[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 43 KB, 450x250, C9F1D51C-3D6E-4169-B3CC-F9401CCACEC0.png [View same] [iqdb] [saucenao] [google]
17690252 No.17690252 [Reply] [Original]

How come crypto seems to offer a higher ROI in staking 5-10% compared to traditional financial institutions e.g banks?

Seems too good to be true.

>> No.17690347

because crypto isn't real money

>> No.17690452

uh, risk much?

>> No.17690693

>>17690252
Because there is no middle man to absorb part of your ROI. With traditional financial institutions, they have to pay peoples salary off of the interest they skim from their customers. With crypto, you are the bank, and you receive 100% of interest gained.

>> No.17692004

Complete the following semtence:
If it sounds too good to be true, it's probably _________

>> No.17692039

>>17690252
Because crypto is volatile. It isn’t really linked to anything in reality past the belief in it. It’s fiat without the backing of central banks and governments, fiat that is rejected as a store of value by 99.9% of merchants in the world.

It’s absolutely retarded and crypto traders are just praying for another nonsensical bitcoin story, but it won’t happen, because normies wont ever fall for the crypto meme en masse again. And it was normie exposure to bitcoin that caused it to skyrocket as it did.

>> No.17692309

>>17690252
All these answers are wrong. There's nothing stopping a crypto from having 500% staking rewards. So what's the catch? That's free money, no? Of course not. The catch is that cryptos are priced based on the ownership share of the network that one coin represents. In other words, if you have x% staking rewards the supply will increase by x% and the price will decrease by x% on average (assuming all coins are staked). Staking is the equivalent of a company issuing new shares and paying out the proceeds as dividends. All else being equal, the net effect on shareholder value is 0.

>> No.17692351

Coin staking is a scam 99.9% of the time

>> No.17692383

>>17690252
because it is lmao

>> No.17692416

>>17692351
Redpill me on Tezos then, it seems to be the biggest steaking coin out right now. I know how LINK wants to handle it, but Tezos seems live and easily available right now. Is it just a proof of stake coin or what's going on?

>> No.17692494

>>17690252
Higher risk; higher reward.

Given how high risk crypto truly is, 5-10% isn't even a remotely appropriate return.

>> No.17692929

jews havent found a way to be the racket middlemen, yet

>> No.17692946

>>17692004
If it sounds too good to be true, it's probably is.