The mainstream of financial services is struggling to catch up with the business of popularising a world that’s still seen as arcane – even with Bitcoin, which hit a new peak of $50,000 this week – at its centre.
Cryptocurrency wallet provider Blockchain.com has raised $120 million in funding from a host of macro investors, including Google Ventures.
Moore Strategic Ventures, Kyle Bass, Access Industries, Rovida Advisors, Lightspeed Venture Partners, Lakestar, and Eldridge all joined the round.
In a blog, Blockchain.com CEO Peter Smith says the firm has now seen over 65 million crypto wallets created in more than 200 countries. “And,” he claims “28% of all Bitcoin transactions since 2012 have occurred via Blockchain.com, representing billions in transaction volume”.
With bitcoin smashing through the $50,000 barrier this week, Smith says there is currently “immense optimism about cryptocurrency from serious, institutional investors”.
At the same time, he claims that wider public support is down to unprecedented distrust in traditional financial institutions and that: “More than ever before, crypto begins to seem like the real Robin Hood of finance.”
Concludes Smith: “It’s time to bring billions of people into crypto and millions of institutions around the world. It’s time to build a financial system for the internet.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.