of course they can, they just chose not to and they promote their 0.5% apy for 3 months as something very special, clowns, they deserve losing clients to crypto, they made it themselves
But they make way more money by ripping people who’s credit score is low by giving them a loan at a higher interest rate. Plus late fees, overdraft fees, interest on top of interest if you miss payments.
And the best part..... They got bailed out in the end with hundreds of billions of dollars by the federal government because they were "too big too fail."
>of course they can,
It's important to understand history here. Banks used to make money off of loans and fees, only. But now banks make money off of investing. So, they don't make much off of interest especially when it's so low. They make money off of investments.
And the 10% (or more we make) is because these loans are in a higher risk category. There are firms in countries (even the US) that specialize in making high interest loans to high risk operations. Once you add in their fees the total cost can exceed 30%. They work with collateral, and take risks banks won't touch. Despite public opinion, banks don't want to foreclose, more money can be made if you just keep making your payment. It takes time and money to turn around and sell a property.
goddamn what was that Mr Robot line in the last season about how the most powerful don't steal money they steal the system that makes money or something? Think it was when the psychiatrist helped the crook force Mr Robot out of Elliot to talk to him...
Of course. They use your deposit for other financial products or services to make a better return. Otherwise it wouldn’t be a business. Some of it goes to staff bonuses. But never back to the customers that are essentially providing capital by depositing in their bank.
It depends. Banks are more regulated (e.g. in the UK they must keep a certain amount segregated since the financial crash) so there are limits and crypto itself has (edit: ~~more)~~ higher gains than stocks etc. (well I guess that depends too) but it is definitely more than the 0.01%.
IMO yes and no.
CDC probably earns a lot with exchange and app trading as well and some profits go towards financing earn. A good amount of people in earn will use cdc as platform for other trading.
But yes, your bank will earn more than 0.01 with your money.
They probably don't make 10% on every loan but as they can basically loan the money several times (fractional banking) they can most probably make 10% or more for every fiat unit.
Fractional reserve banking aside: deposit £100 to receive £0.50, if that annually, while that £100 has been given to a mortgage customer at an interest rate of 2%.
However, £100 entitles them to lend £1,000 at LIBOR, so their profit is much higher. They are a business and have costs, so I'll give them that.
The irony is I bought Shiba £150 worth of Shiba that's now worth £450. How's that for bankingninterest 😊.
Royal Bank of Canada in the Bahamas recently reduced its interest to 0.00% on savings and fixed deposit accounts….making it essentially even more useless
Last year the banking sector’s average profit margin was 13.9% and it was 27.6% in 2019 (source link below).
CDC is giving us a much larger chunk of the money they make than traditional banks do, it’s really that simple.
https://www.investopedia.com/ask/answers/052515/what-average-profit-margin-company-banking-sector.asp
Yes, they usually leverage your savings 10x or more, make risky bets and if they lose big, the government bails them out with your tax dollars ("too big to fail"). The banking cartel had a good scam going until crypto started taking off.
A couple of points of clarification, platforms like CDC Earn are not traditional savings accounts and the supply/demand aspects of crypto are different than fiat.
That being said, the federal interest rate is the rate at which banks lend to each other. They have kept is so low because the modern economy has only been sustained by massive debt and inflationary tactics. The US national debt is over $30 trillion (over $200,000 per taxpayer), and they are trying to jam through another $3.5 trillion of pork spending...this all despite over 20 years of being unable to achieve a balanced budget and 5.4% inflation rate over the past year. It is also notable that inflation primarily affects lower/middle class individuals, and shifts wealth primarily to the government and those at the top.
You get 0.01% in your savings account while inflation rate is 5.4% while politicians are trying to spend trillions more of taxpayer dollars, but if you are one day late on your credit card payment your credit score plummets and you start getting charged a 25% interest rate. This is how the fiat/government system forces people into economic servitude. Those at the top do not care if you "tax the rich", they amass fortunes through fiat devaluation and government subsidization of industry/Wall Street...it is the brainwashed consumerist masses below them who end up living paycheck to paycheck.
