Bitcoin News
By Dan Saada
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How do people earn yield outside of Bitcoin? What is yield and how do people earn yield in traditional capital markets right now?
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So, this should be like I lend someone 10,000 dollars to start a business. They pay me back and they owe me a certain amount of interest.
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It is very high risk and you want to be paid back sooner for the risk that you are taking on for your principle on your original amount you lent out.
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And, you are hoping that you have assessed the risk properly, to where your return will outstrip the risk that you have taken that is the case in any investment.
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Summation of what yield ultimately represents: Yield is the monetization of tailed risk. So, we look at the risk at the default of a loan.
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So, that is what yield is at a high level. With Bitcoin, there is a lot of different ways to earn yield.
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And, each on has its own tradeoffs that make it more palatable for some people and there is no free lunch in this world and there is always tradeoffs with everything that we do.
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When did you first start earning yield on your Bitcoin? Back in 2019. So, it has been almost 2 years. I am one of those first folks right up.
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