Bitcoin: The biggest risks for retail investors buying crypto

Yahoo Finance Video and Julie Hyman

Fri, February 20, 2026 at 8:00 PM GMT+9

In this video:

BTC-USD

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BitcoinIRA co-founder and COO Chris Kline sits down with Market Catalysts Host Julie Hyman to talk more about how regular retail investors are seeing yields from bitcoin (BTC-USD) and crypto exposures.

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

For normal people, how do they wrap their heads around how an instrument like crypto or currency can produce yield?

00:08 Speaker B

Yeah, it’s the same conversation about gold, right? You put it in a you you hoard it, you put it in a safe somewhere and it sits there, right? Same concept early with Bitcoin.

00:16 Speaker B

There are just like with cash, there are people that need Bitcoin for collateral, they need it to assess payments internationally. There’s a lot of different use cases beyond what we can grasp as Americans.

00:26 Speaker B

Uh El Salvador for example, Turkey, Zimbabwe, countries that are actually using it as a balance of payments. And then there’s a need for movement and liquidity in that space that people will pay an interest for.

00:37 Speaker B

I also you see people saying, hey, especially this is retail big, I’ve got $100,000 worth of Bitcoin. I want to use that as collateral to get some dollars to make some additional investments. So it’s another layer of financialization, not necessarily making yield in Bitcoin, but putting your Bitcoin to work.

01:02 Speaker A

Are there risks in that?

01:05 Speaker B

With the this new era, the big thing is me where the who holds the key and where does the crypto stay? So what happened with FTX, Alameda in 22, 23 and Luna, nobody really knew. It was all this black box.

01:17 Speaker B

Oh, we’re just and the rates were just too good to be true. It was like 10, 18%. Like everybody knew that was going to blow up at some point. This is more conservative, 1 to 3% and people are keeping it in the same wallet and using it as a financial instrument that is not moving around in this black box era.

01:33 Speaker B

That’s helping with security because as long as you know where the assets at, you’re in a much better place than kind of like, okay, I’m just putting it here and interest is coming, but if the system blows up, there was the layers, the house of cards, is my asset involved in that house of cards?

01:49 Speaker A

Right.

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