You can test the system for yourself and get $10 in Bitcoin for the test drive.
Is BlockFi, too good to be true? The answer. Yes, but only in the way that the entire Western banking paradigm of constant exponential growth is too good to be true. These 8% yields may seem unsustainable, but they’ll be sustained until the masses wake up and realize nothing makes less sense than keeping money in certificate of deposits at your local bank. This is a guaranteed way to lose money. Lucky for you and me, the left is too busy, fighting amongst themselves to organize and overthrow the systems that are offering every person these preposterous gains.
In this article I want to share with you Blockfi, click the banner below this article to get you a part of this insane growth. Founded in 2017. Block Fi is backed by who’s who of crypto hedge funds and traditional financial institutions, including Valar Ventures, SoFi, Morgan Creek and Winkle boss capital. Yes, those Winkle bosses.
They raised almost 19 million in their Series A and over 30 million in their Series B, which they used to purchase a 5% stake in the gray scale Bitcoin trust.
From inception, they sent out to be the bankiest crypto bank to ever bank & they did it. From derivatives and collateralized loans to dangerously re-hypothecating your collateral, there’s nothing they won’t do to chase that sweet, sweet yield that keeps your crypto parked in their wallets and bragging about your automatic returns to your friends and co-workers.
That’s not to say that they are in any way, breaking the law. In fact, just the opposite. They pride themselves on working with US regulators and prioritizing SEC dictates at every turn. This makes sense, given their proximity to those Zany Winkle Boss twins and by extension, the Gemini trust. What I am saying is that they engage in the same behaviors that all traditional investment banks do.
That’s how you get yields. Like you see here, this is not however unique to Block Fi. Basically, every service you see advertising interest bearing accounts for your crypto from Coin Base to Binance to Celsius and crypto.com are engaging in some form of secondary lending to generate revenue, a portion of which they pass on to you and me.
This is the basic principle behind all banks. Deposit your funds, they lend it back out and your balance generates interest. This is also the same basic setup of any lending system, but that’s neither here nor there.
Some people don’t have the stomach for investing in nodes, metaverse projects or risky DAO strategies that expose the entire user base to the central counterparty risk of a liquidity crisis.
But you could argue that it’s the exact same thing as having fidelity manager 401k. And it is. The only difference is that there is no defy alternative for the stock market, like there is for crypto.
Block Fi offers anywhere from 4.5% to 11% AP Y on their crypto interest accounts, which is pretty good. These rates will change depending on demand. So the numbers I’m showing you may not be accurate even a few days after I publish this article, I like the concept & there are many reasons to use BlockFi.
Even for me first and most obviously getting a crypto loan, you can use your cryptocurrency as collateral for a dollar denoted loans, so that if you need liquid capital, you can avoid the taxable event of selling your coins. In fact, the interest on the loan will be a write off on your taxes.
Second and basically the number one reason I’m using Block FI is the visa credit card that offers 1.5% cash back in Bitcoin. I honestly cannot wait to get my hands on it. Not only will it help your credit score if you’re smart about using it, but you can also schedule your big purchases and subscriptions to go through that card and start stacking Bitcoin that way, which is undeniably a cool feature, even if it only exists to perpetuate the system of debt capitalism, that is the modern financial web.
So if you are comfortable with traditional financial institutions and comfortable with the custodial wallet set up, then Block Fi may be exactly what you’re looking for.
Block Fi is a set it and forget it system. So maybe a good option if you’re not knee deep into defi and want somewhere to earn some yield on your crypto. If you want, check it out, then click the banner at the bottom of this article and go sigh up, I mean is there any reason not to own a credit card that pays you cash back in bitcoin?
You’ll get $10 in Bitcoin after depositing, at least a hundred dollars on the platform. I keep a balance of USDC and Block Fi and Coinbase to make quick buys when the price of BTC or Eth drop.
So I just set that over and collect the reward within a day or so if you don’t like it, transfer it out and leave.
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BLOCKFI ANNOUNCEMENT 3-1-2022
We reached a resolution this past month with both the U.S. Securities Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) providing regulatory clarity and a path forward for clients across the United States who want to earn interest on their cryptoassets. As part of this resolution, we intend to file or confidentially submit a registration statement on Form S-1 with the SEC for the offering of BlockFi Yield (BY), which is anticipated to be the first SEC registered crypto interest-bearing security.
Per BlockFi Founder and CEO, Zac Prince: “From the day we started BlockFi, we have always known that strong engagement with regulators would be critical for the adoption of financial services powered by cryptocurrencies. Today’s milestone is yet another example of our pioneering efforts in securing regulatory clarity for the broader industry and our clients, just as we did for our first product—the crypto-backed loan. We intend for BlockFi Yield to be a new, SEC-registered crypto interest-bearing security, which will allow clients to earn interest on their crypto assets.”