But where does the money come from? Businesses don’t do things out of the goodness of their hearts. And there’s no such thing as a free lunch as my dad always said.

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what? we charge a fee to take a loan against your bitcoin. simple as that

If a company holds your bitcoin and then pays you a yield its fair to ask where the money comes from.

If a company holds your bitcoin but you are the one paying them interest then it's no mystery.