BlockFi: Earning with Your Crypto

Published on
November 23rd, 2020
Duration
56 minutes


BlockFi: Earning with Your Crypto

The Interview - Crypto ·
Featuring Zac Prince

Published on: November 23rd, 2020 • Duration: 56 minutes

BlockFi CEO Zac Prince joins Real Vision CEO Raoul Pal to discuss the crypto space and the progress of BlockFi from concept to working product. Prince explains how his traditional finance experience had helped BlockFi identify a demand that had not been met by existing infrastructure in the crypto market. He explains how crypto lending works, where the interest comes from, and the various risks involved. Prince explains BlockFi's new crypto credit card, their goals for the next 5 years, and its recent global institutional expansion. Filmed on November 17, 2020. Key Learnings: Understanding how to earn interest with your crypto assets enables investors to make their holdings productive. This video explains how to earn interest, the risks involved, and how BlockFi has worked with regulators to meet the needs of an evolving regulatory environment. For a $250 bonus payout in bitcoin, please visit https://blockfi.com/Raoul.

Comments

Transcript

  • DS
    David S.
    3 January 2021 @ 01:32
    This was an informative and valuable interview. I'm a client of BlockFi, and as such, was very interested to hear Zac respond to Raoul's questions. Thank you for this. FWIW, I'm in complete agreement about the custody issues as discussed. Even though I applaud and understand the argument for self-custody, I, like Raoul and Zac, do not want to deal with the stress and uncertainty of custodying crypto. Misplacement, theft, fire, etc, are all concerns that rightly will drive the evolution of more safe 3rd party custody options. I was glad to hear I'm not alone in my concerns.
  • KS
    Kevin S.
    14 December 2020 @ 01:52
    This is the second interview I've listed to with Zac Prince (I caught Zac on the Animal Spirits podcast as well), and think they have a great product. I'm a customer (bummed I joined before the referral link for RV customers was setup) but I also am thinking of joining them. I have a senior level position with a Fortune 500 company and pinged Zac along with a recruiter on LinkedIn because I think BlockFi has the right approach for the crypto space, and really am impressed with Zac as a leader. Great interview!
  • JY
    James Y.
    23 November 2020 @ 19:51
    Great interview all around. There certainly is an argument for self custody, but there is also an appealing argument for financial services to crypto assets that requires third party risk. I personally use BlockFi for a portion of my assets and have been extremely happy with their products. Really excited for the potential credit card to roll out, also. BTC rewards, sign me up! Maybe next RealVision subscription I can earn some Bitcoin on the backend.
    • JB
      Julian B.
      12 December 2020 @ 22:31
      $200 annual fee on credit card btw.
  • BT
    Brian T.
    2 December 2020 @ 13:13
    Zac, Awesome credit card idea. BTW, how can I reach you for a quick chat?
    • JB
      Julian B.
      12 December 2020 @ 22:31
      $200 annual fee on credit card btw.
  • JB
    John B.
    23 November 2020 @ 21:42
    Raoul, would you be willing to say what percentage of your BTC you would put on BlockFi? I believe this is the future but very worried about moving out of cold storage.
    • TT
      Tokyo T.
      23 November 2020 @ 22:36
      Why give up custody of your hard earned BTC to get a few % interest? Greed or carelessness won't end well.
    • AK
      Ado K.
      24 November 2020 @ 09:01
      You will get 6 %, but it will be in an asset that can not appreciate in price. Few understand this.
    • DC
      David C.
      24 November 2020 @ 20:05
      Interest is paid in BTC so it seems it's you that doesn't understand!
    • DC
      David C.
      24 November 2020 @ 20:13
      I'm sorry, I misunderstood your point, I thought you were referring to interest paid in their own token such as on other lending platforms. My bad!!
    • PK
      Prafulla K.
      25 November 2020 @ 16:11
      @Ado K, can you please elaborate on your point? "You will get 6 %, but it will be in an asset that can not appreciate in price. Few understand this." Thank You
    • JB
      Julian B.
      12 December 2020 @ 22:27
      @Prafulla K. I think Ado is referring to the fact you earn 6% because crypto-lenders lend out your bitcoin. In addition to recipients like market makers, there are short sellers who borrow your bitcoin to sell and lower the price. Overall though, by allowing your bitcoin to be lent out in any which way, you are increasing the short-term circulating supply. If you keep it in cold-storage and don't touch it, then the price will move quicker when more buy-pressure comes in because your bitcoin isn't available.
  • MR
    Michael R.
    1 December 2020 @ 00:03
    I would love to get their credit card - full balance paid every month. Not so keen yet on staking my BTC for interest.
    • JB
