Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Locked
Topic Author
am
Posts: 4233
Joined: Sun Sep 30, 2007 9:55 am

Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by am »

Anyone using compound app for interest on their crypto, particularly US dollar coin? Seems like US dollar coin is yielding 7.62% right now at compound. You can buy say 10k of US dollar coin in Coinbase, then transfer to compound and earn 7.62%.

The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value. Wondering if the 10k is liquid or there is a holding period? Also, using the etherium blockchain right now is expensive with miners fees I’ve seen from 80-400 dollars for a transaction. Anyone know a way around this?
inverter
Posts: 1021
Joined: Mon Jul 27, 2015 1:40 pm
Location: New York, NY

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by inverter »

You’re on the wrong forum!
decapod10
Posts: 1166
Joined: Thu Dec 28, 2017 5:46 pm

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by decapod10 »

I don't dabble in this sort of thing, though lots of people do. However, regarding your question about the transaction fees, no there's no good way around Ethereum transaction fees. The only way to mitigate it is to use large amounts because the transaction fees are fixed and do not change based on the size of the transfer. Also you can wait until the gas fees are low, like it was 50 gwei earlier which was pretty good in today's environment (it is 100 gwei now, which is not too bad).
Topic Author
am
Posts: 4233
Joined: Sun Sep 30, 2007 9:55 am

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by am »

inverter wrote: Sun May 16, 2021 12:10 pm You’re on the wrong forum!
For now. Educate yourself. I think this may be mainstream soon.
Gadget
Posts: 1026
Joined: Fri Mar 17, 2017 1:38 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by Gadget »

I haven't tried compound. I've done AAVE before.

Personally, I like the Cefi options better. They yield more, and I think they are less risky because you have someone to sue if they get hacked or something. They likely at least have insurance and profits that can cover some losses. On Defi, I'd have to be getting a lot more interest to take on that risk.

So personally I like BlockFi, Celsius, and Ledn better. To be fair, I haven't tried compound. But I assume it's similar to AAVE.
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by JoMoney »

am wrote: Sun May 16, 2021 12:41 pm
inverter wrote: Sun May 16, 2021 12:10 pm You’re on the wrong forum!
For now. Educate yourself. I think this may be mainstream soon.
"Avoid Bitcoin like the plague. Did I make myself clear?" - John Bogle
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
wmvink
Posts: 101
Joined: Sat Apr 13, 2013 12:44 am

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by wmvink »

As Gadget wrote, the centralized options offer the better risk/reward. If you really know what you're doing there are some crazy high yields to be found in DeFi, but those options may not make you sleep well at night.....
User avatar
Watty
Posts: 28859
Joined: Wed Oct 10, 2007 3:55 pm

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by Watty »

am wrote: Sun May 16, 2021 12:41 pm
inverter wrote: Sun May 16, 2021 12:10 pm You’re on the wrong forum!
For now. Educate yourself. I think this may be mainstream soon.
This link may be helpful.

https://www.bogleheads.org/wiki/Boglehe ... philosophy
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
For comparison the Vanguard "junk bond" mutual fund has a 3.06% yield.

https://investor.vanguard.com/mutual-fu ... file/vweax

Anything that yields over 7% has a LOT of risk
txhill
Posts: 628
Joined: Tue Mar 16, 2021 12:27 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by txhill »

Gadget wrote: Sun May 16, 2021 9:04 pm I haven't tried compound. I've done AAVE before.

Personally, I like the Cefi options better. They yield more, and I think they are less risky because you have someone to sue if they get hacked or something. They likely at least have insurance and profits that can cover some losses. On Defi, I'd have to be getting a lot more interest to take on that risk.

