If you're earning 6% to 10% interest on a stablecoin, how do you plan to beat inflation and then grow financially? Stablecoin lending is not for the poor. It's most suitable for rich people who just want to "keep" or leverage their wealth. They lend their stablecoin and use it as collateral to collect loans which they now use for investment. That way, their capital is secure and earning interest that can offset inflation. while they make more money with the loans taken. But your $1000 earning 6% interest would worth exactly the same if not less 1 year from now due to inflation. Or I'm I missing something? #cryptocurrency #crypto
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2 comments
No I think you nailed it.
I agree, but some of these folks may be moving from a savings account at a bank. Getting 6% on a stablecoin is much, much better than whatever banks are paying them now.