What Can Crypto Do for You?
You’ve probably heard people talking about crypto.
“Magic internet money” they say… well what’s so magic about it? I mean it’s not like we can’t send money around online already, right? Services like Paypal and Venmo have been around for years at this point, but the truth is they haven't elicited quite the same "magical" buzz as cryptocurrencies (I call them: cryptoassets) like Bitcoin. Why is that?
What you might be missing is that crypto is about a lot more than just the ability to send money over the air waves to pay your friend back for that plate of extra-spicy Szechuan chicken. Sure, crypto might let you do this with a little more privacy and security, and a little less bank-in-the-middle, but who really cares if the bank is in the middle if your money gets where it needs to go without any problem?
There is something about the way we’ve traditionally done things when using banks though that most people miss. Something big. It’s very easy to miss because we’ve all been conditioned to accept it as status quo without a second thought. I’m going to shake things up a bit though by asking a single, simple, question. This is the red-pill moment everyone.
What is the bank actually paying you for the privilege of holding onto your money before you send it or after you receive it?
Read that question again and think about it. How do services like Robinhood and Venmo make money if they don’t charge you for transactions? How does Cashapp make money? And how does your bank make so much money, that is, in addition to the fees they typically charge?!
The answer is… they make money off of your money! Sure they’ll make you think it’s just sitting there in your account, and they’ll almost always have it available for you when you need it, but in the meantime they are putting your money to work – via lending to other people or companies with an interest rate – and they are paying you nothing, even though it’s your dang money!
I can sum up the real “magic” behind crypto in one word: YIELD.
That’s right, whether or not investing in cryptoassets like Bitcoin or Ethereum is right for you, the crypto space – that is, the ecosystem of apps and services built on crypto technology - still has this to offer you: sound, competitive, yield. Crypto passive income.
Here in crypto land, when our cash or our investment assets are sitting still, we expect them to be working for us (making us more money), and indeed they do. All of my crypto money earns money for me, every minute of every day. And it earns a whole hell of a lot more than the flimsy 1% your bank tosses you for scraps. Believe it or not, some of the highest interest rates are in basic US dollars. That’s right, the same stuff you have sitting in your bank, right now, could be earning you 10% or more, per year, without you having to lift hardly a pinky. You can earn on your Bitcoin, Ethereum, or favorite magic-fairy-coin XYZ too, but part of the point is that you don’t need to hold risky cryptoassets to take advantage of what the crypto ecosystem has to offer.
How does this work? Well if you’re particularly unlucky and have a friend that just won’t shut up about crypto, you may have heard the word DeFi (“DEE-fy”) floating around once or twice. DeFi is the term for Decentralized Finance, which broadly refers to the growing proliferation of apps that put your cryptoassets to work for you while you’re not using them. They still “put your money to work” by making loans, just like a bank would, but the difference is they don’t need fancy downtown high-rises or thousands of employees making six-figure salaries. They are simply protocols - financial protocols written in cheap, sustainable, and open-source code. The result is you get more – in the form of a much larger share of the profits.
Another adjacent term to DeFi is CeFi (“SEE-fy”), which is a more traditional, centralized, alternative that is even easier to use. Here you’ll find everything you are used to; customer support, biometric security, tax support, and even insurance. That is why I recommend for most people to start here, especially if you want to spend the absolute minimum amount of time managing your finances, and don’t want to worry about keeping track of your all-important crypto-password (also called a private key).
I have used (and do use) both DeFi and CeFi, and the benefit is simply astounding. For over two years now I have been earning yield payments every week, on a compounding basis, and it has been truly life-changing. I want everyone to experience this new, better way of managing their finances.
If earning more money on your money tickles your fancy, but you’d like to talk through it a bit more before getting started, I invite you to schedule a free consultation with me today.
The fruits of magic internet money are just around the corner.