So personally I like BlockFi, Celsius, and Ledn better. To be fair, I haven't tried compound. But I assume it's similar to AAVE.
I think in DeFi's current state it is really only for advanced users, at least for now. I found AAVE surprisingly easy to use, but I suppose I am somewhat tech savvier than the average person (although I am far from a technologist myself). For those who are less tech savvy, you should stick to CeFi like BlockFi/Ledn/Gemini Earn. Celsius too although I have not tried it. If you are not sure of what you are doing, you could easily mess something up with DeFi and lose all of your investment (sending to wrong address, etc.).
txhill
Posts: 628
Joined: Tue Mar 16, 2021 12:27 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by txhill »

am wrote: Sun May 16, 2021 11:02 am Anyone using compound app for interest on their crypto, particularly US dollar coin? Seems like US dollar coin is yielding 7.62% right now at compound. You can buy say 10k of US dollar coin in Coinbase, then transfer to compound and earn 7.62%.

The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value. Wondering if the 10k is liquid or there is a holding period? Also, using the etherium blockchain right now is expensive with miners fees I’ve seen from 80-400 dollars for a transaction. Anyone know a way around this?
This article is a nice summary of how DeFi works and the risks associated with it--bugs, backdoors, economic exploits. Not to mention user error (probably one of the more substantial risks). Arthur Hayes is one of the smartest folks in the crypto space. https://cryptohayes.medium.com/poor-woj ... 510dcd3bae
TropikThunder
Posts: 3918
Joined: Sun Apr 03, 2016 5:41 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by TropikThunder »

am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
Topic Author
am
Posts: 4233
Joined: Sun Sep 30, 2007 9:55 am

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by am »

TropikThunder wrote: Mon May 17, 2021 12:35 pm
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
The way I understand it is that the borrower puts up collateral. The risk is that the collateral coin will crash and liquidity will dry up.
User avatar
HomerJ
Posts: 21281
Joined: Fri Jun 06, 2008 12:50 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by HomerJ »

am wrote: Sun May 16, 2021 11:02 am Anyone using compound app for interest on their crypto, particularly US dollar coin? Seems like US dollar coin is yielding 7.62% right now at compound. You can buy say 10k of US dollar coin in Coinbase, then transfer to compound and earn 7.62%.

The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value. Wondering if the 10k is liquid or there is a holding period? Also, using the etherium blockchain right now is expensive with miners fees I’ve seen from 80-400 dollars for a transaction. Anyone know a way around this?
You are missing the risks.

There is no free lunch.

Educate YOURSELF, instead of telling us there is a low risk way to earn 7.62%. It won't be mainstream, because you won't find mainstream borrowers willing to borrow at 9%-10% so that you can make 7.62%.

The only people willing to borrow at 9%-10% are those who are using it to trade even more crypto, since they assume crypto only goes up (and always more than 10% a year, so they don't mind a loan at 10%)

A very niche group of users, not mainstream.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
decapod10
Posts: 1166
Joined: Thu Dec 28, 2017 5:46 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by decapod10 »

am wrote: Mon May 17, 2021 2:01 pm
TropikThunder wrote: Mon May 17, 2021 12:35 pm
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
The way I understand it is that the borrower puts up collateral. The risk is that the collateral coin will crash and liquidity will dry up.
Yes, collateral risk is the big one. Contract risk is the other one (a bug or exploit in the contract that allows someone to take your funds). Then user error is a risk as well, since transactions are not reversible.
User avatar
HomerJ
Posts: 21281
Joined: Fri Jun 06, 2008 12:50 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by HomerJ »

I don't have a problem with people thinking these crypto loans are a good investment.

You can legitimately decide that the return is worth the risk. You can think that the risk is low enough to take a chance for that high return.

What people need to STOP doing is comparing these accounts to savings accounts.

The risk is not tiny. You can decide the risk is low enough and the return is high enough to take the chance. You may be right, you may be wrong about your calculation of risk.

But you are always 100% wrong when you infer that these investments are low-risk, even comparable to FDIC-insured savings accounts.

You don't move your safe money into these investments. You move your single-stock play money into these investments. The 7.62% should be compared to leveraged stocks, not a savings account.
Last edited by HomerJ on Mon May 17, 2021 3:21 pm, edited 1 time in total.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
User avatar
OohLaLa
Posts: 459
Joined: Tue Mar 09, 2021 7:26 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by OohLaLa »

Some of the answers make me laugh, and remind me of this:
https://www.youtube.com/watch?v=AIHrUUT58mc

am, did you look into staking pools for non-Ethererum projects (ETH is almost pointless with the fees)? If you find a project you find promising, you can allocate some funds to it and place the tokens into a reputable pool, thus "subsidizing" your purchase somewhat. You can "harvest" the yield yearly and convert to USD.

