- Why it’s not worth buying Bitcoin (BTC)
One who is a novice in the crypto and blockchain world, often interfaces with Bitcoin (BTC) and from multiple sources feels that it is a deflationary asset, it is a store of value, has earned more over time than any other investment and etc.
So with all these positive aspects, a user is more than willing to recover some before it is too late, or rather before the price becomes too high even for small figures, because the more you enter a high-figure market and more time is needed to have a return.
Let me explain better, if a person were to buy now, at about 18 thousand dollars, 1 BTC or even fractions, for example 100 dollars, then everything we said at the beginning, perhaps, could come true in a couple of years, for example It’s been a good 3 years since we last saw similar figures.
In my opinion, NO.
However, this does not mean that there is no “profit” opportunity with Bitcoin (BTC), because most people, who follow a long-term strategy, buy an X of BTC and leave it as a deposit on their wallet / address, without touching them, hoping one day to liquidate them once they have increased by an X they had set for themselves.
A strategy that may be understandable but which, always in my opinion, does not make much sense, because it does not properly exploit our BTC, which we will be able to increase passively and without any effort over time.
Well YES, thanks to decentralized finance (DeFi), a sector in which various protocols have been developed and evolved that allow you to generate interesting APR and APY, i.e. interest on our deposits, and which are paid to us based on certain parameters.
In fact, liquidity pools have developed in this sector, smart contracts that act as a container for depositing our cryptocurrencies, such as BTC, and that allow them to be used by others in exchange for an interest, so as to repay the liquidity provider of an interest based on how many funds he had deposited.
It may seem a difficult concept to understand, but at the base the reasoning is very simple given that we find those who lend crypto, the smart contract and those who borrow the related crypto, who pay interest to the smart contract and the latter will distribute it to who had lent the crypto.
And it is here that we can make our BTCs bear fruit and multiply them, because not only will they increase over time, perhaps, but in the meantime these will increase in proportion to how many we have deposited on the various smart contracts.
In this way, we will have more BTC than we had at the beginning and all without having bought them, therefore the same initial amount invested, but with a greater return than what was done at the beginning, and without having to intervene every time, except in extraordinary cases. like updating the smart contract.
Obviously we are talking about different protocols that we find around and there are so many and one may be scared or not know where to start to take advantage of this type of opportunity, and that is why we find one of the most important books about decentralized finance (DeFi), which takes the name of “Mastering DeFi — A practical guide for beginners and the advanced”, important because it not only explains the basics of this sector and the various steps of the various protocols, over 30, but it is also the only one that examines 3 different blockchains such as Ethereum (ETH), EOS and Tron (TRX).
A book that analyzes the macro-categories of decentralized finance which are:
- Lending and Borrowing
All organized into 8 chapters and also divided by blockchain so as to have a complete picture of what we find on the various blockchains and also make the relative comparisons to leave maximum freedom for anyone to use the blockchain they prefer without closing the door to others.
Over 30 protocols analyzed in detail and details, with relative fundamental steps, an indication of the various costs incurred to carry out the various transactions, so as to make the reader aware before he can interact with him.
Translated into 8 different languages, Italian, English, German, French, Spanish, Portuguese, Dutch and Japanese, so as not to exclude anyone from this revolution that is underway and will continue in the years to come.
- Date of publication:
- Sun, 11/22/2020 - 11:28
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