Xapo Bank CEO Seamus Rocca says long-term Bitcoin holders are now prioritizing two things: borrowing cash against their BTC, and earning yield on their holdings and using that yield to buy more.
This isn’t coming from a trader’s perspective; it’s based on a bank observing changes in its customers’ behavior. In the past, most people who accumulated coins kept them untouched in cold wallets. Now, they’re willing to put some of their holdings up as collateral or earn yield on them, provided they don’t plan to sell those coins in the short term.
The difference is that borrowing against your coins preserves the number of coins you hold, but adds leverage; earning yield can help you accumulate more coins, but requires handing them over to a third party. Both strategies hinge on the belief that you won’t sell for the long term. If that belief is wrong, the cost is greater than simply holding.
$BTC
This isn’t coming from a trader’s perspective; it’s based on a bank observing changes in its customers’ behavior. In the past, most people who accumulated coins kept them untouched in cold wallets. Now, they’re willing to put some of their holdings up as collateral or earn yield on them, provided they don’t plan to sell those coins in the short term.
The difference is that borrowing against your coins preserves the number of coins you hold, but adds leverage; earning yield can help you accumulate more coins, but requires handing them over to a third party. Both strategies hinge on the belief that you won’t sell for the long term. If that belief is wrong, the cost is greater than simply holding.
$BTC