Clickbait title, kind of but not really
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.
There are lots of sensible reasons why stablecoins exist, mainly to have a stable "digital dollar" that exists in the same world as other crypto assets like Bitcoin. No bank account required. Anyone in the world can park funds in a designed-to-be-stable assed pegged to the US dollar, move those funds around the world, move those funds into and out of other crypto assets, and stay "on the rails" of the crypto system as opposed to having to off ramp to USD in a bank account, which for many outside of the US may not be a possibility.
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%.
At this moment, USDT is trading at 0.998371 and USDC 0.999887.
BlockFI is one of these crypto neobanks where you can buy crypto, earn interest on crypto held there (whether you purchase there or elsewhere and transfer it in), and take out fiat loans against deposited crypto assets.
I'm seriously considering taking the plunge a buying some purely to park for interest. Obviously there is risk, this isn't an FDIC insured account and there is no guarantee of return of principle.
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.
So let's discuss.
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.
There are lots of sensible reasons why stablecoins exist, mainly to have a stable "digital dollar" that exists in the same world as other crypto assets like Bitcoin. No bank account required. Anyone in the world can park funds in a designed-to-be-stable assed pegged to the US dollar, move those funds around the world, move those funds into and out of other crypto assets, and stay "on the rails" of the crypto system as opposed to having to off ramp to USD in a bank account, which for many outside of the US may not be a possibility.
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%.
At this moment, USDT is trading at 0.998371 and USDC 0.999887.
BlockFI is one of these crypto neobanks where you can buy crypto, earn interest on crypto held there (whether you purchase there or elsewhere and transfer it in), and take out fiat loans against deposited crypto assets.
I'm seriously considering taking the plunge a buying some purely to park for interest. Obviously there is risk, this isn't an FDIC insured account and there is no guarantee of return of principle.
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.
So let's discuss.
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