We are right now starting to see the first Cryptocurrency Fixed Investments.
They include things like this:
They are promising ~6% interest for bitcoin accounts that choose to lock up for ten years.
Looks cool. Except we are no longer dealing with a decentralized currency anymore. We are dealing with a debt that is being held at a bank. This is not a bank that is insured by anybody like FDIC does for fiat banks and the SPIC does for stock brokers.
How exactly do these BlockFi people plan on making our crypto grow? By lending it likely at a higher interest rate to people who probably cannot receive a normal fiat loan or to someone who really hates cryptocurrency.
Once again, I am a fan of litecoin. The code has withstood the test of time. To be able to invest in BlockFi I have to also be a fan of BlockFi and believe that unlike our secure open-source mathematical code, the human beings at BlockFi can make the right decision on to whom to loan money to over and over again.
BlockFi is a bank using cryptocurrency. That does not mean that it is a good bank. Do your own research.
Here is something to think about on the other end:
To be continued...
Originally from Litecoin https://ift.tt/3aJFoqn
Litecoin, the leading cryptocurrency derived from Bitcoin. Litecoin is developed with a focus on speed, efficiency, and wider initial coin distribution through the use of scrypt-based mining.