dsr wrote: ↑Sun Aug 29, 2021 2:19 am
To be fair, when you said that you had staked for 3 months and got back 6% interest plus your original stake, it did read like you got 6% interest in 3 months. Hence my assumption of 25% annually. I presume that you actually got back 101.5% of the original stake.
I know where n=money comes from and I know where banks and building societies get their interest from (when they pay any interest, that is). Are these cryptocurrency sites, mutual or profit making? Where do they get the excess coins that they pay in interest? If you give them 100 coins and they are going to give you back 102, where do they get the extra 2 from? If they buy them in, where do they get the funds? For them to be paying interest, they must be making profits somewhere else. Where do they make their profits from?
They are businesses making profits, as I posted the graphics a couple of days ago, showing what type of business they are in, it's from their customers who are buying what they sell that makes profits same as any other business. Their customers pay with hard currency, they mint/make their own crypto which are to all intents and purposes the same as shares, you/anyone can buy as many shares in the form of a crypto coin/token/currency. The difference is that there are a limited number of coins (shares) that they will mint, but they work through an equilibrium process that coins are also burnt so the number continues to reduce, providing a reduction as we move through the future. They can reintroduce some back into circulation but only if they are from the original number stated.
Helium (HNT) is the one I have most of, there business is setting up a "global network" of low radio frequency devices that people can but from numerous vendors, you can't now buy directly from Helium. The devices use about as much power as a LED light, connect to your internet and use as much bandwidth as another person in your home.
The Helium customers are companies that make IOT devices, the info from the IOT is transmitted across the network for tracking and data information, all these IOT companies, electric scooters, dog collars, air/water/power monitoring all pay Helium in normal currency by buying data credits. The data works on Helium's blockchain, they use normal currency (dollars pounds Euros etc.) and as data is transferred, they number of data credits are used and they have to buy more. Data credits are locked at a certain amount per $1, these are separate from the coin (HNT) which are essentially the native crypto currency of Helium or the shares if you like.
Two ways you can own HNT, you can by them through a broker, same as buying shares in any company, you can be given HNT free buy owning a node or as many nodes as you want, they are using people globally to set up a linked global network of Helium nodes, no way any company could do it themselves on this type of scale, what the nodes does is pass the blockchain along and contribute to the verification of the data and funds within it. Today you earn HNT through several ways, mostly through proof of coverage (POC) and witnessing other nodes, you get a very very small amount for also transmitting data. This is because the network is building and needs to be fully established, plus the number of companies with IOT devices on the network was small, however every week or so news comes out of new companies being established on the Helium network and buying data credits. Every year the payment for proof of coverage will reduce and the payment for data credits will increase, somewhere around 2026 they will start to cross so the payments for data will equal POC, and after that will continue to increase as POC reduces.
It is a very good business plan and there are many more, which are similar but in a different use case, can be financial basis or computer basis, games, etc. I am 100% convinced a lot of these businesses will survive and flourish, some like all start up companies will fail and drop by the wayside, the big two are your equivalent to blue chip stocks, with many more trying to establish themselves as blue chip offerings, these are termed the "alt coins" because they offer an alternative method of usage to blockchains and business.
The main exchanges are in some way like the stock market indices, where you can see the price of all the crypto (shares) going up and down, they go up for different reasons but mostly the big jumps are through institutional investors or through very wealthy individuals. Quite a few of these exchanges are now offering credit/debit cards with very good incentives but to get one you need to stake a minimum amount of their native crypto and the card is basically a pay as you go type of card, I have decided which I am getting but I'm not ready to make the minimum investment yet, but when the next big correction downwards happens I will buy in.
There is an awful lot more to crypto than I think you understand, risky, yes definitely but as we all agree if you're going to put funds into stock's & shares then I think a small part of any portfolio should be in crypto, again just my opinion. For now things have gone well but it's early days for me so I know and welcome the drop when it comes so I can increase the size of my crypto in my portfolio. Plus as I mentioned I have drastically reduced the amount of cash I had in a saving account. I earned more interest in the first three months with a small test case than I did from a cash savings account over a full year, with over ten times the value of what I staked at 6% for 3 months. This is a 100% proven case for me and so I have been increasing my staked holdings where I can and in this last month I see the percentage being added weekly. Remember when the profit is added it's yours and can't be taken away, the value of the coin can reduce but the number of coins cannot reduce, they are yours.
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