How does a 9.3% savings account sound?

[bovie]

This is not entirely true.

Anyone that bought any crypto before the bull run in 2020 made a LOT of money (early adopters made 8-10 figs, but that's very very few ofc; late adopters (after 2017) likely made 7-9 figs; noobs starting in 2020 made 6-7 figs just speculating in any coins) - assuming you sold some of it and not round-tripped back to the start.

This is not entirely true, either.

You’re assuming these people made fairly large investments to have returns of those sizes, despite the percentage returns.

I think the vast majority of people made quite small investments, relatively. Certainly not enough to yield 7-9 figure returns.

[xraygoggles]

This has been a great learning experience for me. Thankfully, I didn’t put a dime in crypto. I worried I was missing out and it truly was different this time. I’m a relatively young investor (mid 30s, ~500k investable assets). I feel very vindicated seeing what happened with FTX. When I hear more mature investors say that they’ve seen this before, I have always wondered how I would do. I’m glad I lived through this gold rush without it hurting the balance sheet and feel more confident that I’ll be able to say no again next time.

Thanks to all the older/regulars on here who give sage advice. It matters.

This is not entirely true.

Anyone that bought any crypto before the bull run in 2020 made a LOT of money (early adopters made 8-10 figs, but that's very very few ofc; late adopters (after 2017) likely made 7-9 figs; noobs starting in 2020 made 6-7 figs just speculating in any coins) - assuming you sold some of it and not round-tripped back to the start.

[Tim]

This has been a great learning experience for me. Thankfully, I didn’t put a dime in crypto. I worried I was missing out and it truly was different this time. I’m a relatively young investor (mid 30s, ~500k investable assets). I feel very vindicated seeing what happened with FTX. When I hear more mature investors say that they’ve seen this before, I have always wondered how I would do. I’m glad I lived through this gold rush without it hurting the balance sheet and feel more confident that I’ll be able to say no again next time.

Thanks to all the older/regulars on here who give sage advice. It matters.

It is actually pretty simple.

• If someone is selling you something, it is in their best interest, not yours.WALK AWAY, just say no, hard stop, run.
• If you need something, shop for value. Go find it.

https://www.indeed.com/career-advice...sales-approach Bitcoin is "conceptual selling",no doubt about it. Educate yourself on sales pitches. Doctors are notorious for falling for things they don't need.

There is nothing wrong with advertising an marketing or brand development. That is how you attract customers.

Do you "need" highly speculative investments?
Do you "need" to move large sums outside of government interference?
Those are the only two "needs" I can think of for holding Bitcoin.
Any other reason (feel free to expand) is uncompensated risk and the benefit of someone else.

[VentAlarm]

This has been a great learning experience for me. Thankfully, I didn’t put a dime in crypto. I worried I was missing out and it truly was different this time. I’m a relatively young investor (mid 30s, ~500k investable assets). I feel very vindicated seeing what happened with FTX. When I hear more mature investors say that they’ve seen this before, I have always wondered how I would do. I’m glad I lived through this gold rush without it hurting the balance sheet and feel more confident that I’ll be able to say no again next time.

Thanks to all the older/regulars on here who give sage advice. It matters.

[jacoavlu]

Gemini and FTX.US also regulated in the US.

But the thing is - when ur lending out indiscriminately to other parties - most of whom are or will end up imploding - no amount of regulation can protect you from the shrapnel.

right. Point being it doesn’t hurt to try to be specific about what went wrong. Like we can do better than saying “it’s all a ponzi”

Luna Terra lol was a straight up ponzi

celsius and FTX kinda ended up there due to horrible risk management and fraud.

crypto.com verdict still out

Blockfi and Gemini are further down the spectrum somewhere

[xraygoggles]

Blockfi was and is a regulated entity. In NY which is generally pretty anti crypto (they went up against Tether). and they were fined by SEC. but none of those authorities ever said they were lying about how they were generating yield.

Gemini and FTX.US also regulated in the US. As is Genesis/Digital Currency Group.

But the thing is - when ur lending out indiscriminately to other parties - most of whom are or will end up imploding - no amount of regulation can protect you from the shrapnel.

