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> but compare that to 0.5% earned at Goldman Sachs or traditional FDIC insured bank accounts Why on earth would you compare it to those rather than an index tr
by peteretep 5y ago
> but compare that to 0.5% earned at Goldman Sachs or traditional FDIC insured bank accounts
Why on earth would you compare it to those rather than an index tracker?
- Clewza313 5y agoBecause the increase in a share's value is tied to a company's profits and losses, while the increase in a cryptocurrency's value is tied to hot air and memes (exhibit A: Dogecoin).
- G3rn0ti 5y agoBecause an index tracker exposes you to the risk of falling indices. Using a solid stable coin (DAI) and earning yield using an established lending platform (Compound or AAVE) or liquidity pool (Curve) does not. However, these new financial tools of course have other inherent risks but they are probably smaller than exposing oneself to the wildly fluctuating Bitcoin price.
- peteretep 5y ago> a solid stable coin … established lending platform I think we are probably eons apart on the meanings of the words “solid”, “stable”, and “established” here.