      Julian B.
      12 December 2020 @ 22:16
      $200 annual fee on credit card btw.
  • SL
    Steven L.
    1 December 2020 @ 05:25
    Definitely in for the credit card. But the fresh insight I took away from this was in finally understanding how traders are able to short Bitcoin in the markets. Until now I had sincerely thought BTC was “short-proof”. Sigh.
    • JB
      Julian B.
      12 December 2020 @ 22:16
      $200 annual fee on credit card btw.
  • RW
    Rien W.
    2 December 2020 @ 23:19
    Ehmm.. I definitely did NOT mean to spam the comments with the same message. It didn't post or load the page so I clicked a few times and now got this mess... Can't delete my own comments either :/ Sorry about that!
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • RW
    Rien W.
    2 December 2020 @ 23:17
    Celsius Network is king though ^^
  • jW
    john W.
    2 December 2020 @ 03:12
    Looking at their site it seems there are US residency restrictions for opening an account and even more for US expats residing outside US.
  • TP
    Timothy P.
    27 November 2020 @ 16:51
    I see no benefit to giving someone else custody of my BTC for a paltry return. I might as well hold it myself and enjoy the double-digit (or more) upside. Why even bother with counterparty risk? I mean, if you're such a trading degenerate that you throw all caution to the wind and go full-ham into a "yield" situation, why not just go in on a 100x futures bet? It makes about the same sense. But there I go again, being the rational investor that has weathered every wiggle in Bitcoin since 2011. You better believe my yield is way better than this pale offering. Don't look at short-term garbage, just hold the underlying.
    • TP
      Timothy P.
      27 November 2020 @ 18:18
      An additional observation -- Having the CEO essentially read out his presentation deck to Venture Capital isn't really what I come to RV for. I come to RV to get in-depth analysis and interviewers who are willing to dive into claims of "derisking" a yield product offering. There is no free lunch, and the CEO's claim of near-zero risk rings all kinds of alarm bells to me. If you can't delineate your strategy to me outside of generalized references, then I suspect your secret sauce isn't so secret after all.
    • Bp
      Billy p.
      1 December 2020 @ 16:03
      lol Mr Rational, 8% is not "paltry" and you still get the upside of the rise in BTC price. You lose nothing and gain 8%
  • JP
    Jeff P.
    30 November 2020 @ 13:01
    I learned a lot from this interview. Yes, it was an opportunity for BlockFi to “promote” themselves; which naturally is a primary reason most companies do any interviews and webinars. That’s OK with me when they are providing useful information and not shilling.
  • VA
    Vladimir A.
    30 November 2020 @ 07:55
    Please interview Celsius CEO Alex Mashinsky to get his perspective on how Celsius is different from BlockFi. I'm surprised Raoul didn't ask Zac about Celsius from a competitive standpoint.
  • CM
    Colin M.
    29 November 2020 @ 21:38
    Nice to watch interview, thanks! For me personally it's simply to early, to risky, but the DeFi conecpt itself is brilliant and I like to see that so much is going on. 5 Years from now we have a better picture about sucsess, failure, risk. The demand is high, no doubt. In Germany we have interests below 0.5% p.a, Than naturally you ask yourself, could lending stablecoins is a good alternative. So, I'm looking forward to watch DeFi and I hope it's here to stay and builds up more trust over time.
  • DM
    David M.
    29 November 2020 @ 12:24
    The issue seems to boil down to a/ do we want quick adoption -> damn the torpedoes. Full steam the marketing departments, the former banksters with pull, the dazzling baubles of snazzy UI's and apps, interest income and easy custody solutions (hello re-hypothecation). ... or b/ the slow purist hard-as-nails approach of cypherpunks and their offspring. ??? Must say it was way more fun (and a less treacherous space) when the devious banksters and breathless CNBC puppets ridiculed our little "ponzi scheme"
  • SP
    Stephane P.
    25 November 2020 @ 19:40
    I have 2 accounts with them with ++++ 100K i this moment i cant log in the web or IOS platform....can say i feel secure now !!! Anybody having similar problems ?
    • PD
      PP D.
      25 November 2020 @ 21:04
      AWS is down https://twitter.com/BlockFiZac/status/1331642521722740737?s=20
    • DE
      Dan E.
      28 November 2020 @ 19:02
      I did but used Chrome and got right in
  • WC
    William C.
    27 November 2020 @ 00:02
    Like Blockfi but Celsius is a superior product in my mind. I use both but happier with the transparency at Celsius
  • MD
    Matthew D.
    26 November 2020 @ 13:28
    Apologies if I have missed it in amongst everything else. Having just watched the video explaining/promoting BlockFi, I'm guessing that BlockFi did this in the hope of encouraging some of us to create new accounts with them. If this is the case, why's there no RV BlockFi affiliate link that we can use?
