/biz/ - Business & Finance

this use case buffs lightning network LNRR (lightning network reference rate)
you can use bitcoin in different contracts to generate risk free returns either from providing liquidity to push and pull bitcoin across the network (this is the first use case)
now you can use your bitcoin in a risk free way to generate sats from margin loans
this DLOC will open up a way to have a decentralized blockfi service

this is a major financial breakthrough that will be seen in the next few years
keep an eye out for discrete log contracts :)

>>15667341
read this
https://medium.com/@timevalueofbtc/the-time-value-of-bitcoin-and-lnrr-e0c435931bd8
Lightning is still new and figuring out proper optimizations of liquidity and fees, but eventually there will be a reference rate that's created

I remember when you could lend BTC on exchanges to margin traders
I even had a bot that would analyze market depth and make loans at the optimal percentage for 2 day periods
Volatility would increase returns
Then the US government made that illegal and all exchanges had to remove this service to US customers

Now companies like blockfi are offering something similar but aren't transparent enough for me to trust.
I studied their terms and conditions, snooped on their employees in linked, and just played with their site and registration process
I don't really trust them as much as I would trust an exchange

In the the future there's talk of lightning network reference rate and decentralized exchanges offering interest but those aren't developed or steady
Nothing is really a smart method of earning based on the risk reward

My goal is to be able to earn interest to live off of, and keep it all within the crypto markets
Does anyone else research this stuff or any non Americans still lend on exchanges?
I saw poloniex fucked up with "clam" margin trading and cut thier lenders like 17%
Margin on bullshit coins is amateur hour

I'd like to see a real market for earning interest on a real exchange and I'd gladly pay fees to whoever can provide this

>>14692478
it's amazing that bitcoin is turning into a safe investment
when we mature and develop it'll eventually be a fully functioning economy on top of the network
feels pretty good finding this investment and sticking with it

>>14055100
>Bitcoin’s antifragile protocol and its exponentially increasing network effects make it a behemoth, gradually swallowing up global economic activity. The latest of these network effects is a second layer protocol called Lightning Network, which uses bitcoin’s base layer protocol as its security. The concept of layered money is not new in monetary history. In this writing, I’ll be using gold as an analogy to describe why bitcoin will evolve in layers on its way to world reserve currency status.

lighting is going to provide game changing solutions and data that allow bitcoin to become a world reserve currency
read this:https://medium.com/@timevalueofbtc/the-time-value-of-bitcoin-and-lnrr-e0c435931bd8