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21 sats \ 2 replies \ @0xbitcoiner 8 Nov 2023 \ on: Would you loan your bitcoin to a TradFi bank (BofA, Chase, etc.) for yield? bitcoin
Profit comes from the price increase, it cannot come from lending, even if you keep the private key. You don't know what your satoshis will be used for. As far as I know, this is not possible in Bitcoin, but it is in Cardano.
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0 sats \ 1 reply \ @bitcoin_rationalist OP 8 Nov 2023
What i'm asking is this- let's say Chase says "Hey @0xbitcoiner, tie up some of your bitcoin with us (you hold your own keys) so we can make loans using your BTC as collateral. We'll pay you 10% APR in $USD which would be deposited into your checking account, or savings or whatever. You can use the yield to do whatever you want... even if that's buy more BTC."
Does that make sense? Your bitcoin would still be appreciating in price because it's bitcoin, but you would be making it work for you by collecting the interest from Chase.
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21 sats \ 0 replies \ @0xbitcoiner 8 Nov 2023
I get the economics of lending money, but I'm not lending my satoshis to anyone. Haahaha! :)
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