Bitcoin Forum

Other => Beginners & Help => Topic started by: Minecache on November 28, 2013, 03:25:09 AM



Title: Bitcoin Interest Rate
Post by: Minecache on November 28, 2013, 03:25:09 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?


Title: Re: Bitcoin Interest Rate
Post by: qsrab on November 28, 2013, 03:34:43 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

Banks pay interest because they lend your deposit to people at a higher rate. It also protects you against inflation.
Bitcoins are more like gold. Interest isn't paid when you store your gold somewhere. both gold and bitcoins are hard to lend. Bitcoins even have deflation.


Title: Re: Bitcoin Interest Rate
Post by: Minecache on November 28, 2013, 03:40:20 AM
Thanks. By deflation my bits are losing value?  ???


Title: Re: Bitcoin Interest Rate
Post by: BitThink on November 28, 2013, 03:42:17 AM
Thanks. By deflation my bits are losing value?  ???
It's the other way. Inflation means losing value and deflation means appreciation.

But to be more presice, BTC is still in the inflation stage and around 4000 coins are mined everyday.


Title: Re: Bitcoin Interest Rate
Post by: qsrab on November 28, 2013, 05:21:47 AM
Thanks. By deflation my bits are losing value?  ???
It's the other way. Inflation means losing value and deflation means appreciation.

But to be more presice, BTC is still in the inflation stage and around 4000 coins are mined everyday.

Inflation is when BTC prices are going up. Btc is in the deflationary stage.


Title: Re: Bitcoin Interest Rate
Post by: bill.joy on November 28, 2013, 07:28:34 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

Banks pay interest because they lend your deposit to people at a higher rate. It also protects you against inflation.
Bitcoins are more like gold. Interest isn't paid when you store your gold somewhere. both gold and bitcoins are hard to lend. Bitcoins even have deflation.

There are gold loan interest rates. Any valuable asset can be loaned for a rate in return. Gold is hard to loan because it can be forged.  Bitcoin does not have this shortcoming. Gold is also indivisable, hard to spend for daily use, thus not suitable for use a money nowadays. But Bitcoin is a combination of gold and money. Anything you do with money can be done with Bitcoin.

In theory bitcon can be deposited in a bitcoin-bank with an interest rate. People may ask where does that interest come from since it's a deflationary currency. The answer is: as long as there's business going on, as long as there's investment and return going on, there can be bitcoin interest rate. In short the interest rate comes from the risk the invester takes (the bank being default, company going bankrupt...). In other words it comes from a successful business that is financed by the bitcoins lent. It comes from the bitcoins (or dollars or any other currencies) that the cusotmers spent on buying that services from THAT business.


Title: Re: Bitcoin Interest Rate
Post by: bill.joy on November 28, 2013, 07:57:48 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

Banks pay interest because they lend your deposit to people at a higher rate. It also protects you against inflation.
Bitcoins are more like gold. Interest isn't paid when you store your gold somewhere. both gold and bitcoins are hard to lend. Bitcoins even have deflation.

There are gold loan interest rates. Any valuable asset can be loaned for a rate in return. Gold is hard to loan because it can be forged.  Bitcoin does not have this shortcoming. Gold is also indivisable, hard to spend for daily use, thus not suitable for use a money nowadays. But Bitcoin is a combination of gold and money. Anything you do with money can be done with Bitcoin.

In theory bitcon can be deposited in a bitcoin-bank with an interest rate. People may ask where does that interest come from since it's a deflationary currency. The answer is: as long as there's business going on, as long as there's investment and return going on, there can be bitcoin interest rate. In short the interest rate comes from the risk the invester takes (the bank being default, company going bankrupt...). In other words it comes from a successful business that is financed by the bitcoins lent. It comes from the bitcoins (or dollars or any other currencies) that the cusotmers spent on buying that services from THAT business.

The only thing preventing interest rate from happening is that bitcoin is not yet acknowledged by law as an asset, so it is hard to sue anyone if he doesn't return your bitcoin. Once it becomes a legal asset, I don't see why interest rate won't happen.

Looking into the future, there will be bitcoin bankers, and bitcoin-backed fiat. I can imagine that the technically versed may be able to manage their bitcoin asset on their one and potentially able to manage bitcoin assets for other people, and thus become bitcoin bankers. While the non-technical people who don't understand the technology enough thus cannot take the risk, will have to use bitcoin-backed fiat. This is similar to the ancient times, when the nobel class use gold, and the poor use coins minted by the king.