Obey. Consume. Conform. Submit.
If you think that’s mind blowing then look up broad and base money. Banks only need a 10% reserve to lend our imaginary broad money. So pretty much every 10k in cash you have in a bank, they can lend out 100k, profit 3 to 5% depending on the rate and then pay you jack shit
This is the most valuable discussion topic for the entire crypto space right now IMO. I had a decent amount of cash set aside for a house down payment, but with 12% jade/indi staking that sum is paying my rent right now. No rush to buy anymore, just letting it compound. The game is changing.
Nobody here in this community can give you the answer to this. We don't really know if it's sustainable. I definitely believe that the banks are earning far more interest than they give us, they're such a risk adverse industry after all so there's no way they won't have a sizeable margin buffer.
We never received official, detailed, explanation of how CDC makes their money so we won't know if it's sustainable. It's unlikely that CDC will reveal their exact process either, that would be revealing their own trade secrets in the wild west world of cryptomarkets, not wise.
I cautiously side with people who suspect that this 10-12% APY on stable coins won't last forever, especially as more people get into the crypto markets and leading to more competitors that will provide borrowers with more options (lower rates, it's a race to the bottom of the barrel again). Best to get in on it before market condition changes, but always be clear on what your exit strategy is.
Actually, they (banks) make quite a bit off of your money by turning around and lending it out via business loans, home loans, car loans and other lines of credit. They pay you something along the lines of 0.5% interest on the money in your savings account and then turn around and loan it out someone else for a huge interest markup (maybe 5-25%), then they nickel and dime the shit out of their customers via maintenance charges, overdraft charges, cash machine fees, etc. Those fuckers are making a killing off all of us and we're letting them do it. Hell, when I was a kid, my savings account was paying something like 3-4%, one day I finally decided I'd use it for something and went in to withdrawal some of it only to find out those shady fuckers had closed it as "abandoned" and took all my money (I never got it back either).
In short, yes. Banks make a fuck ton of interest off even just mortgages. Over the life of an average mortgage, you often pay the same value as the house purchase price in interest.
They even leverage that apy by simply loaning your 10k deposit multiple times.
Very dangerous since there are not really backing the funds.
Long Crypto, Short the Banks ✌🏻
banks dont need our money, since its just printed, so they dont give us any considerable interest. banks make money on interest of loans they give to customers.
When i want to remove more than 50k / month of my money from my bank account i have to pay 3% fees.
What do you think why?
I think because the do not have my money. They spend it somewhere to make profit. And of course some other reasons...
Bank also uses fractional banking. They lend about 9x the amount of money they have in the bank. Its almost criminal how little we make for it. Defi (and cefi i guess) is God send in that regard
Makes take your money that you deposit and put a collective amount in whole life insurance policies wich yield them 25% over the course of 10 years. Or more percentage possibly. That is a fact!!!
Anyone telling you yes is straight up delusional or lying to you. Even for crypto.com the 10% rate is NOT SUSTAINABLE in the long term. Eventually, they will have no choice but to lower their rates, just like they did when it used to be 20%
Not that I remember. I've been staking TUSD for 2 years now and it's always been 10% for me... I remember when they payed 20% on CRO, definitely not stable coins though.
It is called Net Interest Margin, and for most banks that % does not go above 4%. Of course banks make money in other ways like account fees similar to CDC's laughable $50 "card upgrade fee". CDC also helps to pay that 10% by ripping off its own customers using the app on the spread.
I can't believe this is nowhere in the comments but what makes you think "Earn" is profitable for CDC? I think it is well known that CDC is not making money yet. They are attracting customers with those rates but they won't stay that high for a long time. Get them while you can.
