https://www.youtube.com/watch?v=h8Zy9PKg93g
This video could also be titled "Meet Kevin Discovers Gemini is a Private Company and Freaks Out About It." OMG — gUSD is a loan to Gemini? Do you mean that 7% interest rate comes with actual risk? And wait a minute...these cryptocurrencies are fucking SOVEREIGN?@?! Not backed by the Fed or the full faith and credit of the US government? Gasps and horror!
Hey, Kev, so glad you're catching up on crypto, but you might want to do some research into defi before you just freak out and make a video on stuff we already figured out in 2017.
What's really funny is that the Youtube sidebar videos recommended to me a Meet Kevin video titled "The Fed and Central Banks are LOSING Control." Hilarious.
But anyway, Meet Kevin describes a run on the Gemini bank, saying that if there was a huge crash, some people might lose money because Gemini wouldn't have enough gUSD to pay back the USD that crypto asset is supposed to represent.
News flash, Kevin. You can't stop everyone from losing money if there's a bank run or its crypto equivalent. What you can do is balance the reward you get with the risk you take. Here's how.
When you deposit your money with a fucking noob platform like Gemini or Blockfi, you get a fixed rate of like 8%. That sounds great to noobs who are coming in from banks at a 0.01% interest rate, but crypto chads know that 8% per year is total crap. You can get 8% a week if you know what you're doing. You get these yields in variable rate defi platforms like Venus or Cream.Finance. Yes, there's risk, but here, the rewards match the risk.
If you've been on defi platforms like these, you'll notice that sometimes you get three-digit deposit APYs. That's because the liquidity of that particular asset is down for the time being. People have borrowed too much of it, and if you tried to pull out your asset, you'd get a control that said you couldn't. This is the same phenomenon that Kevin describes in his video, and it's a risk everywhere — in your street bank, in your Gemini account and in your defi protocol.
But if you go with a defi protocol like the two I mentioned above, you are getting 200% APY for the time that your asset is locked in. With Gemini, you just get the 7%. This is actually a strategy I'm employing, which brings a natural balance to the market. When I see those huge APYs, I change some of my crypto value into that asset and deposit it into the protocol to capture the APY. Others have the same idea. So there are now more assets in the protocol, and life goes on.
So do a bit more research, Kev. Crypto doesn't completely solve all of the problems we have with money. What it does is give the people the power to solve some of these problems without relying on people YOU say are "losing control."
And we have a lot more intellectual capital over here. If I was a betting man, I'd bet that defi solves the bank run problem before tradfi does.
In defi, we also control the liquidity. Not in Gemini, so you may have a point with those cedefi platforms that are just middlemen. But of course you don't know the difference between cedefi and real defi — you're just not there yet with your crypto knowledge. But in defi, we can see every element of what would cause a crash or any other type of problem and act accordingly. That's the difference. Over here, we actually have transparency and a chance to react. Doesn't mean that everything is roses and candy. But we have some candy.
So I'd appreciate if you wouldn't freak out all the noobs and help to cause this Gemini bank run you're so fucking scared of. We're doing just fine. I haven't even gone into the defi insurance plans and the other innovative solutions we have over here to protect against the scenario you laid out. But whatever.
Congratulations if you're reading this blog instead of believing the noob Meet Kevin just because he has 100 trillion subscribers. You're ahead of the curve. This is the place to be. Forward and upward!
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YOUR GUIDE TO MAKING MONEY IN CRYPTO STARTS HERE ---> Making Money in Crypto Part 1
Gems I'm investing in:
NFTs - Doki Doki
Gaming - Abyss
100X Gem - YieldGoat
