Despite the 2018 market downturn, one clear beneficiary seems to have gained from Bitcoin’s drop in value over this past year.
Creditors targeting cryptocurrency investors who have chosen to hold their coins rather than sell at low prices have benefited, as well as finding business through investors who want to stock up on cheap coins for short sales.
A Bloomsburg report has suggested lenders been doing their own productive mining picking up sales throughout the bear market. The report suggests that the market is “putting lenders on both sides of Bitcoin’s bust: Helping believers pay their bills while awaiting a rebound, and also enabling bets by people who think the drop has further to go.”
One lender BlocFi, which lends fiat to cryptocurrency depositors, commented that its customer base and revenue had increased by 100 percent during the latter part of 2018 after Mike Novogratz invested $52.5 million in the firm. CEO Zac Prince suggested this kind of business was low risk, confirming that the company had never suffered losses from this kind of activity.
Genesis Capital, another lender had issued $700 million in loans with a current $140 million outstanding loans. The company’s CEO Michael Moro said that the company had been in profit since its launch in early 2018, commenting: “We’ve certainly proven that there is market demand, that there’s product fit and that it’s time to invest even more in this side of the business.”
Salt Lending, another lending company is doing so well that it is forced to expand its operation to deal with new businesses, adding new employees to the 80-person team every month.
Clearly, the bear market has a bullish side for those approaching cryptocurrency from an entirely different angle, where Bitcoin’s misfortune becomes a provider of business.
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