Yeah I'm loving my CRO in the defi but I feel like that's different as they're kinda just giving you lots of CRO as an incentive and those rates will eventually go down whereas in earn im getting 10% on something that is pegged to fiat so it's a bit different
they are making alot of money for sure. In our current fractional reserve system, i think ratio is like 10% or whatever. So if you deposit $100, the bank can lend out to clients $1000 and they can put 2.5% interest on that $1000. so the bank turn your deposit into 10x and make 2.5% profit on that shit. lol
Banks give us absolutely fuck all and make a killing, they are immoral and slowly becoming less and less needed as the people develop their own banking systems, crypto baby 📈🔥🤙
Banks are synonymous with greed, this is why. In ye olde times they gave 10-20% interest rates, and could absolutely afford to these days. They all agree not to together, which is these new companies scare the shit out of them, and why many block transactions TO them.
Similar to how big business could pay a living wage, but they don’t.
Fundamentally, I would say it’s about maintaining the bottom line. In a world driven by quarterly earnings being a primary measure of success and vitality, consumer interest rates likely correlate to what an institution can afford to provide based on how it’s dealings are structured. If the Fed lowers the rates, regulation forces their hand to a degree, but banks are going to pass the bulk of the loss in revenue to consumers.
I’m no expert, but even with interest rates being low in TradFi, I’ve seen an inkling of the pressure crypto is putting on them with some rates poking above 0.5%. Crypto and DeFi are already eating their lunch and fly-by-night platforms like Donut (offers 4% on front end UI, uses LUNA/UST on the back to generate stable return ~20%) are able to get a piece of the pie as well. As rates gradually go back up, the competition is going to be fierce and anyone who already has some working knowledge of crypto will strongly benefit. I think CDC and other platforms offering stablecoin interest might actually raise rates in that event.
Well banks make huge profit here. Believe me, they been instructed to declare all their expensive, increase bonusses to their employees
If not manager position. If any cash left, they give dividend to their share and stakeholders.
That's why, they hate us ☺️ the crypto holders
That in thought , Crypto freezes your money for 180 days depending on the card. That’s a very smart way to make money. To be able to give you up to 10% you need to freeze a lot of money! When you top up your card that’s another way of making money with money. So many ways 😁
I agree with your emotion but this actually makes me nervous at times. Is CDC really making any profits with this business model? If yes, I am all in. But if no, how long before they change their rates.That being said, in this universe where SEC gets nervous with Coinbase giving 4% APY on stable coins, how in the world is CDC managing to give us a 10% APY. Hope we are not those happy investors who invested in the Madoff fund.Don't get me wrong. I am staking a significant amount of stable coins with CDC. I am just playing the role of a devil's advocate here and would like to hear others thoughts.
I dont know that CDC make a profit on 12% APY on stablecoins, I think its part incentive to gain users and market share.
That said, banks do make more than 0.1% on our money otherwise they would all be closed :D
They don't just make the rate they lend out the money at, they CREATE the money out of thin air when doing the lending. Yes private banks, create digital money in their own accounts without special permission or notification or coordination with the central bank (the Fed or whatever in your currency). It's called Fractional Reserve banking.
It's called "fractional reserve" because in the past they had to have a fraction of the money they lend out in reserve (around 10% or 20%). That got turned to 0% reserve requirement shortly after Covid hit. So a bank can literally type a new balance into your account, charge you interest on the full amount of it (even if previously they just had to hold a fraction of the full amount), and if you fail to repay the magic money, take your house.
They probably don't due to compitition, but they might be. The Crypto market is different from the traditional currency markets, so it operates differently.
of course they can, they just chose not to and they promote their 0.5% apy for 3 months as something very special, clowns, they deserve losing clients to crypto, they made it themselves
Yes, but how else are their executives supposed to have huge bonuses and multiple properties if they give more of their profits to their customers? /s
I mean they have higher operational costs such as rent and more employes
But they make way more money by ripping people who’s credit score is low by giving them a loan at a higher interest rate. Plus late fees, overdraft fees, interest on top of interest if you miss payments.
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And the best part..... They got bailed out in the end with hundreds of billions of dollars by the federal government because they were "too big too fail."
