A lot of innovation is taking place in the world of cryptocurrency as of right now. LedgerX, a well-known asset management platform, is the first to offer a Bitcoin savings account to the masses. This venture is fully regulated by the CFTC and will target consumers looking to buy and hold cryptocurrency in a safe and secure way.
A Smart Decision by LedgerX
Bitcoin companies have to come up with new and innovative ways to get consumers excited about cryptocurrencies. So far, this has been an ongoing battle, even though the momentum is shifting in favor of cryptocurrency, albeit ever so slowly. It is a painstaking process and one that will not necessarily become easier anytime soon. That is, not unless LedgerX has a say in it.
This cryptocurrency asset management platform is heading in an interesting direction as of right now. While it has been clear for some time that the company wants to make cryptocurrencies more accessible, few people expected the firm to launch a Bitcoin savings account. Its new venture is not just a custodial service, but rather a CFTC-regulated savings account for consumers looking to buy Bitcoin and hold it long-term.
What this means is that LedgerX now allows investors to earn interest on their Bitcoin holdings. Similar to how traditional savings accounts work, the new Bitcoin savings account service incorporates a call overwrite. It is a feature accessible to all users, although not a mandatory function by any means. Investors can deposit Bitcoin to LedgerX and sell a call option at a later date with a higher strike call option. It is a very popular service in the financial world today, and will seemingly gain traction in the cryptocurrency world as well.
Although that is an ‘advanced’ feature, LedgerX is making it a lot more accessible in the form of a point-and-click function. Those who are bullish on Bitcoin long-term will reap the benefits of this method, as their existing portfolio will slowly appreciate in value and users selling the option will earn a premium amount. It is not a method which is useful to everyone by any means, although there seems to be interest in the venture already.
Considering that the CFTC is seemingly cracking down on Bitcoin services, this new development offers some hope to the industry. A lot of unlicensed companies are providing cryptocurrency services, yet users are not protected if anything goes awry. LedgerX provides an additional layer of security to users, which can only be considered a positive development. It is also a clear indication that the cryptocurrency industry continues to mature.
The bigger question is whether or not this will lead to more long-term Bitcoin holders in general. If it does, Bitcoin’s price may experience an uptrend in the future. The majority of its volatility is due to short-term trading, which is still the preferred method of trading for speculators. More mature investors are looking at the bigger picture, which indicates that holding Bitcoin for the long term still yields better results.
You may be interested
Elon Musk under Fire: Why GM Could Pass Tesla as Most Valuable US Car MakerBrian Evans - Jan 18, 2019
Billionaire Elon Musk must be feeling the heat now that General Motors appears on track to surpass Tesla to become the most valuable US car maker for 2019.…
Linux-Targeting Cryptojacking Malware Disables Cloud-Based Security Measures: ReportBrian Evans - Jan 18, 2019
New report reveals a cryptojacking virus targeting Linux servers has the ability to disable cloud-based security measures to avoid detection
Overstock’s Patrick Byrne Says tZERO Will Launch Next WeekBrian Evans - Jan 18, 2019
The tZERO security token trading platfrom will go live next week, says Overstock.com CEO Patrick Byrne.