Yield on Cryptocurrencies

It’s a scam

A few years back, a good friend of mine told me that he had gone into cryptocurrencies and that he had purchased coins and lend them out at a yield of 8.5%.

I questioned on the business model because 8.5% looks like a very good deal in an era of low rates.

He told me that what he was told is that the exchange was able to give such good interest rate compared to the banks is because in the banks, there are a lot of fees and commissions paid to the bankers and thus even though the bank may loan out such high rates, the…