Delta Financial Offers Interest-Bearing Bitcoin Accounts

[commandrix]

So. Financial institutions are beginning to take the tack of, "If you can't beat 'em, join 'em." Good, bad, ugly? http://www.coindesk.com/delta-financial-offers-interest-bearing-bitcoin-accounts/

[gweedo]

I can see people are taking the pirateat40 model.

For any newbies, pirateat40 had a ponzi scheme, which first started off him trying to day trade the funds to get the 7% he was offering.

[keithers]

I can see people are taking the pirateat40 model.

For any newbies, pirateat40 had a ponzi scheme, which first started off him trying to day trade the funds to get the 7% he was offering.

That definitely cannot end well.   You may as well just start up something similar, and then just play prime dice with everyone's money.   You could offer 100% returns in an hour...lol

[odolvlobo]

Delta Financial is a Bitfinex clone. Basically, you provide funds that Delta Financial loans out for margin trading. If the trader goes bust, Delta Financial is supposed to cover it. If Delta Financial goes bust, you lose your coins.

[00null]

Since some of you have never seen a Bitcoin site paying interest... there are a few Bitcoin sites like playtin (fixed rate) or mcxnow (variable rate) that really do this.

[LiteCoinGuy]

be careful.

[Colonel32]

So. Financial institutions are beginning to take the tack of, "If you can't beat 'em, join 'em." Good, bad, ugly? http://www.coindesk.com/delta-financial-offers-interest-bearing-bitcoin-accounts/

Thats good to hear.

So the Bitcoin Libor Rate must be good right now.... errr.
Interest offered on Btc invariably = Ponzi

Just saying.

[HeliosAct]

Does anyone know any more details or have experience with this site?

From what I could gather:
Wilkins Chung, Michael Douglas and Euwyn Poon all come from the mobile gaming industry. Granted they received funding through Y Combinator, but that was for those ideas.
Euwyn Poon is a Comp. Sci major and a J.D. and has founded Optask (their site doesn't load), which seems kind of like fiverr.
They all seem fairly young, mid twenties - thirties.
I see that they're incorporated in Hong Kong.

If anyone has any other info to add about service they provide or other information please let me know.

Thanks!

[davidgdg]

5% p.a. is high. Bitfinex is only ~ 1.5%.

Realistically until either a blue-chip firm joins the field or somebody comes up with a multi-sig type solution, the solvency risk is just too high for the return involved. 

[BitCoinDream]

So. Financial institutions are beginning to take the tack of, "If you can't beat 'em, join 'em." Good, bad, ugly? http://www.coindesk.com/delta-financial-offers-interest-bearing-bitcoin-accounts/

Bitcoin is a deflationary currency by nature and it is still in its early infancy. As per current price, it has rose 600% in last 4 years. Storing bitcoin at some institution even for some 7% return is utter foolishness and risking one's own wealth. Should be avoided at any cost.

p.s. I dont get the fact why CoinDesk covers this kind of businesses on a +ve note !!!

[jonald_fyookball]

Delta Financial is a Bitfinex clone. Basically, you provide funds that Delta Financial loans out for margin trading. If the trader goes bust, Delta Financial is supposed to cover it. If Delta Financial goes bust, you lose your coins.

but that could never happen. thats like saying the worlds biggest bitcoin exchange could go bankrupt 

[Ron~Popeil]

I am hesitant to put my funds anywhere but in my own wallet. If this company stays around for a while it might be interesting, but holding your own coin is the only truly safe way to do it at this point.

[Este Nuno]

I can see people are taking the pirateat40 model.

For any newbies, pirateat40 had a ponzi scheme, which first started off him trying to day trade the funds to get the 7% he was offering.

I don't think it's fair to compare 5% per year with the 7% per week Pirateat40 offered at Bitcoin Saving and Trust.

[gweedo]

I can see people are taking the pirateat40 model.

For any newbies, pirateat40 had a ponzi scheme, which first started off him trying to day trade the funds to get the 7% he was offering.

I don't think it's fair to compare 5% per year with the 7% per week Pirateat40 offered at Bitcoin Saving and Trust.

It is the same model, you do realize that.

[haploid23]

Storing bitcoin at some institution even for some 7% return is utter foolishness and risking one's own wealth. Should be avoided at any cost.

I do agree that putting your btc in someone else's hand for a long time is rather foolish, and it's counter intuitive for what btc is suppose to be. This now becomes very similar to our current banking system. But when you make the rate comparison to banks, it's doesn't seem so bad. In the US, you get something around 0.03% interest when left in a savings account, which you're guaranteed to lose money because inflation percentage is higher than the interest banks give. 7% sure as hell beats 0.03% + inflation.

[Este Nuno]

I can see people are taking the pirateat40 model.

For any newbies, pirateat40 had a ponzi scheme, which first started off him trying to day trade the funds to get the 7% he was offering.

I don't think it's fair to compare 5% per year with the 7% per week Pirateat40 offered at Bitcoin Saving and Trust.

It is the same model, you do realize that.

How so? This bank is loaning out leverage to people with the deposited btc is it not? Pirate didn't do anything of the sort.

[franky1]

smells fishy to me

reasons
1. using amazon servers (facepalm)
2. the leaders lack financial trading skills - https://www.btcdelta.com/company
3. a hong kong registered company with offices in vancouver, but servers in seatle
4. cheap security certificates (comodo)...

has everyone forgot mtgox
a asian company that had years of issues trying to get american bank accounts and american licences. lacked financial experience, etc

[jonald_fyookball]

smells fishy to me

reasons
1. using amazon servers (facepalm)
2. the leaders lack financial trading skills - https://www.btcdelta.com/company
3. a hong kong registered company with offices in vancouver, but servers in seatle
4. cheap security certificates (comodo)...

Some of the largest corporations in the world use Amazon Web Services.
AWS is the leader in distributed computing services...why are you face palming?

Also all SSL certs are the exact same shit.

[moriartybitcoin]

ANY company which pays INTEREST on bitcoin deposits is a FRAUD

Pure and simple!

[franky1]

Some of the largest corporations in the world use Amazon Web Services.
AWS is the leader in distributed computing services...why are you face palming?

Also all SSL certs are the exact same shit.

for information display fine,

but for a financial firm that may end up holding millions of other peoples funds.... come on, btcdelta seems a little low end