Title: Re: Bitcoin Interest Rate
Post by: Minecache on November 28, 2013, 01:07:40 PM
So I am confused, are these things inflating or deflating? I'm guessing inflating erodes their value so we must be deflating? And what happens when we reach 21000000 Bitcoins on the market?


Title: Re: Bitcoin Interest Rate
Post by: Lloydie on November 28, 2013, 02:00:31 PM
Btcs are inflating as they are still being issued at a rate of 4,000 per day.  However, the value of each Btc is rising due to demand. Demand is outstripping available supplies.

From that perspective, even though btcs are in the inflation phase, they are overall considered to be deflationary because goods and services are falling in price when priced in btcs.



Title: Re: Bitcoin Interest Rate
Post by: Minecache on November 28, 2013, 02:10:49 PM
So a currency can both inflate and deflate at the same time?


Title: Re: Bitcoin Interest Rate
Post by: WayTooGosu on November 28, 2013, 02:21:47 PM
I do not think any site pays interest for BTC. You can try storing it on cloudmining sites.


Title: Re: Bitcoin Interest Rate
Post by: bill.joy on November 28, 2013, 03:10:41 PM
So a currency can both inflate and deflate at the same time?

inflationary in short term (# coins is still increasing thru mining), and deflationary in long term (after reaching the 21M limit the # coins will start to decrease). But this 21M hard limit has a very strong psychological effect even in short term, so people have been trying to save as many bitcoins as they can, knowing that the bitcoin supply will eventually decrease. Thus even though the total number of bitcoins is still increasing in short term, the bitcoins truely in circulation (being spent daily buying goods) are already decreasing. (It's increasing in terms of USD value, but descreasing in bitcoins number). Not very long ago there must have been someone who spent thousands of bitcoins buying a hamburger. That was circulation. But now how many bitcoins can be earned by selling a hamburger?

So over all it is a deflationary currency. But bitcoin's deflationary nature won't cause an economic recession simply because it is not the only currency. Don't worry about it. The world economy will move on happily because we still have other currencies like the fiat. In ancient times, we had the gold standard. Gold did not cause economic recession also because it was not the only currency. The nobel class uses gold, while at the same time they minted coins and printed paper notes, which were very inflationary, for the poor people to use.


Title: Re: Bitcoin Interest Rate
Post by: Gator-hex on November 28, 2013, 03:18:12 PM
Bitcoin is a deflationary currency, so doesn't need interest rates.

As more dollars are printed they buy you less Bitcoins.

This is because the supply of dollars is increasing faster than the supply of Bitcoins.

Inflation is a currency phenomenon. The more money you create the less it's worth.

My fiat bank account is paying 1% while inflation is running at 11%, in effect they're stealing 10% of the value a year to bail out the banks. Inflation is a stealth tax.

As nobody can print $85bn new Bitcoins a month to keep up with the Fed, the value of Bitcoin rises instead.


Title: Re: Bitcoin Interest Rate
Post by: Sindelar1938 on November 28, 2013, 04:32:52 PM
No, btc is deflationary so you don't need to earn interest


Title: Re: Bitcoin Interest Rate
Post by: odolvlobo on November 28, 2013, 07:29:42 PM
So a currency can both inflate and deflate at the same time?

The meanings of "inflation" and "deflation" are ambiguous.

In economics, "inflation" is an increasing money supply. It may or may not result in increasing prices. In layman's terms, "inflation" means increasing prices of goods, which may or may not be caused by an increasing money supply. "Deflation" is the same, except opposite.

In economic terms, Bitcoin is currently inflationary because its money supply is increasing. When no more bitcoins are mined, then Bitcoin becomes deflationary because its money supply can only decrease as bitcoins are lost.

In layman's terms, bitcoin is currently (and probably will always be) deflationary, because the demand for bitcoins is increasing much faster than the supply, and as the value of a bitcoin increases, the prices of goods decrease.


Title: Re: Bitcoin Interest Rate
Post by: nico on May 09, 2014, 11:24:06 AM
Hello

What a risk free BTC interest rate could look like ?

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2432367

 ;)


Title: Re: Bitcoin Interest Rate
Post by: bryant.coleman on May 09, 2014, 03:10:38 PM
I think that right now the only Bitcoin exchange which is offering interest on your deposits is Vircurex. But unfortunately, that exchange have been hacked multiple times in the past. So not that secure to store coins there.


Title: Re: Bitcoin Interest Rate
Post by: superresistant on May 09, 2014, 03:18:34 PM
I think that right now the only Bitcoin exchange which is offering interest on your deposits is Vircurex. But unfortunately, that exchange have been hacked multiple times in the past. So not that secure to store coins there.

What happen with the frozen accounts on Vircurex ?


