Why

Lending money to anonymous crypto wallets, using crypto as collateral.

What could go wrong

>crypto crashes
>aaaaand its gone

coinmarketcap.com/currencies/dai/
This is a decentralized stablecoin, secured by eth as collateral. Looks volatile but look at the scale - the worst movement is about 5%.
Eth had its ath at $1400 in Jan 2018 and an annual low of $82 in December. DAI survived all that.
It's much more robust than you think.

Why? It depends on liquidity, which is more than enough. You need more collateral than loan value. When the collateral falls below safety level, it's liquidated. As long as there's enough liquidity to process the liquidations in time everything works out.

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>Looks volatile but look at the scale - the worst movement is about 5%.
ok, ignoring the very beginning, but the market cap was microscopic then and market very illiquid

>secured by eth as collateral.
>Eth had its ath at $1400 in Jan 2018 and an annual low of $82 in December.
Let me get this straight, you use your crypto to lend other people crypto, so they can pay you back crypto when they have crypto that goes up in price

Seems legit

I'll stick to investing in businesses that earn money by selling goods and products

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dai is an algorithmic stablecoin that's supposed to be worth $1. Usdc is a stablecoin issued by coinbase that's directly redeemable to dollars.
It works exactly as any collateralized loan
>I'll stick to investing in businesses that earn money by selling goods and products
It's a product. People are using it to margin long and short cryptocurrencies. You can borrow dai/usdc using eth as collateral, then buy eth with borrowed dai/usdc. Result: decentralized margin long
The opposite: borrow eth (or other token) using dai/usdc as collateral. Sell borrowed eth for dai/usdc. Result: decentralized short
As long as speculators exist, this is going to be in demand.

Fast forward 5 years. Many stocks and real estate are now tokenized. You can get a mortgage without a bank, getting better rates because of a larger pool of money. Or you can lend money to these people, getting much better rates than current cd rates. Both sides gain at the expense of banks, which are out of the picture.

>directly redeemable to dollars.
Once you say that, it's no longer de centralized. Its issued.

What you described is a self perpetuating pyramid scheme, a snake feeding on itself.

>Pulling more suckers in
Nobody fucking wants you here, fuck off you worthless, faggot.

>Once you say that, it's no longer de centralized. Its issued.
The lending mechanism is decentralized, the tokens are a separate entity manipulated by smart contracts.
>What you described is a self perpetuating pyramid scheme, a snake feeding on itself.
It's not. Right now it's a clear transfer of wealth from speculators to lenders. Exchanges are making billions annually on them.
Once assets are tokenized, it's going to replace the banking system.

Angry that I'm making sense huh.

Keep shilling you shit coins to new suckers

Cmon you don't the name of what you described??

Say it..

If you know of it, you know it doesn't end.. it FEEDS FOREVER..

Try moon3d and get good profit

The snake dies

You make some sense..

The point is that it's here to stay.. it will feed on itself FOREVER.. PERIOD..

Most do.. not this one.. this is why crypto is where it is today.. smart money got it a long time ago.. eventually it will be just like your stocks.. but now is not that time..

You lend to himAnd he lends to another user, then 4 more idiots buy more crypto. Price goes up and 2 more idiots lend to 4 more.

Eventually, people STOP wagecucking to buy crypto lol

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>a few million in stocks
nice bait.