Bitcoin Forum

We're doing a market survey on BTC investment protocol on behalf of DINNGO. The findings of this survey will be published in this post.

This survey will take ~3 mins of your time.

Survey link: https://dinngosurvey.typeform.com/to/W1sdjs?from=bbd (https://dinngosurvey.typeform.com/to/W1sdjs?from=bbd)

Why do we publish this survey?

Lending and Borrowing on Ethereum have become more and more popular. It shows that rather being a hodler, people want to re-invest crypto to make extra earning. Meanwhile, BTC remains its dominance in the crypto market over 60%. We believe in Bitcoin’s potential and HODL it tight. What do you think a platform that you can re-invest BTC in a non-custodial way (e.g., into Compound.Finance)? We would like to know how likely you will use this kind of protocol. We highly appreciate it if you can help us out!

You can find our previous survey results here: https://medium.com/dinngo-exchange/digital-currency-exchange-survey-3d491f56d877 (https://medium.com/dinngo-exchange/digital-currency-exchange-survey-3d491f56d877)

Strictly speaking, you are not HODLing it if you are lending it out. In the first place, if you are lending your Bitcoin out, it must mean you are letting it go off your ownership, off from your wallet where you have your own private keys. So you are not really HODLing it, you are letting a third party manage it on your behalf and in exchange for some interest. If your Bitcoin is in Binance, for example, and you are taking the opportunity to earn from it through its lending services, it is not anymore your Bitcoin in a sense; you are already entrusting it to them.

Anyway, I'm arguing along the line of "not your keys, not your Bitcoin."

Same here. Not my keys, not my Bitcoin.

Or maybe after some kind of smart contract on bitcoin comes to reality.

Very unlikely. Holding bitcoin on my own generates me some trickle of profit anyway so why would I want to give it out to a third-party? Not that I am being so hard on the money, it's just that it isn't worth it to lend bitcoin as of the moment while the market is rising. Also, there's a huge chance that the loan might be defaulted and you are left with a collateral whose value isn't even great, nor can even match what your bitcoin's value should be when you got the collateral.

There is very little money to be made by lending out BTC, the money made is lending out USD in the crypto markets. Generally the yearly rate for lending USD or USDT or syntethic USD is 10% which is crazy high considering what most get with their savings account. BTC lending is very little.

Only time when its worth lending BTC is during a bear market or if there is a crazy alt coin market such as Q1 2018, where people are selling BTC and buying alts. So there is demand to borrow BTC to sell for an alt. Right now we are seeing a little of this since ETH, XRP, LTC, BCH are all rallying however the daily interest for BTC Is still very low compared to lending USD.

Correct me if I am wrong, your business model must be similar to that of a bank. Those who deposit money in their bank account/s strongly believes that the money is 100% theirs but the bank also uses those funds and invest it elsewhere. The bank takes a large chunk of the profits while paying a small interest to the depositors.

 

I would lend my Bitcoins only if there's a big enough collateral-altcoins like ethereum,ripple or monero that have somewhat stable prices.The main problem is,will someone borrow bitcoins,when the BTC price is going up?HAve you asked yourself that question?
Anyway,technically speaking,you can't lend bitcoins while still HODLing them.
You can't eat the cake and keep it for yourself at the same time. ;D
I don't wanna complete your survey because I don't trust the link that you provided.If you were using SurveyMonkey or Google Surverys I would have gladly participated in your survey.

You sure lending bitcoins out is a good option when you know that bitcoins cannot be tracked entirely and if something would happen then it would be no one's fault ,
If there is a trusted company that you know and have done business with in the past too then it's a whole different level , you can easily choose the collateral  but then again you know the market it could go into loss instantly or get high in matter of seconds so , I don't think you should risk that , better you do it yourself, trading will be more beneficial anytime according to me.

I am researching the same. Looking forward to the findings from you guys!

Yes, this seems like the most appropriate question.
Like others, its not your key, its not your BTC. I think you understand enough about this statement. Something that you cannot fully control then you cannot control it if something bad happens.

Opening a loan service might not be new for a businessman to explore. Many people will use it as an effort to get profits through the interest rates offered. But if bitcoin is lent on a trusted platform, it might produce a little sense of security because they might not carry off some of it because it will only damage their reputation.

Like the binance who opened a loan service, I think anyone who uses this service will benefit rather than holding some bitcoin in a wallet. But I think it will be more effective if this loan is done with assets that do not have high price volatility such as stable coins.

That isn't enough though as a collateral right? In the first place, holding a collateral for something as volatile as Bitcoin is problematic enough. Bitcoin changes everyday, but your collateral does not right? And if you actually use volatile altcoins, then both of them are changing right? Even if we use stable coins like USDT, fact is, BTC still changes in its price everyday.

The idea seems dead to me tbh. As Bitcoin stands to be transacted anonymously, and any type of lending services would probably be done on the internet, it lacks the idea of secure and safe lending service imo.

I'm into this idea but it got me thinking what if the platform that I lent my bitcoins suddenly closed or hacked, then what happens to my btc? it's lost forever unless they will compensate for the damage that has been done.

