Why I Withdrew All Of My Bitcoin From BlockFi…

Crypto yield platforms are collapsing fast. LUNA imploded a few weeks ago, and now the Celsius Network is halting all withdrawals. It’s a 21st Century bank run.

Concerned over the growing number of illiquid platforms, I withdrew my money from BlockFi.

In this article, I’ll explain why.

Also, for anyone with a BlockFi account, BlockFi is liquid right now. They sent me my funds in under 48 hours. So if you have money with them, you‘re safe at the time of writing.

Current Risks Outweigh The Rewards

I’ve been a BlockFi user for over two years. In fact, I recommended the platform back when Bitcoin was still well under $10,000. It’s a great platform and I’ve always enjoyed using it.

However, over the past few months, the risks of keeping crypto on a staking platform have started to outweigh the rewards.

Here’s what I mean.

When I first started using BlockFi, the platform paid Bitcoin holders 6% APY.

That’s a great yield, especially during times when crypto prices are stagnant. However, BlockFi has slowly reduced their payouts down to 3% APY.

This isn’t terrible, but there are lower-risk assets yielding just as much (or more) without nearly as much volatility. Plenty of blue chip stocks pay 3%, and there’s no risk of your money becoming inaccessible or the asset collapsing overnight.

The crypto space is filled with rug pulls and crashes. So, 3% interest plus potential growth is comparable to Coca-Cola or the Vanguard High Dividend Yield ETF — two assets that are unlikely to disappear anytime soon.

What I’m Doing With My Funds Instead

BlockFi successfully transferred my funds yesterday evening. So the money I had with them is now back in my hands.

Since the Bitcoin I’d invested with BlockFi was earmarked for generating income, I cashed out into dollars and used those to buy traditional dividend stocks. Specifically, Procter & Gamble and McCormick & Company — two businesses I was already investing in.

BlockFi has been a great service and I’m glad they’re liquid, but right now a lot of platforms are folding fast and taking investor money with them.

Because of this, I’m temporarily out of DeFi to avoid any permanent losses.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.