How to lend your bitcoin safely

Don't, keep it in cold storage

quote of the day

“The 50-50-90 rule: Anytime you have a 50-50 chance of getting something right, there's a 90% probability you'll get it wrong.”

Photo by Ryan Fields on Unsplash

The fundamental value proposition of bitcoin is that you own something limited by design and that nobody can take it away from you, if you have the keys. So don’t give them away to someone who will speculate with them! The Bitcoin blockchain is the most secure database in the world and it is tracking the ownership of something rare, like a painting by Da Vinci. It is not an asset that produces a cash flow, like real estate or shares that pay dividends. You could say that you get interest on fiat currency at the bank. Yes, but the bank is lending your fiat to companies building a factory or to your neighbor for a mortgage on his house, but also to a hedge fund speculating in the stock market. But if you lend your bitcoin to someone, they are just speculating with it. If they make some money with your bitcoin, they will return your bitcoin and little something on top. If they lose it, you have lost your bitcoin.

Hodl strong, or use it for something really useful to you!