Where Does the Yield Come From?

Summary

The conversation explores the complexities of generating yield from Bitcoin, discussing various sources of yield, the risks associated with crypto lending, and the lessons learned from past failures in the crypto space. Panelists emphasize the importance of self-custody, risk management, and the evolving role of Bitcoin in traditional financial markets. They also highlight the potential for Bitcoin to serve as working capital and the future of institutional adoption in the Bitcoin ecosystem.

Takeaways

Bitcoin is primarily a yield-generating asset by holding it long-term.

Self-custody is crucial for managing Bitcoin safely.

Avoid custodial services to minimize risk.

Re-hypothecation of collateral is a significant risk in lending.

The yield on Bitcoin is often mispriced in the market.

Bitcoin-backed loans are a secure way to earn yield on dollars.

The Lightning Network offers potential yield opportunities.

Risk management is essential in crypto lending.

Institutional adoption of Bitcoin is on the rise.

The future of Bitcoin includes collaborative custody solutions.

Chapters

00:00 Introduction to Bitcoin Yield Generation

01:51 Understanding Yield Sources in Bitcoin

04:27 Lessons from Crypto Lending Failures

07:25 Risk Management in Bitcoin Lending

10:04 Evaluating Yield Opportunities

12:48 The Future of Bitcoin Lending and Yield

15:28 Institutional Adoption and Bitcoin's Role

18:36 Conclusion and Q&A

32:22 bp-introoutro_v2.mp4