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Why does Bter offer interest?  
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Author Topic: Why does Bter offer interest?  (Read 2586 times)

ThomasVeil

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Why does Bter offer interest?
« on: July 23, 2014, 08:38:00 am »

What is their end game here? Why are they willing to pay the users for storing more value in Bter?
They mostly don't collect any interest themselves (and NXT forging doesn't make up for it). In fact it raises their risk when hacked. And it lowers their income from their (high) withdrawing fees.
Maybe people trade more if they have more in there, but I can't imagine that makes such a difference.
Or maybe it does? Because the only other simple explanation is that they're running a fractional reserve. And they need the funds to stay liquid.
Any ideas?
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DoM P

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Re: Why does Bter offer interest?
« Reply #1 on: July 23, 2014, 09:08:06 am »

What is their end game here? Why are they willing to pay the users for storing more value in Bter?
They mostly don't collect any interest themselves (and NXT forging doesn't make up for it). In fact it raises their risk when hacked. And it lowers their income from their (high) withdrawing fees.
Maybe people trade more if they have more in there, but I can't imagine that makes such a difference.
Or maybe it does? Because the only other simple explanation is that they're running a fractional reserve. And they need the funds to stay liquid.
Any ideas?
I would think the high withdrawal fees + the interest incite people to leave the dough there. And when they want to trade, they trade where their dough is. And then Bter cashes .20% at that moment, which largely pays for the interests.
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jonny

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Re: Why does Bter offer interest?
« Reply #2 on: July 23, 2014, 09:09:35 am »

I was thinking about the same, I never leave my money for more then one day at bter no matter the interest.
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Brangdon

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Re: Why does Bter offer interest?
« Reply #3 on: August 09, 2014, 04:14:04 pm »

Maybe people trade more if they have more in there, but I can't imagine that makes such a difference.
Or maybe it does?
It talks about "Daily Interest" and "Today's Interest". I've not been able to find an explanation in English. It looks to me as though you have to claim the interest each day to get it. Leave coins there for 100 days, and claim interest at the end, you'll only get one day's worth of interest. I've not tested this.

If that's how it works, it would encourage people to visit their site every day, which could well lead to them trading more. And the people who don't visit so frequently wouldn't cost them much.
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DoM P

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Re: Why does Bter offer interest?
« Reply #4 on: August 09, 2014, 08:24:28 pm »

Maybe people trade more if they have more in there, but I can't imagine that makes such a difference.
Or maybe it does?
It talks about "Daily Interest" and "Today's Interest". I've not been able to find an explanation in English. It looks to me as though you have to claim the interest each day to get it. Leave coins there for 100 days, and claim interest at the end, you'll only get one day's worth of interest. I've not tested this.

If that's how it works, it would encourage people to visit their site every day, which could well lead to them trading more. And the people who don't visit so frequently wouldn't cost them much.

That's exactly it.

If you see an interest of 5%, to actually get 5% you'll need to click 365 times a year.
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nextcafe

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Re: Why does Bter offer interest?
« Reply #5 on: August 09, 2014, 08:39:06 pm »

I'm confused about the Bter points. What are they good for?
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pt

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Re: Why does Bter offer interest?
« Reply #6 on: August 09, 2014, 08:45:18 pm »

The points are used for the voting of new coins on the site. Click the Voting link.
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megashira1

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Re: Why does Bter offer interest?
« Reply #7 on: August 10, 2014, 02:51:54 am »

These Chinese are damn well genius. Except the fact they charged me 1% withdrawal on BTSX when the coins were issued ON the exchange.  :-\
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whale

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Re: Why does Bter offer interest?
« Reply #8 on: August 10, 2014, 08:55:10 am »

These Chinese are damn well genius. Except the fact they charged me 1% withdrawal on BTSX when the coins were issued ON the exchange.  :-\

Haha sneaky!!

Like others have stated, it is to keep your Nxt on their exchange = more likely to trade on their platform.
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TwinWinNerD

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Re: Why does Bter offer interest?
« Reply #9 on: August 16, 2014, 07:48:26 am »

So that they can hoard an enourmous amount of Coins and then get hacked...

bitcoinpaul

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Re: Why does Bter offer interest?
« Reply #10 on: August 16, 2014, 07:57:15 am »

Indeed.
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Ezravdb

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Re: Why does Bter offer interest?
« Reply #11 on: August 16, 2014, 08:06:01 am »

Man, didnt expect to end my NXT adventure this fast
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TwinWinNerD

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Re: Why does Bter offer interest?
« Reply #12 on: August 16, 2014, 08:32:47 am »

Man, didnt expect to end my NXT adventure this fast

It is not over yet, BTER.com is incredible valuable, I would wonder if they can't get 1.5m USD in funding + they earned big fees the last year.

Berzerk

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Re: Why does Bter offer interest?
« Reply #13 on: August 16, 2014, 08:42:17 am »

Man, didnt expect to end my NXT adventure this fast

You had all your NXT on bter? How many?
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