Recently, I have signed-up in this great crypto lending platform that gives you an edge over traditional banking with a usual savings account that earns a pitiful amount less than 1% a year. For me this is kinda mind boggling and revolutionary in the bitcoin and the entire crypto space as I am a HODLER and never seen anything like this before.
Everybody no longer need to liquidate his/her crypto holding and sell in exchange for fiat currency like US Dollars and Philippines Pesos as everybody can now use crypto such as Bitcoin as a collateral to secure a money to finance some real estate loan, car loan or credit card bills.
Simple vs Compound Interest??? Which way you wanna lend your money? Well, everybody will choose compound interest over the other as it will give us more leverage in multiplying our income.. Remember the 8th Wonder of the World of Albert Einstein? Yes, "compounding" that's the most powerful discovery ever in the history of finance..
But what's the catch? Your deposits are not guaranteed by FDIC. Though, they promise to indemnify the crypto HODLER or the depositor first which is "us" before the owners and the employees of BlockFi. That sounds a bit risky. Nevertheless, taking a risk is better than putting your savings in a bank which has a guarantee of losing its purchasing power over time. https://blockfi.com/?ref=paguirigan