    • MD
      Matthew D.
      26 November 2020 @ 13:29
      Apologies, It's subtle, but I have now noticed that there actually is a link for us to use. Sorry. https://blockfi.com/Raoul
  • RB
    Reid B.
    25 November 2020 @ 17:46
    Celsius is a much more secure place to keep your crypto and way higher returns. Best place for loans as well, only 1%. Founder Alex Mashingsky. Changing the world of finance.
    • MS
      Michael S.
      25 November 2020 @ 19:09
      I'll check it out. They just erased my comment when I just posted that made the mistake of using the BlockFi site is which down and locked me out. Not Cool!!
    • MS
      Michael S.
      25 November 2020 @ 19:32
      Just listened to that interview. You are right!!!
    • SP
      Stephane P.
      25 November 2020 @ 19:44
      https://www.coindesk.com/what-crypto-lender-celsius-isnt-telling-its-depositors
    • MS
      Michael S.
      25 November 2020 @ 19:51
      Just moving everything back to my wallet.
  • MS
    Michael S.
    25 November 2020 @ 04:04
    Excellent interview lot to think on.
    • MS
      Michael S.
      25 November 2020 @ 19:11
      Still an excellent interview just don't trust anyone with your crypto.
  • RC
    RUBEN C.
    25 November 2020 @ 17:40
    Good Interview but I would not trust this person. Call it intuition.
    • RB
      Reid B.
      25 November 2020 @ 18:36
      Agreed, Robert Kiyosaki made this guy look like an idiot when he had him on. Granted he was asking simple dumb questions, but I wouldn't give my crytpo to Zac Prince or BlockFi.
    • MS
      Michael S.
      25 November 2020 @ 19:10
      They will probably erase your comment
  • AD
    Andre D.
    24 November 2020 @ 13:31
    BlockFi rocks! I have been with them for almost 2 years now. Been stacking sats like crazy...
    • RB
      Reid B.
      25 November 2020 @ 18:38
      Celsius is better.
  • AP
    Andy P.
    24 November 2020 @ 23:13
    Really enjoyed this interview, been with BlockFi for a couple of months, this reassured me I made the right decision to get 6% on my BTC with them.
  • PS
    Paul S.
    23 November 2020 @ 13:01
    Many crypto users breakdown ownership into a simple black or white mantra. Not your keys, not your coins. Even though they still hold money in banks, and still have fund managers hold their assets. I've used blockfi for the last year and been extremely happy with the service, I'm sure there are other places which will give you more yield for your crypto - but with the backing of people like Nic Carter, Pomp, Raoul and others it's what made me take the plunge in the first place. Over time the interest yield will probably diminish but its a great place to hold your btc while thinking about how you want to store it long term
    • HJ
      Hendrik J.
      23 November 2020 @ 14:15
      Agreed. It's also a matter of sizing. I'd never recommend putting all your eggs in one basket, but not having some exposuring (risk/reward) seems foolish
    • bw
      brent w.
      24 November 2020 @ 22:46
      I think the mantra should apply. Unlike in the traditional financial world, it this world it is very clear whether you hold Bitcoin, or you hold a legal contract. When you "deposit Bitcoin" you are actually buying a financial contract with your Bitcoin. Zac is always clear with this, and should be applauded for his clarity. The mantra is good for noobs. Makes clear the risk they are taking.
  • AS
    Anthony S.
    24 November 2020 @ 02:15
    Excellent interview. Please take him up on his offer with a deeper dive on the risk management. Would love to hear more on the topic. Still can't understand how there is such a demand to pay 8.6% on USDC and GUSD.
    • bw
      brent w.
      24 November 2020 @ 22:41
      I would like an explanation for this as well.
  • PF
    Peter F.
    24 November 2020 @ 20:58
    Brilliant
  • TT
    Theo T.
    24 November 2020 @ 20:33
    After listening. I got exactly what I wanted out of this. Thank you.
  • TT
    Theo T.
    24 November 2020 @ 20:18
    I would LOVE to hear a risk assessment by you with Zac.
  • HV
    Hector V.
    24 November 2020 @ 13:09
    Fantastic. Follow up interviews with his team please. This is why I find BTC valuable...future yield in a "lower" risk environment.
  • GF
    George F.
    24 November 2020 @ 01:42
    Great interview. Very informative and I really appreciate you giving Zac a chance to get into the weeds. I'm already a Blockfi user and feel even better about the service being provided.
    • AK
      Ado K.
      24 November 2020 @ 09:04
      thank you for actively suppressing the price of Bitcoin. Since I am a hodler, you are directly leeching on me like a parasite. Keep stacking those 6 %, I mean what could possibly go wrong?
  • SW
    Steve W.
    23 November 2020 @ 21:32
