I’ve mentioned in previous articles that I believe Mogo Inc (NASDAQ: MOGO) is the Square Inc (NYSE: SQ) Cash App of Canada, and has the potential to see similar tremendous growth ahead.
Recent news surrounding the shortages of cash and coins associated with COVID-10, not just in Canada, but in the United States, have led to a push for the use of digital currency. Although most are moving to debit cards, many investors believe that this bodes well for the cryptocurrency space, outlining the need for a decentralized currency system.
Mogo is at the top of the list when it comes to beneficiaries from this trend as members of the Mogo App have the ability to purchase Bitcoin with incredibly low transaction fees. Not only is Mogo the only publicly traded company in Canada that offers consumers a way to buy and sell bitcoin, it does so at an incredibly competitive rate.
While the industry standard transaction fee is 1.5%, and the Square Cash App charges 1.75%, Bitcoin transaction fees on the Mogo app are just 1%, making the cryptocurrency more accessible than ever before.
The Need For Cryptocurrency Is More Clear Than Ever
Prior to cryptocurrency, the only anonymous form of payment was cash. However, carrying around large amounts of cash can be quite dangerous, as is the case with sending large amounts of cash.
A big part of Bitcoin is the blockchain; which is the techno-infrastructure that powers cryptocurrency. The result is a way for users to anonymously transact in a trusted and verifiable network. Not to mention, this network has never been hacked due in part to its decentralized protocol.
Now, the COVID-19 pandemic seems to be propelling the idea of Bitcoin and other cryptocurrencies into the future.
At the moment, the United States is struggling to give stores change as a shortage sweeps the country. At the same time, in Canada, the $50 bill is hard to come by as consumers seem to be hoarding these denomination bills as a result of COVID-19 fears.
Essentially, cash is falling apart, and that’s great for cryptocurrency. With Bitcoin, there would never be a shortage of change or bills because they simply don’t exist. The complete digital, yet anonymous, form of payment would shield the economy from these types of monetary shortages.
Perhaps, these shortages have played a key role in the growth of Bitcoin from around $5,000 per coin in march to a value today of over $11,000.
The Provision Of Low-Cost Bitcoin Access Is A Major Advantage For Mogo
Mogo offers a wide range of financial services, all of which are valuable. Aside from access to crypto, the company offers free credit scores, a free prepaid visa card that allows you to track your spending while offsetting your carbon footprint and a range of credit products. However, considering the current climate, the fact that the company provides low-cost access to Bitcoin is a major…