Interest account in bitcoins? That’s it! Startup BlockFi promises 6.2% per annum.
Better than 0%
For crypto investors, 6.2% per year is a ridiculous profit. We are used to x ROI. But for the banking market this is a very interesting rate. Do not forget that in some countries there is near zero interest rate, or even negative. And then, it’s still better to get 6% than not to get anything – many hamsters will decide that way. And even decided already. The company reports that it has been testing services since the beginning of the year and has already got $ 10 M funds. Bitcoins and ETH are accepted.
A bold decision can really blow up the market and cause a stream of imitators. At the same time, experts fear the emergence of proposals for the Ponzi scheme. One of the lawyers has already issued a caution and, incidentally, kicked innovative financiers. Steven Palley said on Twitter that if the rate were really the same as announced – 6% per annum or 6.2% APY (Annual Percentage Yield), then he would not even doubt that this is the Ponzi scheme. But, having looked more attentively at the document, he found in a small print an addition that the company can revise the rate on a monthly basis. And calmed down – because this is real business.
It is noteworthy that withdrawals are possible at any time, and the safety is guaranteed by the famous Winklevoss brothers through their Gemini Trust Company LLC.
A little more positive
If you do not consider yourself a hamster, then the offer is only interesting to you if the Corn in a year will have price less than $ 4,140 (+6.2% of today’s rate). Are you serious?
Interest account is also offered to institutionals. BlockFi CEO Zac Prince states:
“The launch of BlockFi Interest Account (BIA) is another significant step in BlockFi’s goal of becoming the go-to provider of financial services for crypto investors. Lending and borrowing is readily available at the institutional level, and we’re excited to leverage our relationships and capital markets expertise to provide utility and yield on digital assets for all crypto investors.”
BlockFi is engaged in lending and borrowing. But the rates on loans are generally less than 6%: in the US, the mortgage is about 3-4%, vehicle loans – 2-3%. How are they going to make money? But there are still student loans, and here’s the rate of 6-13.5% in the USA. If funds are collected for this particular sphere, then the company will attract the younger generation to crypto.
In any case, a laudable initiative promises to expand the adaptation of cryptocurrencies – and this definitely benefits the market and industry. By the way, it is stated that these interest accounts are available for citizens of any country.