The concept of interest is as old as time. Well not quite…
The first written evidence of compound interest dates roughly 2400 BC, where an annual interest rate of 20% helped fuel the development of agriculture and was important for urbanization.
The concept is simple - lending resources for a desired return which ideally leads to an overall increase in production. Early implementations of interest rates are also tied to a concept that acquired seeds and animals could reproduce themselves, which could justify charging interest.
In modern times, we have our most direct relationship with interest in form of the anemic amount that big banks offer us in our savings account…0.05%…
This, along with collapsing US 10yr treasury rates has led investors to seek other forms of “yield” out in the marketplace.
If you’re part of the online crypto community, there is now an incredibly exciting opportunity in the space called staking. It is the concept of “lending” out to certain parties in order to earn a rate of return.
Some of the percentages being earned are absolutely eye-popping. Which usually means that something is too good to be true. So we know this comes with risk…
Last week, we covered the revolution of the DeFi movement. This week we will first talk about the role of income in a portfolio, the broad lack of yield in the current economic environment, and then we will dive into an interesting “product feature” of the crypto space: staking.
This week, in
- Traditional Portfolio Mix