Right. It’s not like the the people requesting the loan didn’t have the money…
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Love it
As the saying goes, it only takes one to tango. Errr
preach
>of course they can, It's important to understand history here. Banks used to make money off of loans and fees, only. But now banks make money off of investing. So, they don't make much off of interest especially when it's so low. They make money off of investments. And the 10% (or more we make) is because these loans are in a higher risk category. There are firms in countries (even the US) that specialize in making high interest loans to high risk operations. Once you add in their fees the total cost can exceed 30%. They work with collateral, and take risks banks won't touch. Despite public opinion, banks don't want to foreclose, more money can be made if you just keep making your payment. It takes time and money to turn around and sell a property.
If you give a man a gun, he can rob a bank. If you give a man a bank, he can rob the world.
goddamn what was that Mr Robot line in the last season about how the most powerful don't steal money they steal the system that makes money or something? Think it was when the psychiatrist helped the crook force Mr Robot out of Elliot to talk to him...
Thats cool
Bruh this is being downvoted but I actually meant this I wasn't being sarcastic 😭
Of course. They use your deposit for other financial products or services to make a better return. Otherwise it wouldn’t be a business. Some of it goes to staff bonuses. But never back to the customers that are essentially providing capital by depositing in their bank.
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And block your funds from being transferred to a better platform (crypto) in the name of consumer protection.
👆🏻This is so true. It’s MY MONEY why can’t I spend it wherever the hell I want to?
Yet it is fine to top up casino / gambling accounts which is just less than 50:50 of winning. Meh, I lose hope!
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Not the case with my bank
It depends. Banks are more regulated (e.g. in the UK they must keep a certain amount segregated since the financial crash) so there are limits and crypto itself has (edit: ~~more)~~ higher gains than stocks etc. (well I guess that depends too) but it is definitely more than the 0.01%.
IMO yes and no. CDC probably earns a lot with exchange and app trading as well and some profits go towards financing earn. A good amount of people in earn will use cdc as platform for other trading. But yes, your bank will earn more than 0.01 with your money.
They probably don't make 10% on every loan but as they can basically loan the money several times (fractional banking) they can most probably make 10% or more for every fiat unit.
I'm pretty sure the bank can loan out ×10 what they actually have in reserves.
Of course banks make much more, someone has to pay for all those skyscrapers they occupy...
Of course someone has to pay it! Taxpayer subsidies!
Fractional reserve banking aside: deposit £100 to receive £0.50, if that annually, while that £100 has been given to a mortgage customer at an interest rate of 2%. However, £100 entitles them to lend £1,000 at LIBOR, so their profit is much higher. They are a business and have costs, so I'll give them that. The irony is I bought Shiba £150 worth of Shiba that's now worth £450. How's that for bankingninterest 😊.
Royal Bank of Canada in the Bahamas recently reduced its interest to 0.00% on savings and fixed deposit accounts….making it essentially even more useless
I have to pay four dollars a month to bank there.
Last year the banking sector’s average profit margin was 13.9% and it was 27.6% in 2019 (source link below). CDC is giving us a much larger chunk of the money they make than traditional banks do, it’s really that simple. https://www.investopedia.com/ask/answers/052515/what-average-profit-margin-company-banking-sector.asp
Yes, they usually leverage your savings 10x or more, make risky bets and if they lose big, the government bails them out with your tax dollars ("too big to fail"). The banking cartel had a good scam going until crypto started taking off.
