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Skeptical take: Is a 7% Bitcoin yield realistic?

Okay. A 9% return over 200 days annualizes to about 16% yield. If I take 16% minus 7% = 9% and then apply a 0.8 factor to account for collateralization, I get 9 * 0.8 = 7.2% annual on the Bitcoin I put in. That seems like an unusually high Bitcoin yield — don’t you think?

If one could reliably earn ~7% per year on their bitcoins, why wouldn’t major exchanges do the same? They could, for example, offer me 3% on my BTC while capturing the remaining spread to net 7% themselves.

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AI Analysis

The math in the opinion is straightforward: annualizing 9% over 200 days gives a higher annual rate, and adjusting for assumed collateralization reduces the effective return to roughly 7.2% on the inv...

AI Recommendation

Don’t accept high-sounding Bitcoin yield claims at face value. First, ask how the yield is generated: is it from secured lending, margin interest, derivatives, market-making, or promotional subsidies?...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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