Both staking and lending are very high risk, by simple fact that you are involved in the cryptosphere. Their risks are different in nature, though, and I prefer the idea of staking. In both cases, you should avoid pure yield-chasing and actually look into the underlying project, if that's not something you've already done.
TropikThunder
Posts: 3918
Joined: Sun Apr 03, 2016 5:41 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by TropikThunder »

am wrote: Mon May 17, 2021 2:01 pm
TropikThunder wrote: Mon May 17, 2021 12:35 pm
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
The way I understand it is that the borrower puts up collateral. The risk is that the collateral coin will crash and liquidity will dry up.
So they have some crypto coin, and they use their crypto as collateral to borrow ....... more crypto. And they’re willing to pay like 10% interest to do so. Got it.

Wait, still don’t got it. What are they doing with the crypto they borrow? Just holding it? That seems pretty silly. Every crypto thread is like this. Someone makes a claim, someone else asks a question, and the original claimant gives a pseudo-answer that at first appears to answer the question but it really doesn’t.
User avatar
AerialWombat
Posts: 3106
Joined: Tue May 29, 2018 1:07 pm
Location: Cashtown, Cashylvania

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by AerialWombat »

HomerJ wrote: Mon May 17, 2021 2:54 pm But you are always 100% wrong when you infer that these investments are low-risk, even comparable to FDIC-insured savings accounts.

You don't move your safe money into these investments. You move your single-stock play money into these investments. The 7.62% should be compared to leveraged stocks, not a savings account.
+1

There is a fundamental misunderstanding of “risk” in the crypto world.

I really don’t understand this recent influx of crypto speculators to this forum.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
decapod10
Posts: 1166
Joined: Thu Dec 28, 2017 5:46 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by decapod10 »

TropikThunder wrote: Mon May 17, 2021 3:16 pm
am wrote: Mon May 17, 2021 2:01 pm
TropikThunder wrote: Mon May 17, 2021 12:35 pm
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
The way I understand it is that the borrower puts up collateral. The risk is that the collateral coin will crash and liquidity will dry up.
So they have some crypto coin, and they use their crypto as collateral to borrow ....... more crypto. And they’re willing to pay like 10% interest to do so. Got it.

Wait, still don’t got it. What are they doing with the crypto they borrow? Just holding it? That seems pretty silly. Every crypto thread is like this. Someone makes a claim, someone else asks a question, and the original claimant gives a pseudo-answer that at first appears to answer the question but it really doesn’t.
My guess is yes, many (most?) people are borrowing against their crypto to buy more crypto.
User avatar
OohLaLa
Posts: 459
Joined: Tue Mar 09, 2021 7:26 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by OohLaLa »

TropikThunder wrote: Mon May 17, 2021 3:16 pm
am wrote: Mon May 17, 2021 2:01 pm
TropikThunder wrote: Mon May 17, 2021 12:35 pm
am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value.
So there’s no default risk from the borrower side? If the middleman is paying 7.62% interest to the depositor, then they’re obviously charging more than that to the borrower. Who is in such poor shape that they need to pay >8% interest to borrow crypto, what are they using it for? You can’t sell a borrowed asset to take advantage of its appreciation when you have to return that borrowed asset in kind (the exchange doesn’t pay interest in $, it pays in additional crypto). ELI5.
The way I understand it is that the borrower puts up collateral. The risk is that the collateral coin will crash and liquidity will dry up.
So they have some crypto coin, and they use their crypto as collateral to borrow ....... more crypto. And they’re willing to pay like 10% interest to do so. Got it.

