RE: The Lie That Is APY - Why I Opt For Bitcoin Interest

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totally interesting, i read up on lending and borrowing with aave today - but decided against it because there can always be bugs. i think lending and borrowing is more risky than buying these coins. but putting the return in comparison to inflation is something i haven't heard of before. very interesting train of thought.



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The entire point of lending is to be able to beat inflation and get a return on your capital. But all these protocols are relying on the interest rate return being covered by new demand pushing the market cap higher

So your interest rate is based on perpetual growth of that market cap which is impossible no market cap can grow forever so these interest rates aren’t stable and as the market cap reverts your only dividing the market cap by the new inflation and not actually getting a return

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that's right. so far i've only referred to fiat currencies in terms of beating returns, but of course it's the same with crypto... it just never occurred to me before lol

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Well I’m glad I’m giving you something to think about and I’m not just the crazy boomer coin Bitcoin holder who doesn’t see value in other coins!

In just demand better and so far Bitcoin is the best

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