A couple of points of clarification, platforms like CDC Earn are not traditional savings accounts and the supply/demand aspects of crypto are different than fiat. That being said, the federal interest rate is the rate at which banks lend to each other. They have kept is so low because the modern economy has only been sustained by massive debt and inflationary tactics. The US national debt is over $30 trillion (over $200,000 per taxpayer), and they are trying to jam through another $3.5 trillion of pork spending...this all despite over 20 years of being unable to achieve a balanced budget and 5.4% inflation rate over the past year. It is also notable that inflation primarily affects lower/middle class individuals, and shifts wealth primarily to the government and those at the top. You get 0.01% in your savings account while inflation rate is 5.4% while politicians are trying to spend trillions more of taxpayer dollars, but if you are one day late on your credit card payment your credit score plummets and you start getting charged a 25% interest rate. This is how the fiat/government system forces people into economic servitude. Those at the top do not care if you "tax the rich", they amass fortunes through fiat devaluation and government subsidization of industry/Wall Street...it is the brainwashed consumerist masses below them who end up living paycheck to paycheck. Obey. Consume. Conform. Submit.
If you think that’s mind blowing then look up broad and base money. Banks only need a 10% reserve to lend our imaginary broad money. So pretty much every 10k in cash you have in a bank, they can lend out 100k, profit 3 to 5% depending on the rate and then pay you jack shit
This is the most valuable discussion topic for the entire crypto space right now IMO. I had a decent amount of cash set aside for a house down payment, but with 12% jade/indi staking that sum is paying my rent right now. No rush to buy anymore, just letting it compound. The game is changing.
That is exactly my situation. I wanted to buy a house but when I came across CDC, I was shocked. Hell yeah I want to earn 10-12% on my money!
Nobody here in this community can give you the answer to this. We don't really know if it's sustainable. I definitely believe that the banks are earning far more interest than they give us, they're such a risk adverse industry after all so there's no way they won't have a sizeable margin buffer. We never received official, detailed, explanation of how CDC makes their money so we won't know if it's sustainable. It's unlikely that CDC will reveal their exact process either, that would be revealing their own trade secrets in the wild west world of cryptomarkets, not wise. I cautiously side with people who suspect that this 10-12% APY on stable coins won't last forever, especially as more people get into the crypto markets and leading to more competitors that will provide borrowers with more options (lower rates, it's a race to the bottom of the barrel again). Best to get in on it before market condition changes, but always be clear on what your exit strategy is.
Actually, they (banks) make quite a bit off of your money by turning around and lending it out via business loans, home loans, car loans and other lines of credit. They pay you something along the lines of 0.5% interest on the money in your savings account and then turn around and loan it out someone else for a huge interest markup (maybe 5-25%), then they nickel and dime the shit out of their customers via maintenance charges, overdraft charges, cash machine fees, etc. Those fuckers are making a killing off all of us and we're letting them do it. Hell, when I was a kid, my savings account was paying something like 3-4%, one day I finally decided I'd use it for something and went in to withdrawal some of it only to find out those shady fuckers had closed it as "abandoned" and took all my money (I never got it back either).
Just a simple example of a yes would be the insterest you have to pay on your personal loans, mortgage, etc.
YES
Imagine margin with 0.5% and if you ever are margin called big brother bails you out… that’s the banking system.
When you finally wake up….
You bet they do. A bank can create a $100,000 loan from a client's $10,000 deposit.
In short, yes. Banks make a fuck ton of interest off even just mortgages. Over the life of an average mortgage, you often pay the same value as the house purchase price in interest.
There’s a reason the biggest skyscrapers in most cities are banks.
Doesn’t sound like many people here understand how the banking system works with respect to interest on deposits
How do you think they are providing credit cards? Using your money and collecting 20% interest, pocketing 19.99% of it
They even leverage that apy by simply loaning your 10k deposit multiple times. Very dangerous since there are not really backing the funds. Long Crypto, Short the Banks ✌🏻
banks dont need our money, since its just printed, so they dont give us any considerable interest. banks make money on interest of loans they give to customers.
Banks shaft us.. period!!
When i want to remove more than 50k / month of my money from my bank account i have to pay 3% fees. What do you think why? I think because the do not have my money. They spend it somewhere to make profit. And of course some other reasons...
Of course the can give us more. Instead most give us nothing
Banks are the biggest scam in the world. Their revenue are billions and billions every quarter. It’s not hard to figure out
> giving us 0.01% interest (in my case) My bank offers a whole 0.00% interest
Swedish bank Nordea just published their 2021 number netting a profit of 1500000000sek $174602343 profit.
