NZ cryptocurrency platform secures government investment

by Ksenia Stepanova31 Oct 2018

The government’s investment arm has approved a Project Grant of $330,000 for Vimba – formerly MyCryptoSaver – a cryptocurrency savings and trading platform.

Vimba began as MyBitcoinSaver in 2014 where it offered a method of investing small weekly amounts in Bitcoin, and the business now has over 5,000 users investing into almost $6.5 million worth of the cryptocurrency.

Vimba says the investment from the government’s investment arm Callaghan Innovation is “a real show of faith in the future of this very exciting asset class.” Though volatility remains a cause for concern, the platform uses a dollar cost average approach to ride the long-term increase of Bitcoin value, rather than its volatile short-term fluctuations.

“Even over the past year, in a bearish crypto market, our user base has remained very stable,” said Vimba CEO Sam Blackmore. “This shows that our user base shares the same long-term view of crypto and blockchain more generally as we do. It’s still a very nascent technology with tremendous potential.

“We believe Bitcoin will at least reach the market cap of gold as it is a more efficient, more accessible, more secure vision of that rare asset. For it to reach the market cap of gold, one bitcoin would be worth around $600,000 – more than 60 times what it’s worth today. Some people ask whether the crypto ship has already sailed and whether it’s too late to start investing, but when you take the long term view, it’s clear this is still just the beginning.”

Purchasing property with cryptocurrency is a trend that is increasingly surfacing on the radars of homebuyers, the main draws being low fees, heightened security and near-instant transactions. Bitcoin is already a major form of currency in Japan, and according to crypto investment fund Surge, property investors are making solid profit by paying with cryptocurrency.

“If a buyer can pay for a property upfront using their cryptocurrency, then it’s going to be a growing trend,” said Surge owner Gary Ng. “Longer term, we’re moving towards a cash free society. I think there are more and more property investments being sold in crypto – it’s very attractive.”

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