Even Genesis, an institutional lending and custody platform for HNW users is pausing withdrawals right now, as is Gemini Earn.

[xraygoggles]

so what do we think of this nowadays...

Now - not so much, lol. Dead. All these platforms are run by degenerates who lever up and re-hypothecate BTC and other crypto, then lend it out to others. Repeat ad nauseum.

During the manic bull run - great idea.

[jacoavlu]

This is the part that doesn't age well, the Original Post

those stablecoins still have a value of basically $1.0. the stablecoins didn't fail. the platform did. of course you know this

I actually earned like $50k with interest but got out a while ago like a lot of people who pay attention did as I learned the importance of self custody

the tone of the post and the thread has been about discussion

maybe you should go back and redline edit your post about the same thing which was published a full year later?

[The White Coat Investor]

what was it that was said which has aged so poorly?

This is the part that doesn't age well, the Original Post

How does a 9.3% savings account sound? Sounded good, didn't age well.

01-15-2021, 08:57 AM
Clickbait title, kind of but not really Didn't age well

Stablecoins are cryptocurrencies that are designed to be stable, have minimal volatilty. This discussion centers around popular stablecoins USDT, USDC, and GUSD - these are designed to have a $1 price. Didn't age well


What intrigues me and immediately strikes me as 100% too good to be true, is a BlockFI interest account where you can deposit stablecoins and earn significant interest. USDC is paying 8.6%. USDT is paying over 9%. Didn't age well

I'm seriously considering taking the plunge a buying some purely to park for interest. That would have been a bad idea. Obviously there is risk, this isn't an FDIC insured account and there is no guarantee of return of principle. Didn't that turn out to be true.

But the stablecoin environment seems in my not-heavily-researched opinion to be reasonably mature so as to make the risk-reward favorable, compared to current alternative investment options for cash, with fixed income paying very little and an inflated equities market that feels very toppish. And for the grand finale, this was a total miss. Not nearly enough reward for the risk being taken.

[The White Coat Investor]

http://web.archive.org/web/202204252...vings-account/

The White Coat Investor you published this a full year after the OP of this thread

Yea, it was written 6 months before it was published, but yea. Pretty much what I said above.

[jacoavlu]

http://web.archive.org/web/20220425205714/https://www.whitecoatinvestor.com/crypto-savings-account/

The White Coat Investor you published this a full year after the OP of this thread

[jacoavlu]

I've been told that some of the stuff I've written about crypto hasn't or won't age well. However, I don't think I've ever written anything that aged as poorly as the OP in this thread.

While I knew there was risk there (nothing yields 9-10% without being high risk even if you can't see the risk) I'm pretty surprised at this meltdown. I thought this was probably the least risky way to invest in any sort of cryptoasset. Now I'm not so sure.

what was it that was said which has aged so poorly? I think we actually had some good discussion in the thread

That's the most frustrating part. The whole point of this space was that you didn't have to trust any sort of centralized authority. The latest failure isn't Bear Stearns, but it's still a billion dollars that people used to have.

this is why people like me like to say bitcoin, not crypto, and not your keys, not your coins. this thread had kind of died but if you follow the bitcoin thread I've talked a lot about the importance of self custody and trying to help people understand what I think are significant differences between bitcoin and everything else "in the space"

[The White Coat Investor]

I haven’t gone back and read from the beginning but if I did I’d guess it’s a good example of the fact sometimes there are opaque and not obvious risks and counterparties are never to be trusted particularly in “crypto”

That's the most frustrating part. The whole point of this space was that you didn't have to trust any sort of centralized authority. The latest failure isn't Bear Stearns, but it's still a billion dollars that people used to have.

[The White Coat Investor]

I've been told that some of the stuff I've written about crypto hasn't or won't age well. However, I don't think I've ever written anything that aged as poorly as the OP in this thread.

While I knew there was risk there (nothing yields 9-10% without being high risk even if you can't see the risk) I'm pretty surprised at this meltdown. I thought this was probably the least risky way to invest in any sort of cryptoasset. Now I'm not so sure.

[bovie]

Unrelated but also related: If you've never seen the movie Margin Call, it is a must-watch with a thrilling script and a bunch of great actors at the top of their game.