I have seen a lot of backlash over those announcements from yesterday. Thankfully I don't have a lot on blockfi so will probably leave what I have on there for the time being but it's made me wonder about whether I should take some of my funds off there too.
I know @chekohler uses Blockfi too, what do you think of the latest changes?
I am not too concerned, it's why I hedged by using all 3 platforms, they are going to compete with one another for capital. to me chasing yields doesn't make sense. I've already secured a position and if people move their capital to lets say CEL, all they do is give themselves extra work because all that capital arbitrages yields down and then they jump to the next platform.
Having a stake in each means your variable interest rate evens out to a market return.
Additionally, these CE-FI platforms will roll out other products to use your capital to generate yield and the funds they are giving your capital to have variable performance returns, which is where our interest payment comes from so you can't assume oh 6% on one is sustainable when the platform is eating into margins to satisfy holders.
A higher interest rate can also mean you're capital is placed in higher risk trades so I'm happy to stay put, im all about the drips. And if it cuts 2% I can just add to my portfolio somewhere else to cover that loss which isn;t that much for a year
Good points, you can't beat the sats drips, that's for sure and for small fry like us, we still have the 6% rate on BlockFi anyway. I probably wouldn't bother keeping more than 1 BTC with the new rates though for a 0.5% yield there though, lock that up in to cold storage!