Simplifying Hive Bookkeeping
This morning, on the way to work, I listened to Ivan on Tech with news about the upcoming banking crisis.
Ivan generally does a good job of exploring the articles he reads and explaining the details that the writer may have left out for people who are unfamiliar with economics. The gist of it is that smart money is hedging against the looming insolvency of banks around the world. As you may know, banks have benefited largely from printed money by the government. However, with interest rates so low, there isn't much profit to be had.
In the meantime, in crypto world, there is news such as my favorite spending cryptocurrency, Dash, forming partnerships to attract Whales.
There is also the outstanding news about the massive success of DeFi.
Let's talk about DeFi for a moment. Decentralized Finance allows somebody with assets to put money away and earn interest on their investment. On the other side of that, it allows people to borrow against their crypto to avoid having to cash out their position and face tax consequences. DeFi behavior is very different from what we have traditionally seen in crypto, which is trading.
For so long, the only game in town was trading crypto, which people have done to no end. With DeFi and now other services like Celsius, BlockFi, and Crypto.com's Earn, people have a place to park their money and earn some passive income, which currently pays higher interest than banks.
On the one hand, you see failures and doom. On the other, you see success and optimism. Even if you only ever buy stablecoins and earn interest, you are in a much better position than the traditional saver. Those elderly people who survive COVID-19 will find their retirement funds trashed over the next few years. Watching all this unfold is like being in two different worlds.
Posted Using LeoFinance