Coinbase, Dai and Negative interest rates. Get ready for the great corporate swindle.

Before I begin, its probably worth mentioning what a negative interest rate is. There's a lot that goes into it so I'm going to dumb it down alot to the bear bones.

Typically interest rates are positive, if you have cash in the bank you're paid an interest rate as traditionally banks use your cash to loan out to others. They profit off your earnings and give you a small cut. For most of us, this is small. At current interest rates your lucky to see a few dollars appear in your account. But for the rich, these profits are huge. Australian banks throughout the recession constantly made global headlines as they exceeded profit margins driving share prices up.

Negative interest rates are the opposite, they occur mainly in global financial crisis, if you're in Europe you've probably already experienced it. Australia will most likely this year.

A negative interest rate is when YOU pay the % to the bank for holding your cash which in turn goes to the government.

For billions of us this will be unavoidable. But for rich elites they have already found a way out.

There are a significant amount of stable coins on the market which now allow rich elites to sell off their cash and reserve it into a stable coin avoiding negative interest rates.

The leader is DAI and it's not even the best one, but here's why.

Dai is currently tethered to the USD and it will remain inline with the US dollar. Depending where you have it greatly impacts the APY% you're awarded.

But not everywhere is safe or a great location for investment. So where is?

Enter Coinbase, the world's largest trading site. Alot of fees to purchase but its widely accepted and integrated platform has created a large market. It has DAI as 2.00% APY. Not the best but it is the safest and a rich elite rort is about to occur.

See coinbase is about to go mainstream and publicly list on the stock market. By doing so it needs to have insurance and meet federal legislation. This provides safety and security to investors.

Say a person has a tonne of cash and they need to offload it or be charged negative interest rates. They spend half their cash on coinbase shares. Nice and cheap.

Then once shares are confirmed they spend the other half of their cash in DAI at an annual increase of 2% APY. Now we know there are whales in Crypto, but in 3D world these will be superannuation funds, mainstream bankers, governments. You're talking Trillions of dollars. They've now just inflated the Coinbase shares increasing their profits and are earning a 2% APY instead of a negative interest rate on cash.

Their cash is secure and can not lose value due to stable coin. Each day they make millions more in Dai which they can alternate in purchasing more shares or more dai because Coinbase shares would have exploded and FOMO has drawn in smaller fish like mum and dad investors instant selling of shares and reinvested straight back into Dai.

Who even knows, they may put pressure on coinbase to increase the APY seeing they will be the major share holders.

Any other investment of this type would land you in jail and be seen as Corprate crime. But not in the current cryptoshphere.

Hold on tight and if you got cash, get ready for the Coinbase listing. It will he the biggest moon

Posted Using LeoFinance ^Beta