Wait, still don’t got it. What are they doing with the crypto they borrow? Just holding it? That seems pretty silly. Every crypto thread is like this. Someone makes a claim, someone else asks a question, and the original claimant gives a pseudo-answer that at first appears to answer the question but it really doesn’t.
Your question has been answered quite a few times, so saying this is some sort of ignored or deflected point is just not true. I forgot who, but someone was repeatedly trying to raise awareness about possible uses of crypto loans. Going long is not the only possibility.

Crypto can be borrowed for shorting the borrowed coin. A simple article, from the Aave founder himself:
https://medium.com/aave/case-study-how- ... 36fb08ce3b
Patzer
Posts: 701
Joined: Wed Jun 10, 2015 10:56 am

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by Patzer »

am wrote: Sun May 16, 2021 11:02 am The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value. Wondering if the 10k is liquid or there is a holding period? Also, using the etherium blockchain right now is expensive with miners fees I’ve seen from 80-400 dollars for a transaction. Anyone know a way around this?
And those risks justify only 6.13% yield (which is what it is now at the time of my post)?

Turkey's 3 month bond is paying 17.56%, should I rush to buy it just because it is higher than the 1% I get from my FDIC insured checking account?
CorradoJr
Posts: 302
Joined: Thu Apr 26, 2012 10:03 am

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by CorradoJr »

Just use AnchorUSD. No need to convert anything to stable coins and no fees to move in/out from your linked bank account.

Currently yield is 7.83%
seajay
Posts: 1656
Joined: Sat May 01, 2021 3:26 pm
Contact:

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by seajay »

I'd rather the likes of CHY (Calamos Convertible and High Income Fund) and its 7.9% recent forward yield. Regulated. Over that of unregulated where the likes of Elon can set aside $4Bn play money to pump and dump bitcoin prices to his advantage.
bi0hazard
Posts: 251
Joined: Mon Mar 14, 2016 10:36 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by bi0hazard »

AerialWombat wrote: Mon May 17, 2021 3:24 pm
HomerJ wrote: Mon May 17, 2021 2:54 pm But you are always 100% wrong when you infer that these investments are low-risk, even comparable to FDIC-insured savings accounts.

You don't move your safe money into these investments. You move your single-stock play money into these investments. The 7.62% should be compared to leveraged stocks, not a savings account.
+1

There is a fundamental misunderstanding of “risk” in the crypto world.

I really don’t understand this recent influx of crypto speculators to this forum.

What's not to understand :twisted: ? If volatile crypto"currency" is fundamentally a (thinly veiled ) pyramid scheme, then the scheme needs more "investors". What better forum than BH to turn up the fomo? :beer
Disclaimer: I'm not very smart, and this is just my hypothesis.
SlowMovingInvestor
Posts: 3486
Joined: Sun Sep 11, 2016 11:27 am

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by SlowMovingInvestor »

OohLaLa wrote: Mon May 17, 2021 3:34 pm
Crypto can be borrowed for shorting the borrowed coin. A simple article, from the Aave founder himself:
https://medium.com/aave/case-study-how- ... 36fb08ce3b
That doesn't hold for USDC -- one wouldn't be shorting that.
User avatar
watchnerd
Posts: 13614
Joined: Sat Mar 03, 2007 10:18 am
Location: Gig Harbor, WA, USA

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by watchnerd »

am wrote: Sun May 16, 2021 11:02 am Anyone using compound app for interest on their crypto, particularly US dollar coin? Seems like US dollar coin is yielding 7.62% right now at compound. You can buy say 10k of US dollar coin in Coinbase, then transfer to compound and earn 7.62%.

The only risks I see are to compound code failing and possibly a massive crypto crash where the borrowers collateral becomes illiquid or loses most value. Wondering if the 10k is liquid or there is a holding period? Also, using the etherium blockchain right now is expensive with miners fees I’ve seen from 80-400 dollars for a transaction. Anyone know a way around this?
I'm not using Compound for that, but I am earning APR via Algo, Cosmos, and Tezos.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
User avatar
watchnerd
Posts: 13614
Joined: Sat Mar 03, 2007 10:18 am
Location: Gig Harbor, WA, USA

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by watchnerd »

Gadget wrote: Sun May 16, 2021 9:04 pm On Defi, I'd have to be getting a lot more interest to take on that risk.
I view it as in the same league as single country local currency emerging market bonds to the sketchiest credit rating countries.

