The emergence of Bitcoin on the global stage has been nothing short of breathtaking.
In a span of just over a decade, Bitcoin has become the world’s sixth-largest currency in circulation, behind the Chinese Yuan (RMB) and the Japanese Yen (JPY).
Bitcoin’s utility of being peer-to-peer (P2P) digital cash without the need for intermediation has made it a popular medium for the transfer of value in a borderless setting, circumventing the legacy financial system.
Not only that, the actual utility that includes quick transfers and cheap transaction fees that occur in a transparent and immutable environment has propelled the adoption of Bitcoin as a viable global currency for many.
Supposedly you already have a bunch of Bitcoins in your exchange account or your digital wallet that was acquired through a fiat-gateway crypto exchange like Fasset, it would be financially smart to let the Bitcoins “grow”, similar to a savings account generating interest.
This would be especially beneficial for Bitcoin investors with a long-term horizon.
In fact, it is much more profitable to earn interest in interest-generating Bitcoin accounts relative to traditional savings accounts in a typical bank.
A traditional savings account can yield 0.1% to 0.5% per annum while earning interest in your Bitcoin can generate an excess of 8% annually!
There are several popular Bitcoin interest accounts in the market that include BlockFi, Bitwala, and Crypto.com.
Users can expect an annual yield of 5% to 8% yearly, with different interest structures such as compounding or simple interest rates.