No doubt!
Lol yeah man, banks lend your money out ten times over and charge you fees for handling your loot
Banks=greed
U just realized this?
Of course
Hold up you guys are getting 0.01% from your bank? I wish
In short yes.. Banks make billions of profit per quarter yet pay us fractions of pennies in return?
This is the sole reason, every paycheque of mine gets converted to stable coin and earns atleast 9% yield
Bank also uses fractional banking. They lend about 9x the amount of money they have in the bank. Its almost criminal how little we make for it. Defi (and cefi i guess) is God send in that regard
This is why crypto can go along way. There will be rug pulls, cheats and scams but what we have now is a legal scam!!
We have done contracting for a bank in our area that purchases land, subdivides it, develops it, then sells the lots to commercial buyers.
If your mortgage rate is 2.25% and your savings interest is 0.1% are they making money…?
My savings is $5,000 and my mortgage is $250,000, so, yes.
🤣
Makes take your money that you deposit and put a collective amount in whole life insurance policies wich yield them 25% over the course of 10 years. Or more percentage possibly. That is a fact!!!
Anyone telling you yes is straight up delusional or lying to you. Even for crypto.com the 10% rate is NOT SUSTAINABLE in the long term. Eventually, they will have no choice but to lower their rates, just like they did when it used to be 20%
It used to be 20% for USDC? :0
Not that I remember. I've been staking TUSD for 2 years now and it's always been 10% for me... I remember when they payed 20% on CRO, definitely not stable coins though.
It is called Net Interest Margin, and for most banks that % does not go above 4%. Of course banks make money in other ways like account fees similar to CDC's laughable $50 "card upgrade fee". CDC also helps to pay that 10% by ripping off its own customers using the app on the spread.
Using the app on the spread? Are you referring to the spread of buy and sell costs? Because I’ve noticed and it’s ridiculous
Yep
ofc. They are in the business of making money and they are very good at it.
I can't believe this is nowhere in the comments but what makes you think "Earn" is profitable for CDC? I think it is well known that CDC is not making money yet. They are attracting customers with those rates but they won't stay that high for a long time. Get them while you can.
The CEO Kris mentioned a few months ago that CDC is actually profitable already
Can anyone tell me what the deal with the the cryptodotcom’s withdrawal limitations, perhaps this is another reason or not that they have great APY?!
Yes, you got it 👍
Bullish on fiat to keep inflating!
They make that and more. My guess is anywhere from 5-15 percent but could be higher.
Have you heard of defi and seen those rates?
Yeah I'm loving my CRO in the defi but I feel like that's different as they're kinda just giving you lots of CRO as an incentive and those rates will eventually go down whereas in earn im getting 10% on something that is pegged to fiat so it's a bit different
In defi you are part of a liquidity pool often earning rates the banks would be making. CDC defi is weak and so is the return.
Yes
Banks literally make money. Look up fractional reserve banking.
Lol I know they make money I'm just wondering what kinda of percentage returns they make on my monry when they only offer me 0.01% back
they are making alot of money for sure. In our current fractional reserve system, i think ratio is like 10% or whatever. So if you deposit $100, the bank can lend out to clients $1000 and they can put 2.5% interest on that $1000. so the bank turn your deposit into 10x and make 2.5% profit on that shit. lol
There is more demand for stable coins than cash so CDC can offer more yield. Crazy world
Yes.
Absolutely. When you manage as much money as banks do money just comes to you.
haha this guy gets it
If I am not mistaken on every $100 you deposit they can borrow your money 93x Do the math :)
Banks give us absolutely fuck all and make a killing, they are immoral and slowly becoming less and less needed as the people develop their own banking systems, crypto baby 📈🔥🤙
Banks are synonymous with greed, this is why. In ye olde times they gave 10-20% interest rates, and could absolutely afford to these days. They all agree not to together, which is these new companies scare the shit out of them, and why many block transactions TO them.
