Earn Interest on your Money Again, With Cryptocurrency
Earn Interest Again
Currently, and throughout my entire adult life, savings rates at a bank have never been very incentivizing to save. My personal bank is now offering me a rate of .01% return on my money, which nets me $1 a year for every $10,000 saved. Ironically, this is at least better than where people say we’re headed, which is negative interest rates. Meaning, the bank will simply charge you a fee just for putting your money in the bank, which discourages saving even more.
This continuous decline of savings rates is directly a result of the consistent and ever more rapidly diminishing value of the US Dollar due to its infinitely expanding supply being printed by the government. Thankfully, with a reintroduction to sound money, which is finite in supply by nature, real interest rates can reemerge into the market as demand for the scarce asset rises and that is exactly what is happening with Bitcoin and cryptocurrency.
New crypto banks and protocols are emerging now to provide lending and savings rates on these new assets.
Personally, I find the idea of earning compound interest on a rising asset class quite appetizing.
The following is a short, evolving list of interest-bearing crypto providers:
I’m a big fan of blockfi. They offer savings rates of 8.6% on stable coins, 6% on BTC, 5.25% on ETH, and 5% on LTC. I’ve been using them since spring of 2020 and they’ve been very professional, very easy to use, and very secure. The Winkelvoss twins are a part of Blockfi’s success, providing highly regulated custodial services for the assets. Soon, they will be releasing a Visa credit card offering 1.5% BTC back on all purchases.
Another cryptobank and app gaining a lot of traction. I have not used this yet, but there’s even more options for assets and products. They also offer interest rates comparable to Blockfi’s.
Coinbase is offering 2% on the DAI stablecoin protocol and .25% on their USDC stable coin currently.
Defi
Decentralized finance is going to explode onto the scene soon. It is the wild west of interest, lending, yield returns, and financial experimentation. There’s so much work to be done in this space, but currently you can lend, earn interest, provide liquidity as a marker maker and take fees, and even enter a no-loss lottery system. This is all done by you interacting solely with a protocol and no corporate middleman facilitating or regulating the transactions. It’s the next step in where this revolution is heading.
My Bank vs Blockfi Rates:
