RE: Crypto Platforms Are Cutting Interest Rates, Why?

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RE: Crypto Platforms Are Cutting Interest Rates, Why?

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jfang003 in LeoFinance • 3 years ago

I played around with BlockFi and my balance there is less than 1 BTC. So I guess there will be less change for me. However I feel bad for the larger BTC holders who are seeing a reduced earning. Like you said, its probably due to the them needing to compete for the remaining loans but keep it economically feasible.

If they start reducing the interest rates for less than 1 BTC, then I will probably just pull out of the platform since I am more worried about their economic situation.

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3 years ago in LeoFinance by jfang003

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chekohler 3 years ago

If you have 1 BTC and up and you're not running the cantango trade or using on-chain multi-sig lending contracts like with HODL HODL then I'm sure it's because you don't care about yield

I mean even if you just split your 1 BTC across 2 or 3 platforms it would be a smarter choice! Big BTC holders aren't looking for 4-6% they locking in 30% spreads using futures

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jfang003 3 years ago

I don't have as much BTC as I still use the stock market. I haven't really tried the contango stuff or multi-sig lending contracts at all. I HODL some BTC and the other portion I put into BlockFi so I don't have to pay attention. I personally thought the business model makes sense after doing some research. Also they are based in the US so I expect my money to at least be partially returned back if anything went wrong. Though in the long term, I do plan to sell off half of my position in BlockFi to lock in profits and have a free ride.

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chekohler 3 years ago

If you're US based are you also doing stablecoins in BlockFi I mean the return is far better than the banks right? Should be worth it? I do some stable coins and then turn that interest into sats so I am not spending my base value, its basically free sats every month lol

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jfang003 3 years ago

I was debating about it but I haven't yet. That does seem like a good idea but I don't know about risking so much money on stable coins on Blockfi. I only spent a few thousand before to put it into BTC, but with the run up in price, I am at sitting nicely in the green.

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chekohler 3 years ago

Well if you take profits eventually you could park the profits in stable coins and collect the interest while you sit out any corrections! I don’t see a right or wrong way to play it just how much volatility you can stomach

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