Title: Re: Bitcoin Interest Rate
Post by: geraFoerra on May 09, 2014, 03:30:03 PM
I seen Bitcoin interest services like pirate or TradeFortress but somehow they just dissapeared one day with the Bitcoin deposits, I dunno why  :D


Title: Re: Bitcoin Interest Rate
Post by: DannyHamilton on May 09, 2014, 03:46:32 PM
In layman's terms, bitcoin is currently (and probably will always be) deflationary, because the demand for bitcoins is increasing much faster than the supply, and as the value of a bitcoin increases, the prices of goods decrease.

Actually, over the recent few months, bitcoin has been inflationary both in economic terms AND layman's terms.

http://bitcoincharts.com/charts/bitstampUSD#rg180zigHourlyzczsg2013-11-29zeg2014-05-09ztgSzm1g10zm2g25

http://i.imgur.com/qgp8iZd.png


Title: Re: Bitcoin Interest Rate
Post by: whitelife on May 09, 2014, 04:33:18 PM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

No because your bitcoin are not being used for something else (like investement or being lended to other people as with banks) in fact it should be the opposite lol since they are providing a service by storing your coins, and don't forget don't leave much of your coins on exchanges or else you risk to get goxed


Title: Re: Bitcoin Interest Rate
Post by: Tammy Chan on May 10, 2014, 09:44:18 AM
Thanks. By deflation my bits are losing value?  ???
It's the other way. Inflation means losing value and deflation means appreciation.
But to be more presice, BTC is still in the inflation stage and around 4000 coins are mined everyday.
Inflation is when BTC prices are going up. Btc is in the deflationary stage.

In economics, "inflation" is an increasing money supply. It may or may not result in increasing prices. In layman's terms, "inflation" means increasing prices of goods, which may or may not be caused by an increasing money supply. "Deflation" is the same, except opposite.

So, in economics terms, bitcoin will always be in inflation, until block reward become zero, right?


Title: Re: Bitcoin Interest Rate
Post by: DannyHamilton on May 10, 2014, 12:50:24 PM
So, in economics terms, bitcoin will always be in inflation, until block reward become zero, right?

Maybe.

However, there will probably always be people losing small amounts of bitcoins (hard drive crash, lost password, deleted private key, etc).

Meanwhile, the block reward will get VERY small:
7.03124928 BTC per day in 2050
0.10986192 BTC per day in 2075
0.00085824 BTC per day in 2100
0.00001296 BTC per day in 2125
0.00000144 BTC per day in 2139

If the amount of bitcoins lost each day from the total supply is more than the amount of new bitcoins created, then you could say that is when deflation begins.


Title: Re: Bitcoin Interest Rate
Post by: batmanbad on May 10, 2014, 02:06:19 PM
Wait so I had the similar mind as well this, but I wont be alive to see those prices since its prob in the near 2140.


Title: Re: Bitcoin Interest Rate
Post by: monim1 on May 10, 2014, 04:33:27 PM
Thanks. By deflation my bits are losing value?  ???
It's the other way. Inflation means losing value and deflation means appreciation.

But to be more presice, BTC is still in the inflation stage and around 4000 coins are mined everyday.

Inflation is when BTC prices are going up. Btc is in the deflationary stage.
I am also newbie. Its clear to me that I will not get any interest. One member saying that BTC is in the inflation stage, other saying BTC is in the deflationary stage. Its quite confusing to me. If 4000 coins are mined everyday than BTC must be in inflationary stage.


Title: Re: Bitcoin Interest Rate
Post by: BitThink on May 13, 2014, 10:29:57 AM
Yes, you are correct.


Title: Re: Bitcoin Interest Rate
Post by: muxxxamed on May 13, 2014, 10:42:53 AM
Of course NO! There is no inflation so no interest for keeping money. Welcome to the new world without banks and              debts.))))
Дoбpa!=)


Title: Re: Bitcoin Interest Rate
Post by: Chemistry1988 on May 14, 2014, 09:02:02 PM
If 4000 coins are mined everyday than BTC must be in inflationary stage.

Yes, you are right.

Of course NO! There is no inflation so no interest for keeping money. Welcome to the new world without banks and              debts.))))
Дoбpa!=)

Maybe you could read post #16.
And to your surprise, borrowing and lending (with interests) exist in the bitcoin world. FYR: https://bitcointalk.org/index.php?board=65.0


Title: Re: Bitcoin Interest Rate
Post by: bryant.coleman on May 15, 2014, 08:40:19 AM
I think that right now the only Bitcoin exchange which is offering interest on your deposits is Vircurex. But unfortunately, that exchange have been hacked multiple times in the past. So not that secure to store coins there.

