The same Fed rate hike can help stablecoins and hurt Bitcoin borrowers
When you hold a dollar stablecoin, somebody else may be earning interest on the assets backing your balance, while a company borrowing to buy Bitcoin has to find the money to pay its lenders. Both businesses are crypto-native, but a higher interest rate can reward the first and eat into the economics of the second. […] The post The same Fed rate hike can help stablecoins and hurt Bitcoin borrowers appeared first on CryptoSlate.
Key Takeaways
- When you hold a dollar stablecoin, somebody else may be earning interest on the assets backing your balance, while a company borrowing to buy Bitcoin has to find the money to pay its lenders.
- Both businesses are crypto-native, but a higher interest rate can reward the first and eat into the economics of the second.
- […] The post The same Fed rate hike can help stablecoins and hurt Bitcoin borrowers appeared first on CryptoSlate.
Summary generated by IndiCrypto from CryptoSlate. IndiCrypto is a news aggregator and does not provide investment advice. Read the original article for full context.
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