On January 21st, during the North American Bitcoin Conference in Miami, BSAVE announced its Bitcoin savings account for Coinbase wallet users. This new feature allows Coinbase clients to receive daily interest payments.
“BSave is a very unique service. I have been part of the beta platform receiving daily interest and have been asking a lot of questions about the model. The most important question moving forward with any service like this is counterparty risk. In these early stages it is a great service with a great interface and a realistic model for generating the interest in the background. Their big challenge now will be winning trust as deposits grow and building a transparency model to audit deposits with the Blockchain similar to what Uphold has built”, said BnkToTheFuture Co-Founder and Bitcoin Capital Fund Manager Simon Dixon.
The North American Bitcoin Conference focuses on the latest innovations and also provides an important access to the people and technologies that are redefining the world of digital payments.
This is not the only service that provides interest on Bitcoin. In fact there are many more platforms that want to give users the same advantages you can receive from a normal bank.
Bitfinex loans
They provide a peer-to-peer market for margin trading loans. You can choose how much money you want to lend and set your rate and then you can place your offer.
Unfortunately those loans are very short-term and the market rate varies so this option needs active maintenance to ensure that you will be able to lend out much of your alloted capital at the best rate available.
Patrick Drugan said:
“Their rates are the core reference right now. It’s a simple job: you go to the Margin Funding tab and move USD/BTC/LTC to that wallet, then pledge the funds at some interest rate, get the yield credited at midnight each day.”
Joel Cano, COO at MeXBT commented:
“I believe that projects such as Bsave are the stepping stones to gain mass-adoption. You know, we are sitting in a great technology, but if we want to succeed we need to find real financial problems and needs from customers and integrate our technology with the legacy systems around us. I believe savings is a great value proposition to gain new customers for Bitcoin. The real challenge for Bsave, or any other player in the bitcoin space like us. Is to create a sustainable business model based on the advantages of technology, but making sure we are prepared for the regulation that is coming.”
Meanwhile, Jonathan Azeroual, CEO of BSave, said they want to integrate their system with as many wallets as possible to expand their market, for example in Asia.
Bsave algorithms has been developed to optimize the number of bitcoin and the rate they lend and the algorithmically-calculated interest will be paid on balances stored with the service, each day.
The interest earned is the score of the client divided by the total score times the total interest earned for one day.
Editor`s note: Regarding our article about the partnership between BSave and Coinbase we have to write an ERRATA CORRIGE.
As you can read on the article we previously spoke with Jonathan Azeroual of BSave, so we had a chat about this topic and this is the reason why we wrote those things in the article. But today we finally received an email from Azeroual himself and we can confirm it was a misunderstanding.
This is Azeroual explanation: “After months of using Coinbase’s API during our beta phase, in addition to positive contact with them at the moment of and shortly after our launch at Bitcoin Miami, Coinbase let us know that we no longer had access to their API. Within five minutes of the news, the team began the hours long process of migrating our service and furthered strategic talks with other wallet providers. We worked day and night to quickly and securely provide a new solution for our customers and beta testers. Now, any bitcoin hodler is able to withdraw, deposit, and earn interest! We are confident our service will be completely updated by next week with many new features including 2 factor authentication, plus we have some fantastic partnerships in the pipeline. We understand how things can change in the blink of an eye, and you have no other choice but to get right to work and make it even better than before. I'm confident we'll be better off by having to push ourselves through these changes, and BSave will excel even more now”.
Our apologies, Amelia Tomasicchio