Banking Interest On Parked Bitcoin

almost 4 years ago

It is without question that using money to make money is one of the best strategies for building wealth. On top of that, being a speculative investor in Bitcoin provides a new roadmap to wealth like never before.

As Bitcoin becomes more popular, various Financial Enterprises large and small have introduced new investment vehicles for Crypto Currencies. One Financial Platform that has recently grabbed my attention is called BlockFi.

BlockFi offers many Crypto Services, including BlockFi Interest Accounts. These accounts allow people to securely deposit their Crypto Currencies and earn up to 8.6% annually. The BlockFi Interest Account for Bitcoin offers a 6% annual return, the account which awards 8.6% annually is for PAX.

I would consider myself a curious investor, so I decided to test this out with some Bitcoin. A little over a week ago, I deposited $500 (.056 Bitcoin at the time) and so far have received $0.76 in accrued interest. The fantastic part about this investment is the 6% annual interest is based off the price of Bitcoin, not my USD. I did some rough math and made some estimations below if you want to check it out: I estimated that I have made about $.70 in a week, if you multiply that by 4 you get $2.80 that I am making per month. Now take $2.80 and multiply that by 12 for the yearly earnings, it comes out to $33.60. This calculation is also not considering the fact that Bitcoin’s price will most likely rise in the months to come.

Hopefully my math wasn’t too difficult to follow up above. The bottom line is that using money to make money is critical for building wealth. And now, you can use Crypto Currency to do this. Using the astronomical returns of Crypto Currency combined with the calculated interest from investments like a BlockFi Interest Account seems much more logical than many traditional investments.

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9 comments

@khaleelkazi 81

almost 4 years ago

Happy to see you back :)

Blockfi is definitely an interesting project. I recently deposited some BTC there as well to accrue interest. Despite the recent leak of user data, I still think there's a decent use case for having a small portion of your total crypto holdings earning some interest in a blockfi account.

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@purefood 63

almost 4 years ago

Hey, I am sorry for my late reply. Thanks for telling me about the user leak, I had no idea. I have actually just found more functionalities on BlockFi like Trading, Loans, Etc... Please keep me updated on your findings with BlockFi.

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@taskmaster4450le 80

almost 4 years ago

Keep growing the bags.

The tendency is to look at things through the scope of the return in fiat. But with return, I find it better to watch the growth in terms of percentage of the crypto holding.

This is where fantastic gains can be made and, if the speculation pays off, can see massive gains on a fiat basis.

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@purefood 63

almost 4 years ago

Hello, sorry for the late reply! What do you mean by "return in fiat"?

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@ph1102 77

almost 4 years ago

I remember the times when these percentages were on regular savings in the banks... Now, we are happy if they don't take our money by negative interest rates...

So, it's great to have the option to save some crypto in DeFi apps...

Thanks for sharing your experience!

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@purefood 63

almost 4 years ago

Hi, sorry for the late reply! Oh ya, I don't use my normal bank accounts for anything but transporting cash. You can store cash in the form of a few tether currencies on BlockFi, and these accounts earn 8.6% APY! I'm doing one right now with PAX.

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