Cryptocurrency
This Company Helps Bitcoin Millionaires Unleash Their Fortunes via @wsj
As reported by The Wall Street Journal, “Dave Carlson recently wanted to borrow about $1 million to fund operating expenses at Giga Watt, his cryptocurrency-mining operation based in East Wenatchee, Wash. The mining, which generates new units of cryptocurrency using specialized computers, requires vast amounts of electricity; Carlson said he spends about $250,000 a month on […]
As reported by The Wall Street Journal, “Dave Carlson recently wanted to borrow about $1 million to fund operating expenses at Giga Watt, his cryptocurrency-mining operation based in East Wenatchee, Wash. The mining, which generates new units of cryptocurrency using specialized computers, requires vast amounts of electricity; Carlson said he spends about $250,000 a month on power. He could have exchanged some of his crypto for cash, but he didn’t want to miss out on future surges in value.
“For Carlson and other cryptocurrency investors, this is the conundrum: They may be millionaires, but very few businesses accept bitcoin, Ethereum or other digital currencies. People who own crypto typically exchange it for U.S. dollars to make purchases, missing out on potential value increases, paying hefty fees or incurring capital-gains taxes.
“For a small number, a fledgling lending platform has provided a solution. The Denver-based startup Salt matches borrowers with lenders that provide high-interest loans backed by digital currencies. Clients transfer their digital holdings to an account overseen by Salt, which keeps the funds as collateral in exchange for U.S. dollars, typically up to 40% of the crypto’s current value. When the loan is repaid, Salt transfers the digital currency back to the borrower. While Salt is only about a year old, digital-currency insiders say such platforms could ultimately unleash the billions of dollars of value trapped in cryptocurrency into conventional markets.”