeration gemini, they have agreed to help with lowering the threshold for BTC investment by participating in its interest generating program.
This will of course enable for more people to get involved in the investment of cryptocurrency. The Winklevoss Twins are renowned for their previous feud with Facebook founder Mark Zuckerberg. This was due to the fact they claimed he stole their ConnectU idea to create the social media platform. Through this they ultimately received $65 million. They are also heavily involved in bitcoin and in 2013 claimed, they owned around 1% of all bitcoin in existence, which means they would have had holdings of over $1 billion.
Backed by the twins, BlockFi have recently announced the creation of interest bearing accounts for Bitcoin and Ethereum, which will be the first on offer. They are based in New York, and will be paying out 6.2% in interest on deposits of Ethereum or Bitcoin. However, they have now changed the minimum required BTC balance to earn interest to 0.5 BTC. This is following an extensive community feedback from many involved.
So has this been popular? BlockFi have reported that they have received a lot of interest and demand from customers based in India. This means they now service clients across 65 different countries around the world. BlockFi have also now claimed they hold around $53 million in client based cryptocurrency, which is an indication of how popular this has been.
This interest bearing lending is providing a fast growing option for many, and an intriguing avenue. This is despite the continue negativity surround cryptocurrency and bitcoin in general, due to the previously mentioned high price volatility. This therefore is a key issue with it being used as a form of lending. BlockFi is going against this idea, and it will be interesting to sees its progress in the coming years.