The Bitcoin and crypto markets move at a lightning pace. If you are out of the loop for just a single week, that is the equivalent of missing multiple months worth of news in other markets. But that is part of the reason why I find the crypto markets so fascinating. Each day is different and anything could happen. If you have been following my posts for any length of time, you will probably know that two of my largest passions are bitcoin and also earning a passive income. Lending out your bitcoin for a passive income used to be a strategy that was extremely easy to pull off and receive great interest rates. As recently as early last year, it was still the norm to receive at least 6% interest up to around 2 bitcoin, and if you looked hard enough you could find even better rates. BlockFi was offering 6% on up to 2.5 Bitcoin, Celsius was offering 6.20%, and Len was offering 6.25%. You could just set your coins and leave them. It was a time that many took for granted.
I'm sure you're well aware that that is no longer the case. Lending out your bitcoin for the best possible rate has become a task that is not so passive anymore. The interest rates have ablated drastically, and therefore the tiers became abundant lower too. This has made many people like myself, who was one of the biggest advocates for lending, reconsider if it is still worth the risk of lending out my "treasured" bitcoin, for rewards that have become less and fewer. The situation is even direr if you are American like I am. Many lending services such as BlockFi, Celsius, Nexo, Len, and more have blocked Americans from depositing any additional funds to earn interest on. Unless they are accredited investors, which most people aren't. This means that Americans can only earn what they already had deposited into their account before these rules took effect.