The truth about earning interest on your Bitcoin

I just realized this, Yeah many of you must already know and think this is obvious, but I've never seen anyone talk about this so I'll post It anyway.

The truth is the bitcoin you put in a savings account is being loaned and being used by short sellers, there is no other use for borrowing Bitcoin with a collateral other than shorting It. So if you think that by holding your Bitcoin in an exchange savings account you are doing your job as a holder, think again. It is quite obvious when you think about It, your Bitcoin is being actively used by short sellers to short Bitcoin, in the best case scenario you are just making their loans cheaper.

So If you are a true Bitcoin maximalist and believer, you will take all your Bitcoin out of any exchange or lending platform.



Submitted January 27, 2021 at 06:51PM by AtlasNCz https://ift.tt/3aarrRM

Comments

Post a Comment

Popular posts from this blog

Coinmarketcap are listing BCH sites as BTC

Under here: https://coinmarketcap.com/currencies/bitcoin/ They have links to https://bitcoin.com/ and https://forum.bitcoin.com/ which are no longer BTC sites; they're BCH sites. I'm not good at twitter and don't have many followers but I've tweeted at them here: https://twitter.com/bitplane/status/955918445014585344 Can we raise awareness of this and get them to change it please? Submitted January 24, 2018 at 02:47AM by david-song http://ift.tt/2DtOW70
Read more

15 years of BTC Power Law

5 years ago I made a post in this subreddit showing that BTC is a power law: Price=A*days^n, (days from Genesis Block), n=5.8. Many didn't believe me and said the past doesn't predict the future. Well, after 5 years it turns out that BTC continues its power law behavior with similar exponent. A power law is not another formula or model but the same mathematical behavior behind river formation, mountains growth, cities development, GDP vs population, and metabolic rate. Everything important is ruled by power laws, so BTC. BTC is a force of Nature. Here is the original post: https://www.reddit.com/r/Bitcoin/comments/9cqi0k/bitcoin_power_law_over_10_year_period_all_the_way/ https://preview.redd.it/ygtk3bb1fkac1.png?width=3211&format=png&auto=webp&s=46261e53d34b1d904f72eaf159cfaaf2999290ba ​ Submitted January 05, 2024 at 11:26AM by Econophysicist1 https://ift.tt/sdnkAoG
Read more