Andreas Antonopoulos discusses DeFi contract in Q&A livestream session

• Andreas Antonopoulos has said that there are many risks behind the current method of earning steady income with your holdings of bitcoin. 
• But when it comes to decentralised finance, there is more than one way to earn a steady income without giving your money to other people. 

One of the biggest names in the crypto space, Andreas Antonopoulos has said that there are many risks behind the current method of earning steady income with your holdings of bitcoin. But when it comes to decentralised finance (DeFi), there is more than one way to earn a steady income without giving your money to other people. 

In a Q&A livestream session, at the end of last week on the 27th of June, the well-known bitcoin advocate said that DeFi contracts are just one way for owners of BTC to generate passive income without relinquishing custody of their tokens/coins. 

According to him, investors are able to convert their assets and then lend it out on a platform where the token can earn interest. Despite this, he has that by carrying out this method on ETH-based platforms, it can be quite risky when it comes to security. 

He further said:

“Ethereum may have problems. It may have bugs. The consensus algorithm may have failures. You may have increases in the gas price, which leads to other cascade problems. And all of those things can cause you to lose some or all of your invested capital.”

With many crypto-backed loans being used for margin trading, lending and borrowing cryptocurrency is a risky road to go down. This, on top of the high volatility surrounding the industry.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!