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I agree, still I am not gonna put my Bitcoin into Defi or give it to a centralized entity. However, the risk-reward profile in Germany is different, since we don’t pay taxes if you hold BTC > 1 year

Juraj 2y ago

You have a false dillema there. There are more options than DeFi or a centralized entity. Firefish is on Bitcoin network, P2P, without a single centralized entity. You can make a home-baked loan with your family or friends (multisig). You can buy a future (that replicates the loan) - both centralized and decentralized. You are risking much less than you borrow in this case.

BTW: In case of tax in Germany, do you need to report the holdings? Because that would be a no-go for me, if I have to report btc holdings to a centralized entity.

Firefish whitepaper here: https://docs.firefish.io/firefish-protocol

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StackSats ⚡️ 2y ago

No you don’t have to.

Anyway, putting your Bitcoin into Defi and sending it to a centralized entity is ok for you, but reporting it to a centralized entity is a no-go? Doesn’t make sense to me.

For me both is a no-go

(I understand that there are other options, I am still not convinced to take any risk on this asset for some upside. I don’t like the risk reward profile)

Juraj 2y ago

For me, putting bitcoin into defi (not a centralized entity) is much more ok than reporting it to a state.

KYC with reporting is a hard no for me.