2020 has been a big year for bitcoin in many ways. It made people finally realize just how strong the asset can be considering it survived the drops it incurred thanks to the COVID spread. People began to view it as a “safe haven” asset that could potentially be utilized to keep one’s wealth stable during inflation and times of economic strife. 2020 also introduced us to the concept of yield farming, which is a new bitcoin-based “pastime” that is really taking the world by storm with its possibilities.
Yield Farming Gets Bigger Every Day
Yield farming is the process of producing fixed income returns on crypto. People who engage in yield farming can gain access to strong interest rates that they would otherwise never find. Typically, one must put away vast amounts of Ethereum, bitcoin or dollar-based stable currencies into blockchain lending entities. When they do this, they are given additional token rewards in return for their services and the coins they produce. Yield farming is the latest practice being brought forward by the decentralized finance (DeFi) space, and people are using it to make some fast money.
The process was first introduced to traders and crypto enthusiasts everywhere last June, and it has really caught on. Thus far, billions have been accumulated by platforms that offer yield farming services to clients, but there are several people taking part in the practice that are beginning to take notice of risk factors. The biggest one is the fact that fourth quarters can always be a little shaky or unpredictable, and now that we’ve entered the last three months of the year, some are beginning to wonder if things will take a nasty turn before we’re ready to say hello to 2021.
Nevertheless, it looks like many individuals are sticking to it and unwilling to turn away from the prospects of adding a lot more crypto to their digital stashes. Among today’s biggest yield farmers include musicians, fund managers and others that you wouldn’t expect to see involved in the space.
A Nice Little “Side Job” for Many
For example, Andre Allen Anjos is a recording artist that has roughly two million listeners on Spotify. While he ultimately considers himself a musician first and above all, he’s been active in the yield farming space for a while, and he’s grateful that the music industry’s lack of set hours gives him the time to pursue this second passion. In a recent interview, he states:
I’m obviously a musician. That’s what I do full time. Because of my job, my day-to-day [schedule] is loose. I can kind of do whatever I want.
He also said that he’s been getting more and more into a decentralized exchange known as Curve, which allows him to garner access to heavy trading fees in return for whatever digital tokens he offers them.