I've been thinking about it for some time now, and I can't get it out of my head.
we will have a kickass financial platform that could to take over the traditional banking system but there won't be any traditional, secure way to earn interest.
I know there will be the bond system, but that's not for everyone and won't be secure for the lender at first.
Isn't there a way to get 1-2% APR for bitusd?
Privatised bitAssets in their proposed form will not explicitly incorporate yield. But the initial bitAsset structure, in my view, is largely designed to create a form of "cash". If the protocol is extended to allow more flexibility in these designs, it is certainly possible to build a number of different asset types that could incorporate yield, such as :
- at-call deposit accounts (possibly with 0% minimum interest)
- bond markets, allowing term lending and borrowing in currency
- ETF-like tokens that would allow users to get exposure to assets with yield or dividends
- credit markets, which incorporate counter-party risk
So yes I think this will all come down the track, but you also need to recognise that even in these circumstances the level of yield is going to be dictated to some extent by yields available in external markets. That's because shorts offering the internal yield will compare and possibly arbitrage against external yields. So just like the external world, I expect it will be more difficult to get high yields internally on low-rate currencies like USD and EUR than on higher yield currencies like AUD or roubles. The reason why bitUSD has been offering a yield in the past is largely because of sharing in system fees, which is not really a sustainable model.