What happen with the frozen accounts on Vircurex ?


I don't think that Vircurex pays any sort of interest on frozen or inactive accounts. However, I am not sure, and you will have to raise a support ticket to make sure of that.


Title: Re: Bitcoin Interest Rate
Post by: Kprawn on May 16, 2014, 12:14:42 PM
Is there a site, where you can draw reports on what the rate was daily for say the last year.

Or year on year?

I only recently started looking into "Bitcoins" and want to see, how it fluctuated from year to year.

Hope someone can help.

You just see people making statements like ..."In 2009 1 bitcoin was 0.0000001 cents and now it's $400.

Thanks for any reply.


Title: Re: Bitcoin Interest Rate
Post by: Foxpup on May 16, 2014, 02:07:21 PM
Is there a site, where you can draw reports on what the rate was daily for say the last year.
bitcoincharts.com/charts/ (http://bitcoincharts.com/charts/)


Title: Re: Bitcoin Interest Rate
Post by: bestsponsor on May 16, 2014, 04:13:34 PM
Just buy several stable POS coins and get income from 20 to 100% per year.


Title: Re: Bitcoin Interest Rate
Post by: r34tr783tr78 on May 18, 2014, 06:27:36 PM
You can get interest on your bitcoin on at least two exchanges:
www.bifinex.com you have to lend the bitcoins to other traders, the rate is low, but it's trustworthy
www.mcxnow.com you don't have to lend the coins, interest is paid just to have them there. On the issue of trust, opinions are divided. The owner adopted some controversial commercial practices, but he warned everyone to withdraw their money when he limited the trading at the exchange and came back


Title: Re: Bitcoin Interest Rate
Post by: bl4kjaguar on May 18, 2014, 06:30:35 PM
Banks pay interest because they lend your deposit to people at a higher rate.
That is not true; banks are not allowed to loan your deposited funds.


Title: Re: Bitcoin Interest Rate
Post by: r34tr783tr78 on May 18, 2014, 06:33:51 PM
Lending the money that is deposited on your account is the goal of any bank.
I think you wrote something you didn't want or, at least, your sentence isn't clear.


Title: Re: Bitcoin Interest Rate
Post by: bl4kjaguar on May 18, 2014, 06:49:18 PM
Lending the money that is deposited on your account is the goal of any bank.
That is not true because bank loans are generated ex nihilo.

Professor Hyman Minsky once wrote “Banking is not money lending", which is to say: Banks do not have money to loan as a matter of fact.
Source: http://www.positivemoney.org/2013/06/banks-dont-lend-money-guest-post-by-michael-reiss/
Related source: http://www.forbes.com/sites/francescoppola/2014/01/21/banks-dont-lend-out-reserves/

The bank would first need your permission because a deposit is not property; it is a debt owed to the depositor.
I posted more info to this thread: https://bitcointalk.org/index.php?topic=521992.msg6039543#msg6039543


Title: Re: Bitcoin Interest Rate
Post by: r34tr783tr78 on May 18, 2014, 08:07:52 PM
Under a formal perspective, your money is still at your account, so the bank isn't lending YOUR money, is creating money based on your money. True.
But if you opened an account with paper money, YOUR money is going to be lent or paid to others. It won't be sitting there waiting for you. And they don't need your consent to lent it, it's implied on all banking regulations.
And, in any case, they will use your money as the base to lend to others, by creating banking money.
It's the base of fractional reserve Lending.


Title: Re: Bitcoin Interest Rate
Post by: bl4kjaguar on May 18, 2014, 11:26:02 PM
But if you opened an account with paper money, YOUR money is going to be lent or paid to others.

You are incorrect; banks never lend out reserves, and they are not in the business of loaning money.

Did you follow the links which I graciously provided?

Here is Forbes magazine saying the same thing:
Quote
It creates this “from thin air”, not from existing money: banks do not “lend out” existing deposits, as is commonly thought.
http://www.forbes.com/sites/francescoppola/2014/01/21/banks-dont-lend-out-reserves/

Please verify this for yourself and then we can resume the discussion.


Title: Re: Bitcoin Interest Rate
Post by: ranlo on May 18, 2014, 11:36:43 PM
So a currency can both inflate and deflate at the same time?

The number is inflating. The value is deflating. Two separate things you're looking at.

Overall we'd say that the coins, as a whole, are deflating.


