BC businesses benefit from running a Bitcoin bull – Technology

Vancouver fintech Mogo Inc. reports sharp rise in opening of Bitcoin accounts on its platform since the value of the cryptocurrency started rallying last year | peterschreiber.media/iStock/Getty Images Plus

While Bitcoin has always had a volatility in flow, investor interest in the cryptocurrency has been steady lately as its value is flush with levels as high as US $ 40,000.

It is a trend that works for the benefit of CICs that facilitate transactions.

As the value of the cryptocurrency soars in 2020, Mogo Inc. noted. (TSX; Nasdaq: MOGO) of Vancouver reported a 108% spike in Bitcoin accounts opened on the company’s fintech platform.

Mogo started as a fintech specializing in lending money to young people through electronic transfers. Three years ago, shortly after the Bitcoin bull run in 2017, Mogo launched its own Bitcoin products allowing consumers to buy and sell in real time.

While the value of Bitcoin disappeared after 2017, it began to surge again in 2020.

And by November last year, Mogo reported a monthly 135% increase in the dollar amount traded on its platform. This came after Vancouver’s fintech reported a 237% increase in Bitcoin accounts in the third quarter of 2020 compared to a year earlier.

Mogo president Greg Feller declined a request for an interview from BIV to discuss how the company has benefited from the latest bull run – shares were trading at $ 5.07 to open 2021, up from $ 3.41 a year earlier, but in statement said the growing interest in Bitcoin is attracting new members to Mogo’s broader platform.

“While it is early days for this asset class, we see Bitcoin as a great long-term opportunity to drive member growth, engage all our products, and ultimately member monetization,” he said.

In 2018, CEO Dave Feller – brother of Greg Feller – told BIV that he compared Bitcoin to the “millennial version of digital gold” that consumers would like to invest in as they would a stock.

Entrepreneur Michael Vogel, founder of Netcoins Inc., said. from Vancouver, part of the renewed interest in the cryptocurrency can be attributed to yet another BC company.

Last spring, the Canadian e-commerce giant unveiled Shopify Inc. (TSX: SHOP) would start processing cryptocurrency payments through CoinPayments Inc. by Vancouver (The company, now incorporated in the Cayman Islands, declined a request for comment.)

“People could now spend cryptocurrency on Shopify stores, which was huge,” said Vogel.

This development came as PayPal Holdings Inc. (Nasdaq: PYPL) is hugely prepared to facilitate Bitcoin transactions as well.

Netcoins Vogel also allows users to buy and sell bitcoins and other cryptocurrencies.

It got its start in 2014, around the time Vancouver was gaining a reputation as a hotbed for Bitcoin activity.

The city was home to the world’s first Bitcoin ATMs – one located inside a coffee shop in the city – and Vogel saw an opening to develop even more tools on the market for virtual currencies.

“We wanted to make it easy for people to buy Bitcoin in Canada, and it wasn’t really at that point,” said Vogel, who diverted his remaining Netcoins assets in 2019 following the sale to another company.

He now serves as CEO and founder of Encore Ventures.

“The business model was pretty boring, but the technology behind it was really interesting,” said Vogel. •