Blockfi has released a new crypto fund that allows users to earn interest on their deposited Bitcoin, Ethereum, and Litecoin.
Our team analyzed this release after it was brought the Crypto Twitter by @APompliano
BANG BANG!@TheRealBlockFi is launching a Bitcoin and Ether deposit account today where you get paid 6% annual interest, compounding monthly, paid in cryptocurrency.
Bringing the HEAT on a Tuesday 🔥🔥https://t.co/Zq6k9Xc4rA— Pomp 🌪 (@APompliano) March 5, 2019
Why the Blockfi Buzz?
Pomp’s announcement of the crypto interest fund spark interesting commentary over the Blockfi fund. Some people were calling it legit while other were calling it a scam.
What is Blockfi?
Blockfi is a crypto lending service that provides high interest crypto accounts and low-cost credit products.
What is the interest account and how does it work?
The Blockfi interest account allows people to deposit Bitcoin and/or Ethereum and earn 6.2% interest.
How does it work?
Account holders deposit their Bitcoin and Ethereum and receive monthly interest payments. These payments compound and over the course of the year will turn into a return of 6.2%
Who can open an account?
Anyone worldwide can open an account beside a few select countries and a few select US states (NY, CN, WS)
What are the minimum deposits?
1 BTC or 25 ETH
How is Blockfi able to pay people interest?
Blockfi offers collateralized loans backed by crypto, meaning you can receive a loan in USD or GUSD by using your BTC, ETH, or LTC as collateral. All that is required to reclaim your collateral is to repay your loan + interest (about +8%). Blockfi then uses the money made off the interest to pay the 6% interest to the account holders of their crypto interest account.
Why are so many people against it?
A lot of people are usually assume everything in the crypto space is always a scam. Just a natural reaction for a lot people. Many also compared it to Bitconnect, since Bitconnect was also a crypto lending platform.
Why is it different than Bitconnect?
Bitconnect was a ponzi scheme promising over 40% return a year – a $1,000 investment would turn into $4 million in 3 years. Blockfi is offering 6.2% interest a year. That same $1000 investment would turn into ~$1,200.