Bitcoin trading companies saw an influx of new users throughout 2017. Given the cryptocurrency craze that is going on even today, the number of users will only continue to increase. For Genesis Trading, this influx of new users is due to a very different reason. Its decision to introduce Bitcoin lending services has proven to have been extremely smart in hindsight.
Genesis Capital Lending Services
It is evident there is a bright future ahead for cryptocurrency-related lending services. Due to the global appeal of these currencies, they are suited for financial inclusion, among other things. While Bitcoin is currently in a slump in terms of its price, the demand for this currency will not be slowing down anytime soon. Genesis Trading sees a lot of merit in this currency, especially for global lending purposes.
This company initially made a name for itself in the world of cryptocurrency trading. When it launched the Genesis Capital subsidiary to focus on Bitcoin-related lending services, there was initial interest from customers all over the world. The company has close to $100 million in outstanding loans as we speak, which is quite a milestone for a service which only launched fairly recently.
This is mainly due to Genesis Capital’s solid reputation in the world of cryptocurrency trading. Since launching back in 2015, its venture has been quite successful, and it is evident the parent company wants to keep expanding its presence in the cryptocurrency markets. As of right now, cryptocurrency loans are seemingly in high demand, yet there are very few companies which provide a reliable service in this regard.
One of the companies that made a mark in the Bitcoin lending space was known as BTCJam. Unfortunately, the company garnered a bit of a bad reputation due to not enforcing proper legal measures to force users to repay the loans they took out initially. Although most issues were resolved in the end, it quickly showed the entire world that there was still some work to be done when it came to issuing Bitcoin-related loans.
What Genesis Capital has done differently is issue loans worth $100,000 or more in various cryptocurrencies. Rather than just focus on Bitcoin itself, the company also focuses on Ethereum and Bitcoin Cash. The company’s clients include major names such as BlockTower Capital and DV Chain. It is evident there is a growing demand for cryptocurrency loans all over the world, yet it remains to be seen how Genesis Capital will fare.
One can use this service for reasons other than to borrow money. Some investors will use the features provided by Genesis Capital to express their bearish views on particular cryptocurrencies. Being able to borrow Bitcoin to short BTC, ETH, or BCH, for example, is a venture some companies will eventually look into. Whether or not that is a commendable use of such a potentially powerful service is up for debate, though.
In the end, no one can deny the Bitcoin lending industry appears to be firing on all cylinders. Whether or not this means we will see positive cryptocurrency market momentum in the near future is difficult to gauge right now. Getting involved in cryptocurrency for whatever reason is always a positive choice, although its long-term consequences may not be apparent for quite some time.