Title: Re: Bitcoin Interest Rate
Post by: Malin Keshar on May 18, 2014, 11:51:21 PM
ever heard about inflation related to price. If a gov prints money, people say that they have inflation because the price is rising, not because there is more paper supply, but because the price is rising


vircurex offers interests on bitcoin balances (if you have 1 btc or more), payment made every 6 hours, but they have been hacked this year, so up to you take the risk or not



Title: Re: Bitcoin Interest Rate
Post by: alani123 on May 18, 2014, 11:59:26 PM
Playt.in also provides interest payments.

I think it's a 4% annually with a payment every 6 hours.


Title: Re: Bitcoin Interest Rate
Post by: ranlo on May 19, 2014, 12:05:57 AM
Playt.in also provides interest payments.

I think it's a 4% annually with a payment every 6 hours.

More than that. Their average over the past month or so has been ~270% APR. That's around 25% a month.


Title: Re: Bitcoin Interest Rate
Post by: bl4kjaguar on May 19, 2014, 12:08:57 AM
InstaForex is a broker who will accept bitcoin deposits and pay 5% APR to active accounts (2% for inactive accounts), but they do not allow US citizens/residents.


Title: Re: Bitcoin Interest Rate
Post by: alani123 on May 19, 2014, 01:16:01 AM
Playt.in also provides interest payments.

I think it's a 4% annually with a payment every 6 hours.

More than that. Their average over the past month or so has been ~270% APR. That's around 25% a month.

I guess you're talking about the average of their bankrol shares wich have a much higher (but sorta unstable) yield.


Title: Re: Bitcoin Interest Rate
Post by: ranlo on May 19, 2014, 01:17:38 AM
Playt.in also provides interest payments.

I think it's a 4% annually with a payment every 6 hours.

More than that. Their average over the past month or so has been ~270% APR. That's around 25% a month.

I guess you're talking about the average of their bankrol shares wich have a much higher (but sorta unstable) yield.

I was. I didn't see any other way to invest in the site or anything. Were you referring to something different?


Title: Re: Bitcoin Interest Rate
Post by: alani123 on May 19, 2014, 01:21:50 AM
I was. I didn't see any other way to invest in the site or anything. Were you referring to something different?

Yes. Recently they added this interest on deposits I talked about. 4% annualy with 6 hour payments.

Text below from their website:
Quote
How does it work?
About every 4 hours you get interest on your confirmed balance.
Where is the money coming from?
The interest is paid from trading fees and from profit of operator owned bankroll shares.
Where to apply?
No need to do anything. Just have some balance on PLAYTIN and you will automatically start to receive interest.
Do I get interest on gambling profit?
Yes, it does not matter where your balance comes from - depositing, trading, or winning, all is fine.
When will I get the interest?
The interest payment is delayed about 2 hours to let any deposits reach the required number of confirmations.
Does it matter how long I have the balance on PLAYTIN?
The longer you have some funds on site the more often you will earn interest.
Are you using the deposited funds for anything?
No, your funds will not be used in any way. We have dedicated funds (bankroll shares) to operate the casino.
Why are you doing this?
We figured some advertising money is better spend directly to our customers.
And it is a very nice incentive for users to enable 2FA, since this is a prerequisite for receiving interest.
How much will I get?
This are the current rates:
Bitcoin   4.00%
Dogecoin   4.00%
Litecoin   4.00%
Maxcoin   4.00%
Namecoin   4.00%
Novacoin   4.00%
Peercoin   4.00%
Primecoin   4.00%
Why does PLAYTIN pay so much more than the competition?
Because we can. Our revenue is coming from the casino, not from those tiny trading fees.
Will the rate ever change?
We reserve the right to change the actual rate at any time without further notice.
I want to earn even more!
Buy yourself some bankroll shares. They have a much higher yield.


Title: Re: Bitcoin Interest Rate
Post by: ranlo on May 19, 2014, 01:38:46 AM
I was. I didn't see any other way to invest in the site or anything. Were you referring to something different?

Yes. Recently they added this interest on deposits I talked about. 4% annualy with 6 hour payments.

