Andreas Antonopoulos told about another way to generate passive income to BTC

Bestselling author of «Mastering Bitcoin» Andreas Antonopoulos suggested to consider the use of DeFi-contracts as one of the few ways to generate passive income on BTC «without transferring coins to third parties».

In the new series of the author’s podcast, the expert stated that decentralized financial contracts may allow holders of bitcoins to generate passive income without giving up their storage.

According to Antonopoulos, investors can convert owned BTC in Ethereum or stabilini such as Dai (DAI), and then to borrow them on the landing platform for interest rate.

At the same time, he warned about the risks of such operations from the point of view of security of smart contracts and protocols themselves platforms:

«On Ethereum can be bugs, a crash may occur in the algorithm of consensus. It is possible to increase the price of gas, which can give rise to other issues. And all of this can result in a complete or partial loss of the invested capital».

Antonopoulos mentioned other ways to get coins to work for their owners, but almost all of them one way or another rely on custody exchange. According to the expert, these methods of investments carry the risk of theft or abuse.

In the context of passive income Antonopoulos noted that Hodler waiting for a new rally, however, prices of the crypto market can «move both up and down.» In his opinion the latter is especially characteristic for altcoins, which at one time can overwhelm 98%.

Just another reminder about the risks DeFi-sphere may be the hacking of the smart project contract Labs Balancer, in which an unknown hacker stole $500,000 in altonah.



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