Hi All What do you guys think of crypto.com earn program and high-interest rates after the new ruling on cryptocurrency? https://www.bloomberg.com/news/articles/2022-02-19/crypto-lender-nexo-said-to-halt-interest-on-new-deposits TC: 210k
It depends, but the USA is falling behind because Wall Street keeps getting it’s way. They want to make sure Americans are stuck with their <3% yield (which is net negative w/ inflation even when it’s not rampantly high), instead of 6% - 12% yields. Citizens in developing countries will be able to get more sustainable yields than the citizens of supposedly the most financially advanced country.
I think it depends on where the yield is coming from and the risk associated with it. High yield inevitably means high risk, otherwise you can borrow at 0% and just put everything on it.
For sure, I would agree with that. Though if the ruling’s goal is to protect investors, it’s kind of ironic because Wall Street, to generalize, has kickstarted recessions from overly risky assets (sub-prime mortgage backed securities), which were mainly available to “accredited investors”. They’re not even letting everyday investors try with these set it and forget it algorithmically generated yield products. Perhaps some of those higher yield products are more meant for folks in less developed countries. However, it would be nice if we could simply make our own decisions about it as investors. I wonder what will now happen with some of the less official players like Celsius.
What ruling?
https://www.bloomberg.com/news/articles/2022-02-19/crypto-lender-nexo-said-to-halt-interest-on-new-deposits