Hey There Income Hunters,
The insane trends of money flowing to the banks and the Fed are a bit disconcerting, so I checked in on some of the stablecoins …
I understand that you give up FDIC insurance, but the bigger issue is the banking system blowing up.
Just think about how much we learned from the Archegos disaster and all the OTC derivative exposure the banks face.
Then think about the elimination of the OTC silver and gold swap market in London …
There must be some skeletons in that closet, too.
Now look at the amount of deposits in these banks that could be pulled during a crash:
Plus, there’s almost $1 trillion sitting at the Fed in its reverse repo facility.
This is a liquidity trap of immense proportions.
Low interest rates, high savings rates and people only feeling safe sitting with cash… until they get to that point of believing cash really is trash.
I recently bit the bullet and opened a decentralized finance account on the Celsius platform.
Testing the waters of being outside the banking system while earning 9% on my money is an interesting move right now.
The Value Driven Lending and Borrowing Platform
Check out Celsius (Token: CEL). They sit on a decentralized blockchain network and allow you to deposit stablecoins in your Celsius wallet and earn 8.8%!
The idea is, yo are outside the banking system and your money is safe.
You can also get private insurance for extra protection, but I’m more comfortable there today than J.P. Morgan
Here’s how it works…
You open an account at Celsius… Now, they don’t take cash dollars (smart) however you can buy USDC, which is the US dollar stablecoin deposit in your Celsius wallet and earn 8.8% with distributions every week! How about that compounding effect…
I have an account at coinbase so I bought USDC into my account at coin base…
Then I deposit my USDC directly into my wallet at Celsius …
… and in a week you are earning rewards….
Pretty easy and the incredible part is you could actually live off those types of returns…
It will build into a community over time, where you could lend any crypto in order to gain interest.
The longer you are there (seniority), the more interest you can earn — and you can also lend your crypto to someone who might be short of it for even greater levels of interest.
So, basically you become your own independent bank.
Over time, Celsius could turn into a cash-settled marketplace to lend and borrow any crypto currency, and I bet it would run much smoother than our capital market system.
Imagine it: full accountability full accountability and no more daisy chain of failures due to counterparty risk!
So far, Celsius supports the top 25 coins. They trade on multiple exchanges and are building trading tools so participants can short cryptos and borrow seamlessly.
No wonder why the banks are reluctant participants. It blows away dealing with a corrupt banking system..
Stablecoins are a big reason why crypto is here to stay, and as we transition to a new monetary system, Bitcoin will be back in a big way….
Bring It Home
The wet blanket put on the markets by the Fed will not last much longer.
Each time the central bank makes something up so they can keep kicking the can down the road, more people will lose confidence in it.
The cryptos and precious medals will be the big winners as Americans search for safety.
Check out Celsius for yourself and let me know what you think in the comments below!
Until then…
Live and Trade With Passion My Friends,
Griff