Heard about this deal, I get it but you know what they say about if something sounds too good to be true.
On the other hand I found no information to sway me against it.
BlockFi pays 8.6% on some of the Stablecoins, USD Coin in particular is tied 1:1 and has US Dollars in reserve for all outstanding USD Coins. I stuck some money into this to test the waters, and am in fact getting 8.6% on my money.
Search it and read up if its of interest.
8.6% interest rate in 2021
Moderator: Global Moderator
- StrategyDriven
- Senior Member
- Posts: 135
- Joined: Thu Jul 09, 2020 5:58 pm
Re: 8.6% interest rate in 2021
In Western/Central Europe the P2P lending platforms enjoy a considerable amount of attention from small investors. They offer and promise the same and even bigger returns. It works nicely... until it doesn't... But OK there are disclaimers..StrategyDriven wrote: ↑Fri Feb 19, 2021 11:38 pm Heard about this deal, I get it but you know what they say about if something sounds too good to be true.
On the other hand I found no information to sway me against it.
BlockFi pays 8.6% on some of the Stablecoins, USD Coin in particular is tied 1:1 and has US Dollars in reserve for all outstanding USD Coins. I stuck some money into this to test the waters, and am in fact getting 8.6% on my money.
Search it and read up if its of interest.
- StrategyDriven
- Senior Member
- Posts: 135
- Joined: Thu Jul 09, 2020 5:58 pm
Re: 8.6% interest rate in 2021
And when you say until it doesn’t, do you mean that the high interest rate goes away or do you mean loss of capital?
- Mark Leavy
- Executive Member
- Posts: 1950
- Joined: Thu Mar 01, 2012 10:20 pm
- Location: US Citizen, Permanent Traveler
Re: 8.6% interest rate in 2021
Without knowing anything else about the fund... the only possible reason to pay 8.6% interest is to compensate for the very real risk of capital loss. It could be due to exchange rate fluctuations, volatility of the underlying, regulatory risk, lack of federal insurance, sketchy business practices...
But it all boils down to risk of loss of capital.
But it all boils down to risk of loss of capital.
- StrategyDriven
- Senior Member
- Posts: 135
- Joined: Thu Jul 09, 2020 5:58 pm
Re: 8.6% interest rate in 2021
Mark you are speaking speculation and conjecture, you clearly haven’t looked into this. Its basically a split of revenue they make lending, they give about 80% and keep 20%.
Re: 8.6% interest rate in 2021
Loss of capital. Following P2P market since quite some years and I know a bit of this and that. Behind those seducing interest rate numbers and all buyback guarantees, at the end there are just loan originators that can get under => 0 guarantee, 0 money back, simple as that. If you think of those lending platforms as market inefficiency that you are about to exploit, yeah, think twice.StrategyDriven wrote: ↑Sat Feb 20, 2021 10:32 am And when you say until it doesn’t, do you mean that the high interest rate goes away or do you mean loss of capital?