Bitcoin’s primary appeal has always been its potential for significant capital appreciation. However, unlike Ethereum and Solana, which offer staking rewards to holders, Bitcoin lacks a straightforward method for generating yield. Traditionally, investors have resorted to lending their Bitcoin to earn interest. Yet, this approach carried significant risks, particularly due to rehypothecation, where assets were used as collateral for further lending. This practice led to a credit bubble that ultimately burst in 2022, resulting in widespread insolvencies and a loss of trust in many facets of the market.
Related posts
-
Kaixin plans crypto mining expansion amid Bitcoin’s new all-time high
Chinese electric vehicle manufacturer Kaixin is looking for a strategic shift with plans to acquire a... -
Ripple CEO Predicts US Crypto Boom Amid XRP’s Explosive Growth
Ripple’s CEO predicts a seismic shift in U.S. cryptocurrency,... -
$3 By January? Crypto Analyst Reveals Why The Dogecoin Price Is Primed For A Surge To $20
Este artículo también está disponible en español. Crypto analyst John Burr on TradingView has discussed the...