Text below from their website:
Quote
How does it work?
About every 4 hours you get interest on your confirmed balance.
Where is the money coming from?
The interest is paid from trading fees and from profit of operator owned bankroll shares.
Where to apply?
No need to do anything. Just have some balance on PLAYTIN and you will automatically start to receive interest.
Do I get interest on gambling profit?
Yes, it does not matter where your balance comes from - depositing, trading, or winning, all is fine.
When will I get the interest?
The interest payment is delayed about 2 hours to let any deposits reach the required number of confirmations.
Does it matter how long I have the balance on PLAYTIN?
The longer you have some funds on site the more often you will earn interest.
Are you using the deposited funds for anything?
No, your funds will not be used in any way. We have dedicated funds (bankroll shares) to operate the casino.
Why are you doing this?
We figured some advertising money is better spend directly to our customers.
And it is a very nice incentive for users to enable 2FA, since this is a prerequisite for receiving interest.
How much will I get?
This are the current rates:
Bitcoin   4.00%
Dogecoin   4.00%
Litecoin   4.00%
Maxcoin   4.00%
Namecoin   4.00%
Novacoin   4.00%
Peercoin   4.00%
Primecoin   4.00%
Why does PLAYTIN pay so much more than the competition?
Because we can. Our revenue is coming from the casino, not from those tiny trading fees.
Will the rate ever change?
We reserve the right to change the actual rate at any time without further notice.
I want to earn even more!
Buy yourself some bankroll shares. They have a much higher yield.

Interesting, I wasn't aware of that. So it's more or less a choice between a liquid deposit and getting 4% or buying shares and getting 80x that but not being able to liquidate it at its full value at any point.


Title: Re: Bitcoin Interest Rate
Post by: Harley997 on June 10, 2014, 01:00:35 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

No you will not. Exchanges are not lending you any funds, you are simply depositing funds to the exchange so you can buy/sell coins.


Title: Re: Bitcoin Interest Rate
Post by: Coef on June 10, 2014, 08:46:03 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

No you will not. Exchanges are not lending you any funds, you are simply depositing funds to the exchange so you can buy/sell coins.

Indeed, Vircurex does pay interests for your deposits, but I won't recommend anyone to do so for obvious reason.


Title: Re: Bitcoin Interest Rate
Post by: Rhesus on June 10, 2014, 09:40:47 AM
The question is, can Playt.in be trusted with larger deposits or will they just disappear one day with our coins?


Title: Re: Bitcoin Interest Rate
Post by: bitcoin_bagholder on June 10, 2014, 12:41:02 PM
Don't leave your bitcoins in a "bitcoin bank". Your coins aren't insured unlike your fiat in your fiat bank.


Title: Re: Bitcoin Interest Rate
Post by: DolanDuck on June 10, 2014, 12:47:31 PM
Don't leave your bitcoins in a "bitcoin bank". Your coins aren't insured unlike your fiat in your fiat bank.

The safest method to store bitcoins is cold storage, if you put your btc savings in other hands you can lose them all.


Title: Re: Bitcoin Interest Rate
Post by: alani123 on June 10, 2014, 01:20:36 PM
The question is, can Playt.in be trusted with larger deposits or will they just disappear one day with our coins?

I can't answer this question myself but what I can say is that I've trusted them myself in the past. And certainly I'm not the only one. About 800 shares have been sold and one is worth 1.42BTC at the moment. They've been running their website for quite a while now and they're also active in the forums. The only time I had a problem (it was in their exchange) I sent a message through the forum and it was fixed the next day. I'd defenetly trust them again but it's up to you to decide if you would do the same.


Title: Re: Bitcoin Interest Rate
Post by: Loophole on June 10, 2014, 01:21:57 PM
If you want to earn some interest with your bitcoin, you could lend it out to others https://bitcointalk.org/index.php?board=65.0.
The risk should be pretty low, if you only do so with collateral.


Title: Re: Bitcoin Interest Rate
Post by: Harley997 on June 10, 2014, 04:39:18 PM
If you want to earn some interest with your bitcoin, you could lend it out to others https://bitcointalk.org/index.php?board=65.0.
The risk should be pretty low, if you only do so with collateral.

The price of altcoins can be much more volatile then the price of BTC. There would still be the possibility that the borrower defaults and the price of your collateral crashes.

You also have the risk that the person handling your escrow scams you, even if this risk is low, it would dramatically impact your returns.


Title: Re: Bitcoin Interest Rate
Post by: ShakyhandsBTCer on June 16, 2014, 02:51:33 AM
If you want to earn some interest with your bitcoin, you could lend it out to others https://bitcointalk.org/index.php?board=65.0.
The risk should be pretty low, if you only do so with collateral.

The price of altcoins can be much more volatile then the price of BTC. There would still be the possibility that the borrower defaults and the price of your collateral crashes.

You also have the risk that the person handling your escrow scams you, even if this risk is low, it would dramatically impact your returns.

Lending BTC can be risky but the interest rate you earn is significant


Title: Re: Bitcoin Interest Rate
Post by: cech4204a on June 19, 2014, 05:11:07 AM
Well you didn't get that well. BTC is not paying interests, since you don't lend them to anyone. But you can make money like this way:

1 buy btc at 500$
2 sell btc at 600$
3 buy btc at 550$
4 sell btc at 650$

or any other way that you make more than you paid for it.


