March 23, 2021

Gains From Bitcoin Interest Coupled With Increased Coin Value Could Shock You

Simply, this is Blockfi. An application partnered with the Winklevoss twins that pays interest on your Bitcoin by loaning it out to others and is secured by loan collateral from the borrower.

What makes interest on your Bitcoin so big is the way that it scales. Regardless of the dollar price of Bitcoin you will be getting your interest back in Bitcoin, not dollars. If 1 Bitcoin is $60,000 but goes to $120,000 in a year you have effectively doubled your money in dollars while your Bitcoin stayed the same.

Now imagine building 6% interest on your Bitcoin for that year. Instead of just that $120,000 you gained 12% more because your 6% interest for that year plus the price of Bitcoin doubling.

This is example math of the problem above^

1 Bitcoin = $60,000

1 Bitcoin + 6% Interest for one year = 1.06 Bitcoin

1.06 Bitcoin x $120,000 = $127,200 (gain of $7,200 or %12 of $60,000)

So lets assume Bitcoin will reach $1,000,000 in 2030 to make this simple. If you start with 1 Bitcoin and no interest then in 2030 you would have $1,000,000. If you signed up on Blockfi and got 6% interest for 10 years that $1,000,000 has just turned in to 1.689 Bitcoin or $1,689,000. Now imagine Bitcoin going to $2,000,000 or even more, this interest is exponential.

Screenshot of Excel Calculator For Bitcoin Interest

I’ll add a calculator to the end of this post to show how your Bitcoin interest can go from 6% to 60% or more if the price in Bitcoin increases. This is one reason Bitcoin is a store of value and why this interest on Bitcoin is so incredible.

On Blockfi interest is payed out monthly in the crypto or USD stable coin of your choice. Interest is created by Blockfi users taking loans with set interest rates and using their own money as collateral in case the market moves one way or the other. This ensures that you will ALWAYS get your crypto back even if the market takes a massive dip.

This is a link to my affiliate for Blockfi if you would like to join. This is a seriously good deal when it comes to making money with crypto.

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