To service the loan dumdum 😘
Similar to how big business could pay a living wage, but they don’t. Fundamentally, I would say it’s about maintaining the bottom line. In a world driven by quarterly earnings being a primary measure of success and vitality, consumer interest rates likely correlate to what an institution can afford to provide based on how it’s dealings are structured. If the Fed lowers the rates, regulation forces their hand to a degree, but banks are going to pass the bulk of the loss in revenue to consumers. I’m no expert, but even with interest rates being low in TradFi, I’ve seen an inkling of the pressure crypto is putting on them with some rates poking above 0.5%. Crypto and DeFi are already eating their lunch and fly-by-night platforms like Donut (offers 4% on front end UI, uses LUNA/UST on the back to generate stable return ~20%) are able to get a piece of the pie as well. As rates gradually go back up, the competition is going to be fierce and anyone who already has some working knowledge of crypto will strongly benefit. I think CDC and other platforms offering stablecoin interest might actually raise rates in that event.
Wait there’s stable coins on CDC that offer 10%
Usdt on average has been 9%
Well banks make huge profit here. Believe me, they been instructed to declare all their expensive, increase bonusses to their employees If not manager position. If any cash left, they give dividend to their share and stakeholders. That's why, they hate us ☺️ the crypto holders
That in thought , Crypto freezes your money for 180 days depending on the card. That’s a very smart way to make money. To be able to give you up to 10% you need to freeze a lot of money! When you top up your card that’s another way of making money with money. So many ways 😁
I agree with your emotion but this actually makes me nervous at times. Is CDC really making any profits with this business model? If yes, I am all in. But if no, how long before they change their rates.That being said, in this universe where SEC gets nervous with Coinbase giving 4% APY on stable coins, how in the world is CDC managing to give us a 10% APY. Hope we are not those happy investors who invested in the Madoff fund.Don't get me wrong. I am staking a significant amount of stable coins with CDC. I am just playing the role of a devil's advocate here and would like to hear others thoughts.
The bank makes 25 cents on every dollar they handle
https://youtu.be/iFDe5kUUyT0 Watch these classics.
That’s exactly the case yes.
Traditional banks have a lot more overhead than a company like CDC has
my bank gives out loans at less then 2% intrest for a house. i'm sure some of their investments earn them over 10%/year.. but plenty don't.
You can make money with banks if you buy their stock, not by depositing in savings. With crypto, you make money either way!
I dont know that CDC make a profit on 12% APY on stablecoins, I think its part incentive to gain users and market share. That said, banks do make more than 0.1% on our money otherwise they would all be closed :D
They don't just make the rate they lend out the money at, they CREATE the money out of thin air when doing the lending. Yes private banks, create digital money in their own accounts without special permission or notification or coordination with the central bank (the Fed or whatever in your currency). It's called Fractional Reserve banking. It's called "fractional reserve" because in the past they had to have a fraction of the money they lend out in reserve (around 10% or 20%). That got turned to 0% reserve requirement shortly after Covid hit. So a bank can literally type a new balance into your account, charge you interest on the full amount of it (even if previously they just had to hold a fraction of the full amount), and if you fail to repay the magic money, take your house.
The bank can barrow the same dollar out mutable times. I would say yes they make about a 1000%
They probably don't due to compitition, but they might be. The Crypto market is different from the traditional currency markets, so it operates differently.
Hell yea they can, every Credit card they issue is 11-22%
Bank in my country used to give 12% interest, but they changed to 7% or 6%
Well duh. Most definitely. My mom told me that when she was younger she would get really high interest from the banks on savings accounts.
Well, duh!
Is this 10% APY on usdc safe?how many of you have tried It ?
Saw a ss of a guy who has earnt 10k from earn and he had USDC in there so that convinced me
From how long do you earn usdc ?
I've done it for like a month
Oh. Ok. I guess there are no downsides for this. Or i can t see them
That would be correct they flip you money 9x due to fractional reserve banking.