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You can actually lend your btc at a pretty good rate. Over 5% on BlockFi. Rates are lower on defi exchanges because there is a risk premium as people figure i
by trident1000 6y ago
You can actually lend your btc at a pretty good rate. Over 5% on BlockFi. Rates are lower on defi exchanges because there is a risk premium as people figure it out and actually borrow.
- ivanche 6y ago5% per year? 5% per month? 5% per week?
- trident1000 6y agoAnnual
- latchkey 6y agoCompounding too. You could also buy USDC (no fees through coinbase) and BlockFi pays 8.6% apy. Ally bank just emailed me that they are lowering the APY again. It is lowered almost monthly and is almost 0 now.
- christophilus 6y agoYou can also have BlockFI interest automatically go into BTC. So, you can DCA automatically by just letting your cash sit there.
- deleted 6y ago[deleted]
- vasilipupkin 6y agoright, but where does that interest come from? so SPY dividend comes from the stocks making money and earning cashflows. Bitcoin lending interest comes from people borrowing it to trade, a somewhat circular arrangement.
- trident1000 6y agoWho cares what people who borrow do with it. 5% or whatever is all I care about as an investor + getting my money back.
- vasilipupkin 6y agoOf course, just pointing out that this dividend doesn’t give bitcoin value, it exists when bitcoin has value. With stocks, the expected cash dividend is what gives them ultimate value.
- trident1000 6y agoYoure pointing out at this stage that btc is a non cash flow asset...yes most people know that. Same with oil and commodities and gold.
- mikhailfranco 6y agoThe 'interest' comes from lending your BTC to short-sellers. As always, where there's a return, there's also a risk.