1/ Are higher yields in crypto sustainable?
This is something that is often talked about yet most overlook the most basic aspects of the conversation.
1/ Are higher yields in crypto sustainable?
This is something that is often talked about yet most overlook the most basic aspects of the conversation.
To read full article:
https://inleo.io/@taskmaster4450/why-crypto-can-offer-higher-yields-than-tradfi
Some returns over time is expected and reasonably but when you look at 100%+ over a year or two it unrealistic to expect. Not without decent model to be served back, it can't all be on the price of the token alone
2/ The problem is we do not consider what costs are associated with TradFi. Also, the capital efficiency with public networks is much greater than the other. We do not see the same barriers to entry.
3/ Extraction takes a toll on returns. TradFi is full of intermediaries, each of which take a piece of the action along the way.
4/ Then there is the ownership model which brings a new level of interaction as people fill roles that are contracted in TradFi.
This all brings greater efficiency.