Title: Re: Bitcoin Interest Rate
Post by: KimNam on June 19, 2014, 08:12:40 AM
i prefer save my bitcoin in my local wallet instead store it to exchanger/bank/anywhere who offer us interest ;D
Well you didn't get that well. BTC is not paying interests, since you don't lend them to anyone. But you can make money like this way:

1 buy btc at 500$
2 sell btc at 600$
3 buy btc at 550$
4 sell btc at 650$

or any other way that you make more than you paid for it.
yeah trading is good way to make more BTC...
... if you buy and sell at right time.


Title: Re: Bitcoin Interest Rate
Post by: Kprawn on June 19, 2014, 11:56:53 AM
If you bought Bitcoins in 2009 and you sold it now, you would have made better interest, than ANY bank would have given you, on your money, over the same period.

Banks do not loan money, that you deposit, these days, they pay themselves and Sport sponsors and security services, and then loan from reserve banks, who print more money than they have, and then loan you money, at incredibly high interest rates, until you cannot pay your loans, and then they sell your house and get back some of the money, and the rest of the debt, are sold to "bonebreakers" at a profit, to gather profit from that... rant rant rant.  ;D

Just invest your money long term in Bitcoins, and get massive returns in 3 to 5 years from now... "If you look at the graphs, of the price of bitcoins, from 2009 until now, you would see a lot of fluctuation, but it's still a lot higher, than it was in 2009"


Title: Re: Bitcoin Interest Rate
Post by: ShakyhandsBTCer on June 20, 2014, 12:55:27 AM
Well you didn't get that well. BTC is not paying interests, since you don't lend them to anyone. But you can make money like this way:

1 buy btc at 500$
2 sell btc at 600$
3 buy btc at 550$
4 sell btc at 650$

or any other way that you make more than you paid for it.
It can be very difficult to accurately predict the highs and lows of any market, let alone the bitcoin market


Title: Re: Bitcoin Interest Rate
Post by: Shogen on June 20, 2014, 02:32:39 AM
Just invest your money long term in Bitcoins, and get massive returns in 3 to 5 years from now... "If you look at the graphs, of the price of bitcoins, from 2009 until now, you would see a lot of fluctuation, but it's still a lot higher, than it was in 2009"

That's true. You should consider bitcoin a long-tern investment, and you don't need to get excited or worried for the daily ups and downs.


Title: Re: Bitcoin Interest Rate
Post by: Shogen on June 20, 2014, 02:48:49 AM
If you want to earn some interest with your bitcoin, you could lend it out to others https://bitcointalk.org/index.php?board=65.0.
The risk should be pretty low, if you only do so with collateral.

The price of altcoins can be much more volatile then the price of BTC. There would still be the possibility that the borrower defaults and the price of your collateral crashes.

You also have the risk that the person handling your escrow scams you, even if this risk is low, it would dramatically impact your returns.

People lending out btc is usually looking for 110%-120% LTC collateral, and the loan is usually a short-term one.
Of course, there are some risk, but you are rewarded with interests. :)


Title: Re: Bitcoin Interest Rate
Post by: Harley997 on June 21, 2014, 05:41:01 PM
If you want to earn some interest with your bitcoin, you could lend it out to others https://bitcointalk.org/index.php?board=65.0.
The risk should be pretty low, if you only do so with collateral.

The price of altcoins can be much more volatile then the price of BTC. There would still be the possibility that the borrower defaults and the price of your collateral crashes.

You also have the risk that the person handling your escrow scams you, even if this risk is low, it would dramatically impact your returns.

People lending out btc is usually looking for 110%-120% LTC collateral, and the loan is usually a short-term one.
Of course, there are some risk, but you are rewarded with interests. :)

LTC is usually generally safe collateral but any other alt has a very good chance that there would be a loss in the event of a default


Title: Re: Bitcoin Interest Rate
Post by: davidgdg on June 27, 2014, 08:40:25 AM
You can earn interest on BTC deposits through Bitfinex. The funds are loaned to traders taking a short position. The risk you take is the solvency of Bitfinex. The rates are very low. About 1.5% p.a. But in a way, that is quite reassuring.


Title: Re: Bitcoin Interest Rate
Post by: polynesia on June 27, 2014, 03:18:11 PM
You can earn interest on BTC deposits through Bitfinex. The funds are loaned to traders taking a short position. The risk you take is the solvency of Bitfinex. The rates are very low. About 1.5% p.a. But in a way, that is quite reassuring.

