1

I have some Bitcoin. I don't want to part with them, but I need an income. I'm trying to have it so that, somehow, my Bitcoins generate a small sum monthly in fiat, to my bank account.

While going through a list of "Bitcoin loan" sites, it seems that all require me to deposit the coins into their custody. I do not trust a company to hold my coins. I'm worried about exit scams or being locked out. Anything that requires KYC/AML is a no-go for me, as services have closed accounts on me before without explanation.

Is there a way to generate an income from bitcoins without giving up control? Can I earn a monthly fiat just because I own them? Or will any such offering require me to part with my coins? I just can't do that to my satoshis, or to myself.

Murch
  • 71,155
  • 33
  • 180
  • 600
J. Y.
  • 11
  • 1
  • Hi J. Y., I've edited your post to condense it a bit and focus it on your main question. Please check whether I managed to capture the gist and feel free to amend further. – Murch Jan 29 '21 at 00:51

1 Answers1

1

Bitcoins are a non-productive asset. Lending services earn revenue, because they lend out the coins they borrowed from you to someone else. They connect lenders and borrowers, take most of the risk and a cut. There is some risk involved, which is why there is revenue to be earned in the first place. Without you handing the coins into the service's custody as collateral, it's unclear how the service would make any money, so they would not have any reason to pay you. More traditional forms of credit usually require you to provide your identity and a list of your assets as collateral.

Unfortunately, there is no such thing as a free lunch. Nobody is going to give you something without you either providing value or taking a risk.

Murch
  • 71,155
  • 33
  • 180
  • 600
  • Still, fiat-rich people tend to get all kinds of special treatment simply because of their wealth... One would think that it would happen with Bitcoin havers as well. (Or at least *hope*...) – J. Y. Jan 28 '21 at 23:57
  • 2
    Nobody gets special treatment for having their wealth stored in the form of fiat notes under their mattress. That's the equivalent of what you're asking for here: not give up any control, not even tell anyone you have it, but still be paid. The world is full of wealth inequality, but complaining on this site isn't going to change that. – Pieter Wuille Jan 29 '21 at 00:04
  • Not trying to complain. Just seriously trying to understand this world enough for me to survive somehow. – J. Y. Jan 29 '21 at 01:42