Cryptocurrency appears to be garnering more and more attention as the coronavirus spreads. According to crypto lending platform Block Fi, the company’s monthly revenue has doubled since cases began to spike, suggesting that more people are beginning to see BTC and other forms of crypto as the ultimate way of hedging their wealth against inflation and other economic problems.
Block Fi Is Heading for the Top
However, in a blog post, the company suggests that the bitcoin halving that occurred at the beginning of May might also have something to do with its sudden burst in revenue. The halving was the third time since BTC’s establishment that bitcoin mining rewards have been reduced and the currency has become rarer and less available for mass trading. The first time occurred in 2012. At that time, bitcoin mining rewards were being shelled out at 50 BTC, though the currency was considerably less in price back then. The halving brought rewards down to approximately 25 BTC.
The second halving occurred in 2016 and saw BTC rewards fall from the previous 25 to 12.5 BTC. This third halving saw rewards fall to 6.25. A lot was riding on the halving, and many enthusiasts saw the event as causing the price of BTC to reach new heights in the coming weeks, though for the most part, the event has been something of a dud, leading to virtually nothing at press time.
Block Fi, however, feels it has certainly benefited from the hype surrounding the third halving. It says that it saw more activity in the week leading up to the event then at any other point in its history. The company claims to have added more clients to its roster during this time than during any other week since the company was founded.
More Accounts Before the Halving Than Ever
Roughly 7,000 new accounts were created, meaning the company exceeded its growth rate for the period by approximately 25 percent. This puts Block Fi on track to earn roughly $50 million by the time 2020 ends. Zac Prince – CEO and co-founder of the company – explained in a statement:
The crypto financial services space is maturing, and we can see a clear turning point today where traditional finance is being outpaced by digital. Savvy veterans of the old guard will continue to look to alternative technologies and digital currencies to build what the next frontier of finance will look like.
The company’s expansion can also potentially be attributed to the release of a new Block Fi mobile app, which allows clients to open their own interest accounts. They can also trade between crypto pairs and borrow money against their crypto stashes. The app was released in a beta phase during the month of April, while a more enhanced version of the application was made available just weeks ago.