The U.S. 10 year note is currently yielding under 1%. That means if you tie up your money for 10 years with the U.S. Government, you will yield less than 1% a year on your money....and it is going lower. I would not be surprised if we see a negative yield environment similar to Japan and parts of Europe soon. This will literally translate in you having to pay to keep your money parked. Unheard of.
So, people have traditionally moved their money into equities (stocks) and dividend yielding investments to obtain higher yields on their money. Money managers are under incredible stress to find yields for their clients. Most annuities and life insurance policies base the yields they pay off of the 10 year Government Bond as that is what they traditionally have invested in. Now, they cannot pay anything. We will see some ramifications of this in the days ahead. Retirement income is going to be hard to find and retirees will accelerate their use of principal in order to maintain their lifestyle or take some incredible risks to maintain yields.
What does this mean for Crypto? Staking and other avenues are allowing people to get a return on their money that exceeds the bond market and most dividend stocks. Crypto such as XTZ can find yields at 5% or even higher depending on the pool that you are in. There are some things to consider when doing this. It is not insured nor do you know the strength or validity of some cryptos. However, you can find some decent yields from this decentralized avenue. Make sure you do your due diligence before dumping a large portion of your money into one thing. Spread out your risk among several different types of crypto and see what happens.
Coinbase is one place where you can stake XTZ and KUCOIN is what I personally use to stake various coins/tokens. KCS token is one that will pay a daily yield on your position and I have received nice returns on my investment along with a stable price. Good luck and comment below if you have any further ideas or ways to obtain good yields.