Nice to know that there are people taking short positions as well.  ;D


Title: Re: Bitcoin Interest Rate
Post by: Tammy Chan on June 27, 2014, 04:23:58 PM
You can earn interest on BTC deposits through Bitfinex. The funds are loaned to traders taking a short position. The risk you take is the solvency of Bitfinex. The rates are very low. About 1.5% p.a. But in a way, that is quite reassuring.

Nice to know that there are people taking short positions as well.  ;D

IMO, the margin trading is the main selling point of bitfinex. https://www.bitfinex.com/pages/howitworks#margin-trading


Title: Re: Bitcoin Interest Rate
Post by: unpure on June 27, 2014, 05:02:41 PM
Just dice used to pay around 30% rate on bitcoin as an investment.



Title: Re: Bitcoin Interest Rate
Post by: Tammy Chan on June 27, 2014, 05:14:13 PM
Just dice used to pay around 30% rate on bitcoin as an investment.

That's the average return rate, but too bad the opportunity is gone now. :(

Our recent weekly returns have been:

Mar  3 2014    -0.71%
Mar 10 2014    -0.14%
Mar 17 2014     0.41%
Mar 24 2014     0.80%
Mar 31 2014     0.79%
Apr  7 2014     1.35%
Apr 14 2014     0.90%
Apr 21 2014     1.01%
Apr 28 2014     0.85%
May  5 2014     0.56%
May 12 2014     0.32%
May 19 2014     1.05%
May 26 2014     0.35%
Jun  2 2014     0.22%
Jun  9 2014     2.06%
Jun 16 2014     0.22%
Jun 23 2014     0.83%

That's an average (adding them up and dividing by 17) of 0.64% per week or (multiplying by 52) 33.25% per year.


Title: Re: Bitcoin Interest Rate
Post by: ajareselde on June 27, 2014, 08:32:23 PM
Just dice used to pay around 30% rate on bitcoin as an investment.

That's the average return rate, but too bad the opportunity is gone now. :(

Our recent weekly returns have been:

Mar  3 2014    -0.71%
Mar 10 2014    -0.14%
Mar 17 2014     0.41%
Mar 24 2014     0.80%
Mar 31 2014     0.79%
Apr  7 2014     1.35%
Apr 14 2014     0.90%
Apr 21 2014     1.01%
Apr 28 2014     0.85%
May  5 2014     0.56%
May 12 2014     0.32%
May 19 2014     1.05%
May 26 2014     0.35%
Jun  2 2014     0.22%
Jun  9 2014     2.06%
Jun 16 2014     0.22%
Jun 23 2014     0.83%

That's an average (adding them up and dividing by 17) of 0.64% per week or (multiplying by 52) 33.25% per year.

i wouldnt trust anyone giving more than 10% interest/year.
there is just too much bad history, remember the pirate ?


Title: Re: Bitcoin Interest Rate
Post by: Nathan101 on June 28, 2014, 08:28:03 AM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

Banks pay interest because they lend your deposit to people at a higher rate. It also protects you against inflation.
Bitcoins are more like gold. Interest isn't paid when you store your gold somewhere. both gold and bitcoins are hard to lend. Bitcoins even have deflation.
I agree with you. I haven't found any site which is providing such kind of interest for the deposit of BTC.


Title: Re: Bitcoin Interest Rate
Post by: ShakyhandsBTCer on June 28, 2014, 05:25:51 PM
If I deposit some Bitcoins with a trader like Kraken shouldn't I be earning interest on my bits?

Banks pay interest because they lend your deposit to people at a higher rate. It also protects you against inflation.
Bitcoins are more like gold. Interest isn't paid when you store your gold somewhere. both gold and bitcoins are hard to lend. Bitcoins even have deflation.
I agree with you. I haven't found any site which is providing such kind of interest for the deposit of BTC.
Unless you want the site to operate on a frictional reserve system and lend out your coins you are not going to earn interest on them


Title: Re: Bitcoin Interest Rate
Post by: CAPTcoin on June 28, 2014, 08:46:49 PM
Some sites pay interest, like mcxnow.

But it's safer to keep your coins yourself, otherwise there's a risk.

You need to control the private keys.


Title: Re: Bitcoin Interest Rate
Post by: Tammy Chan on June 29, 2014, 12:55:55 AM
i wouldnt trust anyone giving more than 10% interest/year.
there is just too much bad history, remember the pirate ?

Well, the JD case is not really interest but investment returns.
And doog has proved his trustworthiness before and once again after JD stopped all betting a few days ago.

But, I do agree that many of the "investment programs" have turned out to be scams, such as Pirateat40 and TF...