    Tried it, nothing wrong with service and professionalism. Couldn't sleep at night though knowing my bitcoin was flying around exchanges and being used in trading. To me the main strength of bitcoin is financial sovereignty - if everyone was to give up their custody for 6% we would probably strangle the price of the entire asset by more than this. Everyone to their own though.
    • AK
      Ado K.
      24 November 2020 @ 08:59
      Thank you for this insightful comment Stpehen. When you lend out BTC you actively suppress the price of it. This is why I would rather kiss the feet of an etherian before acknowledging someone who has a blockfi account as a Bitcoiner.
  • AH
    Aarona H.
    23 November 2020 @ 20:29
    BlockFi -- Where does the money go?????? ? let me explain.. if the market cap of GUSD is 12 million,.. and you say when someone wires in money, you buy GUSD... then why is it when someone wires in a a few million the market cap of GUSD does not move!!!! and you cannot find the BlockFi buy on etherscan??? BlockFI! what are you doing with customers cash? No one can tell me this!!!
    • AK
      Ado K.
      24 November 2020 @ 08:56
      Lending them out at above 6 %. Who the f would want to loan Bitcoin at above 6 % you might wonder? Derivatives platforms that use them to dump price and acquire Bitcoin through liquidations. It is quite simple, I loan 3 000 BTC, sell them, dump price and gain 5 000 BTC through liquidations and stop loses. To pay the above 6 % interest rate is quite simple then. This is why the Bitcoin lending space is the dirtiest market of them all.
  • MD
    Matt D.
    24 November 2020 @ 07:39
    Great interview Raoul, great guest! Thanks. This is excellent.
  • RN
    Richard N.
    24 November 2020 @ 03:21
    Just started using the service today. Looking forward to it. Love that it is CFTC governed and audited by third party vendors. That gave me the confidence to loan my crypto.
  • KM
    Kelly M.
    24 November 2020 @ 01:02
    These are the type of interviews I want to see. People running real companies in the crypto space. Not podcasters conducting interviews with philosophers.
  • rk
    robert k.
    24 November 2020 @ 00:45
    Excellent interview. Plain English explanations and thanks Raoul for drawing the connection to traditional finance prime brokerage.
  • CD
    Chris D.
    23 November 2020 @ 21:25
    Many thanks for this interview which is the second most interesting I have heard in a year of RV (Olaf Carlson-Wee was the best). Please continue to go deeper on the risk management topic with BlockFi people (like he offered) and their competitors. For example, I understand that at least some of these loans are over-collateralized. But what happens when the market does some huge, rapid swing. At what time derivate of asset valuation does the BlockFi model break?
    • CD
      Chris D.
      23 November 2020 @ 21:26
      ugh, I can't spell. I meant "time derivative"
  • CW
    Chris W.
    23 November 2020 @ 12:03
    Why does BlockFi have 2 tiers for BTC, and only BTC, and why the step at 2.5 BTC?
    • AH
      Aarona H.
      23 November 2020 @ 20:36
      they change it all the time. the first tier used to be on your first 10 bitcoin. they change this every couple months.
  • PT
    Peter T.
    23 November 2020 @ 19:44
    Still not sure how they handle a market that gaps up 10x to 20x in a week. Show us the risk models ?
  • AK
    Ado K.
    23 November 2020 @ 18:12
    Zac Prince 38 minutes in "I would sleep much better at night knowing my assets are custodied by someone else then by me" I would alike this quote to "I would feel much better if my wife was safe in someone else bed then in mine" In life, if you are truly lucky, you can trust your family, wife and perhaps 2-3 really really good friends. The idea that you can trust a complete stranger is perhaps the biggest error we all make in investment. In this market the obituaries are riddled with not your keys not your coins stories. You feel like joining the zombies, be my f ing guest. Lend you Bitcoin out and see what happens, try to play the compound interest game and see where it leads you. The one way express to Rekkt City is always open baby, is 6 % enough to make you jump on it?
  • IW
    Ian W.
    23 November 2020 @ 15:32
    Two thumbs up. This has been the most valuable crypto video you've done. Big up to Raoul for asking literally all of the questions nagging me about the risk management side of BlockFi. Thanks Zac for confirming that your BTC lending is to institutions and disclosing a bit more of your process. I would still appreciate a bit more transparency on the lending particulars, but this has made me comfortable enough to hold 25% of my BTC with BlockFi. Also loved the insight into interest rate drivers. While far from a put option in terms of effectiveness, the higher interest when sentiment is bearish provides an interesting sort of dynamic downside parachute for the long term hodlers. Seriously, I can't give enough kudos. Thanks Raoul and Zac for this interview.
  • TS
    Thomas S.
    23 November 2020 @ 12:08
    excellent ... loved his passion and "down-to-earth" interpretations about the space. There is room for everyone.