Income from Cryptocurrency
Interest Rates Are Near Zero
We are now in a near zero interest rate world. And central bankers can't agree on when that's going to change. Just that it's not going to be any time soon.
The traditional, centralized game means the more conservative you are as an investor, the more you’re going to keep getting punished for just trying to save.
But There's a New Game in Town
A whole new financial architecture is springing up to better serve the needs of the people, not the 1%.
And a big part of this emerging system is a new free market for income you can dip into at any time. To help you get your savings to do more work for you in a world where income is very hard to come by.
It is now possible to make an income from certain cryptos.
Because this is so new, it isn’t the same as putting money in the bank (Although it is, in fact, headed that way). But because it's so new, there are added risks. Which, of course, is always the case when there's potentially a higher return.
The blockchain and DeFi (Decentralized Finance) has made it possible to have a borrower and a lender, but no middleman. The market determines the appropriate interest rate.
And it’s taking off like wildfire.
These new peer-to-peer models are now stripping value away from those traditional old game intermediaries when it comes to income.
There's a whole new ecosystem that very few know about yet. A bit like the Matrix 🙂
Cryptocurrency networks, supported by blockchains are really good for transferring money super-fast, super-cheap, to anyone in the world.
And no one else needs to be involved. No one can stop you and transactions settle in minutes (not days or weeks).
It's a self-custodied model. You’re in full control of your assets at all times.
Now people have started using this system for INCOME.
It’s mostly due to the meteoric rise of stablecoins — set up to maintain a more stable value and, in many cases, a great, reliable income. The combined market cap of stablecoins like Terra and USDC more than quadrupled in 2020. More of these passive income opportunities are coming into play each month.
As the Harvard Business Review puts it:
‘Cryptocurrencies have long been heralded as the future of finance, but it wasn’t until 2020 that it finally caught on to an old idea: making money with money.’
With returns on deposits with banks at a little over zero, decentralized income is coming out of the fringe and into the mainstream at a hyper-speed pace.
Even the very best bank deals right now would take you a century to double your money.
This is a way to get compensated for owning cryptos and it has multiple benefits:
- Lower transaction fees. With some cryptos, like ether, you incur a gas fee when you transact. But these are minute compared to fees charged by banks.
- Full access to your funds at any time, and total control over them.
- It means you can potentially get big capital appreciation (if of course their value increases) WHILE you’re getting outsized income.
- It means what you earn is NOT dictated by who you bank with and central banks.
- Above all, it means the interest you get on your money is multiples higher than what you’re getting from the banks right now. I mean way higher. Although the returns on offer are subject to greater volatility compared to banks.
Returns on stablecoins currently range from 16% to 31% and higher.
And, of course, there's the possibility of the coin itself increasing in value at the same time as you're earning an income from it.
Or it might decrease. That's the risk you take.
For more information, have a look at Cryptos That Earn an Income.