That sets the minimum floor for the kind of APR I'd want.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
User avatar
watchnerd
Posts: 13614
Joined: Sat Mar 03, 2007 10:18 am
Location: Gig Harbor, WA, USA

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by watchnerd »

JoMoney wrote: Sun May 16, 2021 9:28 pm

"Avoid Bitcoin like the plague. Did I make myself clear?" - John Bogle
Compound (COMP) is actually a separate crypto token from Bitcoin itself.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
decapod10
Posts: 1166
Joined: Thu Dec 28, 2017 5:46 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by decapod10 »

SlowMovingInvestor wrote: Mon May 17, 2021 4:43 pm
OohLaLa wrote: Mon May 17, 2021 3:34 pm
Crypto can be borrowed for shorting the borrowed coin. A simple article, from the Aave founder himself:
https://medium.com/aave/case-study-how- ... 36fb08ce3b
That doesn't hold for USDC -- one wouldn't be shorting that.
Speak for yourself, USDC is $1.01 right now... BRB while I short USDC :mrgreen:
ohboy!
Posts: 911
Joined: Thu Jan 04, 2018 1:21 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by ohboy! »

I have been using Compound for 6 months with USDC. Note that not only does a depositor get the lending rate but also COMP. The lending rate is based on the lending/borrow ratio and is determined per block. The COMP total distribution is fixed per day and determined based on share of total usage.

There are many options. I use Aave, DyDx, Yearn, Idle, and others. Loanscan.io has historical rates, but I have noticed a few discrepancies. Maybe there is a better site to compare?
bogledogle
Posts: 656
Joined: Wed May 07, 2014 4:34 pm

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by bogledogle »

bi0hazard wrote: Mon May 17, 2021 4:42 pm
AerialWombat wrote: Mon May 17, 2021 3:24 pm
HomerJ wrote: Mon May 17, 2021 2:54 pm But you are always 100% wrong when you infer that these investments are low-risk, even comparable to FDIC-insured savings accounts.

You don't move your safe money into these investments. You move your single-stock play money into these investments. The 7.62% should be compared to leveraged stocks, not a savings account.
+1

There is a fundamental misunderstanding of “risk” in the crypto world.

I really don’t understand this recent influx of crypto speculators to this forum.

What's not to understand :twisted: ? If volatile crypto"currency" is fundamentally a (thinly veiled ) pyramid scheme, then the scheme needs more "investors". What better forum than BH to turn up the fomo? :beer
+1

I have had friends try to sell me on MLM/Network Marketing/Pyramid Schemes. The talking points that some Cryptoheads are using here are eerily similar to what I have heard from folks selling pyramid schemes. It almost seems this is a creative marketing technique to find recruits.

I am not saying everyone posting about crypto is selling it. I get that some are in for the short term :moneybag
User avatar
JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by JoMoney »

watchnerd wrote: Mon May 17, 2021 5:24 pm
JoMoney wrote: Sun May 16, 2021 9:28 pm

"Avoid Bitcoin like the plague. Did I make myself clear?" - John Bogle
Compound (COMP) is actually a separate crypto token from Bitcoin itself.
So it would have Bogle's blessing then ? :mrgreen:
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
User avatar
watchnerd
Posts: 13614
Joined: Sat Mar 03, 2007 10:18 am
Location: Gig Harbor, WA, USA

Re: Anyone using compound for savings 7.62% for US dollar coin

Post by watchnerd »

JoMoney wrote: Mon May 17, 2021 7:59 pm
So it would have Bogle's blessing then ? :mrgreen:
Not at all.

Just clarifying that COMP is not, in fact, actually BTC, though.

They have different functions.

Intro here:

https://www.youtube.com/watch?v=Pg2zd1bUB8g
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
User avatar
LadyGeek
Site Admin
Posts: 95686
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Anyone using compound for savings 7.62% for US dollar coin [Crypto]

Post by LadyGeek »

Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Locked