Crypto works harder than cash ever could – here’s how it can boost your passive income

Today’s Letter is brought to you by The Bitcoin Dolce Visa ! You can now access Italy’s Investor Visa with a €250K equity investment into Bitizenship Italia, a Milan-based Bitcoin startup. Visa approval arrives first, investment happens only after authorization. The company operates with a Bitcoin-aligned treasury, non-custodial L2 staking, and clear redemption windows every 24 months. To date, Bitizenship has facilitated €25M+ in Bitcoin-aligned residency investments. A compliant, Bitcoin-native pathway into one of Europe’s strongest economies. Private placements now open. Claim your free strategy call today! To investors, It is no secret that I have been very bearish on US treasuries as a long-term store-of-value. The asset that is deemed “safe” in a modern portfolio has actually been the one thing that seems designed to degrade in value over time. TLT is down about 40% over the last 5 years and it has booked a negative return over the last 12 months. This failure of the legacy system to provide real yield leaves an opening for the new players to offer a solution to the problem. Whether that is crypto companies and products, or it is modern fintechs, there are technologists assaulting the finance industry with innovations and yield-bearing products. I asked the team at Coinbase to put together a guest post outlining the various ways they are helping users drive yield using some of these new technologies. You can read it below and I hope it is valuable to each of you. Traditional savings accounts just don’t cut it anymore. You work hard to put extra cash in a savings account for the long-term, but all you get in return is a trickle of interest that barely keeps up with the rate of inflation. Your money should work harder for you, and crypto makes it possible. The crypto ecosystem provides a long list of tools designed to help you generate real returns on your crypto and stablecoin holdings, no matter your comfort and expertise level. Earning Rewards on Stablecoins For a dependable and truly effortless way to earn in the crypto space, generating rewards on stablecoins is a great entry point. Many centralized exchanges (CEXs) or financial platforms offer programs where users can earn rewards simply by holding a stablecoin like USDC in their accounts. The basic mechanism is straightforward: you hold the asset on the platform, and the platform pays out rewards often in the form of a competitive Annual Percentage Yield (APY). While generally considered a lower-risk crypto earning method because stablecoins are designed to be pegged to a fiat currency like the U.S. dollar, users are typically still exposed to the risks inherent to the centralized platform itself. Staking Crypto Assets A longstanding method for earning passive income on countless crypto assets is staking, which is available on blockchains that use a Proof-of-Stake (PoS) consensus mechanism. Instead of letting your cryptocurrencies sit idle, you can put them to work by securing the network and earn rewards. What does that mean? It involves committing your crypto to help validate transactions and create new blocks on the blockchain. In return for performing this critical function, you receive staking rewards, typically in the form of newly minted coins. It’s a symbiotic mechanism that can passively increase your crypto holdings over time while directly supporting a network’s security and efficiency. As with any financial endeavor, there are nuances that you should consider before staking your assets such as lock-up periods for your assets and protocol penalties that could “slash” your funds. Tapping into DeFi Lending You can explore high potential yields by engaging directly with the onchain economy and lending your crypto. This process involves depositing your assets, typically a stablecoin like USDC, into a decentralized lending protocol (a common example being Morpho, among others like Aave or Compound). Here’s how it works: After depositing your crypto, the lending protocol uses smart contracts to connect you directly with borrowers who are typically looking to borrow stablecoins, often against other overcollateralized crypto assets. This removes TradFi intermediaries. The rewards you earn accrue automatically as interest paid by the borrowers, offering consistently higher yields (often above 5-6%). Onchain lending protocols often prioritize flexibility, allowing users to withdraw their funds at any time, though this is dependent on the specific protocol’s design. Lending your assets onchain introduces new risks, such as smart contract risk and the fluctuating utilization rates of the lending pool. You should make sure to understand these deeply before diving in. As TradFi interest rates trend down over the coming years, it’s time to stop letting inflation eat away at your savings. Whether you want to pursue stable growth or aggressive yields, there’s a wide onchain world of choices waiting for you to supercharge your assets’ earning potential. Ready to earn more today? Sign up or log in to Coinbase and start growing your savings! What Happens to Bitcoin When the Fed Finally Cuts? I recently sat down with Darius Dale, the Founder & CEO of 42 Macro. In this conversation, we break down the growing divisions inside the Federal Reserve, the real odds of a December rate cut, and who may lead the Fed next. 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The Pomp Audience Exclusive: Receive $150 discount when they join with this link . Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit https://www.simplemining.io/ Bitlayer - Bitlayer is powering Bitcoin beyond just a store of value, making Bitcoin DeFi a reality while staying true to its core principles of security and decentralization. Learn more about Bitlayer at https://x.com/BitlayerLabs You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. 1 Disclaimer: This is informational only and does not constitute a public offer. Bitizenship Italia S.r.l. is an Innovative Startup raising capital exclusively via private placements.