I’m a Bitcoin maxi, but there is one thing I can’t see how it can work…

I’m listening to “Economics in One Lesson” by Henry Hazlitt which is a great reminder of how governments should not control the money, apart from many other things. All the way through it, I’ve been saying to myself “Bitcoin fixes that…”

I’m up to the chapter that contrasts a spend-thrift with a saver and the obvious benefits of being frugal. It describes how “Benjamin” saves half his capital in a bank, which then lends that money out to help other business start up etc.

But that got me thinking, how does that work with Bitcoin, which the mantra is “Not your keys, not your coin” and thus as we all should, I have my BTC locked up in a hardware wallet. But that’s it… it’s locked up… it isn’t earning interest. It isn’t helping “the economy” by being lent out to other startups.

Is there such an analogue in the crypto world? One that you would actually trust your Bitcoin with? After FTX? I know I wouldn’t! (I used to have some of my BTC in with crypto.com’s “Earn” feature but the rate of return was negligible and it meant my BTC was in their hands, which we all know you don’t do.)

In short… I’d love to know if this problem is being addressed and where is it “safe as houses” to invest your BTC for any sort of return at all. Or are we still waiting on someone to invent a DAO or DEX that cannot be ripped off by the likes of a SBF?