23 march 2020 by Clementine
Due to increased demand for the crypto-assets, the loan service BlockFi took the resolution to increase the annual interest on certain investments in crypto-currencies.
The interests of BlockFi increase
BlockFi is a loan service that enables users to receive interest earned on their investment in crypto-currencies. After seeing a spike in requests for crypto-currencies, the company has decided to revise upwards the interest rates applied on assets in Bitcoin and Ethereum.
“Our balance sheet is stronger than ever and the changes on the markets of institutional loans have created opportunities that expand our margins “, commented BlockFi.
From the first of April, lenders on the platform BlockFi who hold more than 5 BTC, will see their interest rate go from 3.6% to 6 %. For Ethereum (ETH), the rate of interest will also be capped at 4.5% for those who hold more than 500 units of Ether.
Differences with the traditional market
While the interest rate for the crypto-assets are rising, those applied in the traditional financial market collapse. This difference is explained by the fact that the crypto-assets, unlike financial assets, traditional, represent a safe haven in times of economic crisis.
“The next few weeks will be interesting, as we will see, if assets such as gold and Bitcoin stand out in the public equities market. (…) After the return of the dust in 2008, gold has seen a very good performance and we’ll see if the Bitcoin is experiencing a similar life cycle, ” said Mr. Prince.
In the meantime, BlockFi has experienced significant growth in two years. The company’s revenues have been multiplied by 20 in 2019. The Blockchain does not stop in so good way and are planning to take advantage of the potential of the Bitcoin market in a period of economic uncertainties.
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Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting. The latest articles by Clementine (see all)