Real Vision Crypto

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I think Ash’s video with Douglas Borthwick shows how important/disruptive crypto will be in the coming years to traditional finance. This is yet another case of a successful traditional finance professional taking the leap into the crypto world fulltime. Borthwick does an excellent job of showing the advantages of securities on a blockchain and and how valuable regulations can be to advance the crypto mission of eating all of traditional finance :)

Join the discussion here and weigh in what you think our best Crypto discussion was this week and your thoughts!

http://rvtv.io/vow_crypto_002

This is my first post so please be gentle.  

I saw Raoul's tweet about Central Bank Digital Currencies and read the DoubLine Capital piece below.  

https://doubleline.com/dl/wp-content/uploads/The-Pandoras-Box-of-CB-Digital-Currencies-October-2020.pdf 

It makes complete sense where Central Bankers want to go.  One thing I'm hung up on is why don't the big banks see the writing on the wall and ease their lending standards?  I would think Central Banks could even take a page from the Japanese playbook and start issuing window guidance.  Are banks in denial, stuck between a rock and hard place or something else? 

To avoid tangents around the best way to stake, I’ll start off by saying I’m lazy and just want something convenient. 

Most exchanges will let you stake certain cryptocurrencies and you get a certain percentage back. For example, Tezos on Coinbase will automatically start earning 4.5%, whilst on Kraken it is 6% (I also have Polkadot at 12%). This is in the range of a lot investments in the traditional economy.

I know crypto can be very volatile, but these returns are ’fixed’ regards of the value of the currency  unlike traditional investments. So, if the value of Tezos goes down I get 6%, if it remains static I get 6% and if it increases I get 6% x the increase. 

I’m OK with crypto volatility and I know there is an element of additional risk when staking. However, I’m assuming that using one of the large exchanges minimises this risk.

Is that assumption fair? And if so, are there any other risks I am missing? If you believe in crypto long term, don’t see why you wouldn’t do this.