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right, but where does that interest come from? so SPY dividend comes from the stocks making money and earning cashflows. Bitcoin lending interest comes from p
by vasilipupkin 6y ago
right, but where does that interest come from? so SPY dividend comes from the stocks making money and earning cashflows. Bitcoin lending interest comes from people borrowing it to trade, a somewhat circular arrangement.
- trident1000 6y agoWho cares what people who borrow do with it. 5% or whatever is all I care about as an investor + getting my money back.
- vasilipupkin 6y agoOf course, just pointing out that this dividend doesn’t give bitcoin value, it exists when bitcoin has value. With stocks, the expected cash dividend is what gives them ultimate value.
- trident1000 6y agoYoure pointing out at this stage that btc is a non cash flow asset...yes most people know that. Same with oil and commodities and gold.
- mikhailfranco 6y agoThe 'interest' comes from lending your BTC to short-sellers. As always, where there's a return, there's also a risk.