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BlockFi Launches Crypto Savings Account

By Rafał - 2019-03-09

BockFi recently announced the launch of an interest yielding investment account. The company which enjoys the backing of crypto investment firms such as Galaxy Digital, Morgan Creek Digital, Consensyns among others raised $52.5 million in crowdsale last year.
The BlockFi account yields 6.2 percent annually but the scheme is meant for entities holding over $10 million in assets. The financial instrument still on private beta demands that the investors hold their assets with Gemini Trust Company LLC.

Today we are launching the BlockFi interest Account (BIA). Users can securely store Bitcoin or Ether at BlockFi and receive 6% annual interest, paid monthly in cryptocurrency! BIA interest compounds monthly, delivering an industry-leading APY of 6.2%. https://t.co/QmkRVxOBQ7 pic.twitter.com/Gn247S6LAw

— BlockFi (@TheRealBlockFi) March 5, 2019
Although Gemini is regulated by the New York Financial Services, the service is available to US residents in all the states except New York, Washington and Connecticut.
News of the interest yielding account for cryptocurrency assets was received with mixed reactions. Some analysts were of the opinion that it gives crypto holders the opportunity to earn on their assets. Considering that the ROI is higher than what is obtainable from savings account, this is presumed to be a good idea.
However, the misgivings of many is premised on the fact that crypto is a volatile asset. The belief is that the BlockFi annual gains could easily be wiped out due to market fluctuations.
The advantage of an interest yielding account such as offered by BlockFi is that it creates an avenue through which funds flow into the crypto ecosystem.
This is a welcome development because it is common knowledge that greater demand for digital currencies is a herald to price stability and sustained recovery from the prolonged bear market.
That consumers are looking at crypto investments is an indication that they are not satisfied with available fiat investments and a credit to the crypto industry.
BlockFi vs DASH
Dash, as most of the masternode networks, boast returns higher than conventional savings accounts.
Dash in a statement released through a blog post compared the BlockFi account to the Dash masternode’s ROI. According to the post, the portion of the block investment received by node operators on the Dash network yields 6.7 percent annually which is higher than what BlockFi offers.
Running masternode has a lower entry requirement. It costs about $100,000 or the equivalent of 1000 Dash to acquire a full node on the Dash network.
For more visit: https://blockfi.com/blockfi-news/blockfi-interest-account-now-live