I'll probably lend some but for the people that I know.

responding honestly and sincerely i prefer to have my bitcoin in my wallet and in my exchange accounts to do day trade and i also prefer to have my bitcoin in my sports betting account because i will at least know that if i lose bitcoin it was just my fault unless of course the exchange and gambling site closes and runs away with my bitcoin.

I want to profit from my BTC but don't want to convert it into any other forms as I believe bitcoin price is still the increase. Every lending platform provides a low interest on BTC, they are not to be blamed as no people would want to borrow in BTC to use it as money as it's too volatile. Only reasonable place to invest so far for me has been the bankroll of Casinos.  

Totally agree with "not your keys, not your Bitcoin".

Thank you for the responses from you guys.
The original question may mislead. Let us revise the question to: What do you think a platform that you can re-invest BTC in a non-custodial way (e.g., into Compound)?
The platform doesn't have your key. What you need to "trust" is the protocol such as smart contract, atomic swap and Compound protocol.

This survey service is Typeform that is similar to SurveyMonkey or Google Forms.  ;)

We most likely to lend our bitcoin to someone that we totally know and actually, it's to risky to lend your money to someone that you don't know because their is a big tendency that they will not pay you. Speaking of re-investing with bitcoin all my profit from other altcoin will be use to invest in bitcoin and basically, I don't intend to spent it with nothing. If I'm gonna lend my bitcoin to someone that I know maybe I will do it in a bitcoin base and not price base like if my friend borrow .002 bitcoin to me he will have to pay me the same amount of bitcoin regardless of its market value on the day he will pay me back.

We all know that cryptocurrency and the bitcoin is one of the best coin today that is good for investment and having a profit or income and also by the market price it gains from the previous years now it gains a lot of popularity and investments to the people by that it is better if we grab the opportunity to make more money. Today there are a lot of people use the bitcoin as their payment for their bills, buying grocery and transfer funds to their banks with the use of crypto. For me I want to buy bitcoin and invest in trading because we all know from the previous market price of the bitcoin is came from the 6k dollars and it was good for investment and I grab it when the price reaches over 10k dollars it has a huge profit to me without doing anything and sometimes buy low and sell high is one my technique to earn more money.

This might probably be the risk of investing your bitcoin to lend it to a company, there's no assurance that you have a money back, though, I do consider that an investment to be invest again will surely return higher profit. On the other hand, we need to risk too much as well.

I am curious about the survey and the company itself, but I don't think I could be the one to answer it as I am not into bitcoin lending, I might just wait for the result and see how the company performs in the latter future.

when you invest in bitcoin then you should not use money from savings because if you use the money from loans it will have a very high risk and you better invest using your own money so that when prices fall you don't bother thinking about money and should replace money from your loan.

Re-investing in btc have to do with personal decision, I'll rather do this on my own by being a daily trader rather than lending my btc to any platform. Although they're some that still legit out there but being a chief pilot of your investment is always a secured method for me.
Is all about setting out your goals and target from your daily trading, Although some traders still find difficult to be contented with their little profits in btc trading. Btc market now showing a good momentum with other aItcoins, So HODLing is the best option for me now rather than investing my btc for any platform that can get hack.

If it's a non custodial way, how you are going to utilize any user's BTC? I am the holder of my private key and if I don't share the key with you, you don't have the access to use it? Then from where we will earn? May be I didn't get your idea.
And, if I had to give access of my fund to someone else, then a BIG no of course.

also here i agree that even how much Bitcoin are we talking here yet It s not our bitcoin when the amount is not on our hands as the private Keys dictate the ownership of currency.
practicality is perfect strategy mate,because people sometimes need to invest their important money and in the end when the price fell down they are regretting their decisions.

Well, I think investing is really that risky but if you really know what to do, what I mean is that you are well informed about everything especially on investing. That risks might be lowered in the probability of losing money because some investors really investing their money without knowing important information about the project. Lending your money on a secure profit is awesome but lending your money on a risky one but you are well-informed about it is better I think. It is all about the knowledge you have, what are you gonna do if you are thinking about the lose, how are you gonna win if you are not trying right?

Indeed, but for me as of now, it is actually depending on a person if he really wants to invest his money and wants to trust BTC again. Maybe at some point of his journey here, he can really do some better to earn BTC, it is not wrong to take a risk again since the market is recovering as of now.

i think that would be cool if only the Return on Investment is good enough or at least better than existing ones. Currently, Midas and Stakecube offer such investment plans and i prefer Midas to that of Stake cube because Midas offers 15% weekly. You can imagine the profit you would have made within this short bull run that occurred a week ago.
Adding this feature to your exchange will surely get you more investors and traders.

You need first to manage risk if you are talking about investing in Bitcoin and you should always know how Bitcoin will work and how the word volatile being applies there. Always bear this in your mind that only spend money to invest in what you can afford. Not your whole savings or a monthly family budget. Because investing in Bitcoin is not for short term purposes.

Back to OP, that is a very risky decision. Have your own money to invest in Bitcoin. A lender is very risky, why not to keep your won coin in your wallet.