Raising The Stakes
Hey Jesscoiners
I've been in the crypto space for some time now, and I've seen some crazy things unfold over the years. Bitcoin has kept secure and continues to do what it does best, secure transactions, distribute coins and allow people to own their stake if they so choose. A lot of people feel they've "missed the bus" with Bitcoin, I do feel it sometimes too, but I'm still committed to my goal of having one BTC set aside for my 21 club membership and messing around with the rest.
Then we get the alts, the wild west of crypto, where everything is made up, and the values don't matter. One of the most popular of these alts in Ethereum, a lot of people are bullish on this chain, and I'm pretty confident in Vatilak's abilities.
I own ETH myself; I use it now and again with their shitty Dapps, its got some promise yes, its also full of bugs and has pivoted more times than I can count.
First, it was a smart contract play; then a fundraising ICO plays, later a dapp play now it's all about De-Fi. Do I think this play will stick for ETH as their use case? I don't assume so; it will continue trying to find something that sticks of that I'm sure.
DE-FI'ing the odds
As banks continue to lower interest rates or in some cases negative interest rates this punishes savers for doing the right thing, we're being forced to de-fi the odds to speak. De-Fi offers consumers a place to park their money to try and beat inflation at the least and protect the wealth they've worked for, and I think it's going to only get more popular with time
If we look at how many people are living paycheque to paycheque, savings is something we need more of in this world. As De-Fi heats up, you'll get some pretenders, and I think its important to make the distinction.
Faux-De-FI
I openly use services like BlockFi, Crypto.com and the Celsius Network, they give me a return for the use of my funds, just like a bank would, just because the measurement is in crypto doesn't make it DE-FI. This is blockchain banking and custodial ownership, you're still an unsecured creditor in this scheme, and there's always a systematic risk.
Companies can be hacked, as we saw with BlockFI this year to targeted with regulation and taken down, their insurance may not pay out during a collapse just as a bank would, and these companies won't get sweetheart deals by government.
There is a risk, but I am happy to take it on. The rates are favourable, and the asset range and ease of use are worth taking it on for me, that is.
Real De-FI
Real De-Fi to me is when you have ownership of your stake and can access it at any time and make decisions on what to do with it, without having to ask permission. Currently, coins I stake are STEEM, HIVE, TRON, TEZOS, ATOMIC Wallet Token and I Soft stake Kucoin shares and NULS.
I'll be staking one more in Cardano once Shelley is finally up and running too. Staking allows me to earn passively in that native cryptocurrency at various intervals. I could go through when each one pays out and the percentages they provide at the moment, but this blog post would then be a mile long.
Is their risk in this? Yes, many of these altcoins are still centralised, you can be forked out, the network can be taken over, the project can be scrapped or abandoned by the original team and so much more. Yes, you have ownership of your stake, but you need to have trust in the network and the governance which is a whole another story.
A stakeout
What I am doing is spreading my risk and trying to get the best yield from what I am willing to invest. I think staking is going to become more popular as coins try to seduce investors into their ecosystem to either participate or have them part with their BTC.
I think staking is essential because it takes an already deflationary based asset class and takes the concept of saving and pushes it to new levels, it makes weaker hands stronger and drives home a habit we've lost, the practice of wanting to save.
Have your say
What do you good people of HIVE think? Are you staking any coins?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
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Having savings is indeed important. Never know when you are going to need them.
Or when opportunities come your way that you could take advantage of like a trip, joining a course, starting a business, getting a good deal on something! Having that ability not only make the decision but execute it is almost priceless
I agree!
Hi chekohler! Currently, I am staking CRO and it benefited me greatly as there is a run up to the price and I am pretty ecstatic about it. Upvoted!
Nice one, why did you choose to stake CRO over MCO?
The reason is it is cheaper to own a huge amount of quantities of CRO as it is 10 cents and MCO is $5 plus. This is my own opinion. I don't know if either one of them will come out on top when the bull run occurs.
Ah I see and do you get a better return on your CRO? I bought MCO back when it was 2 bucks so I’m 150% up on it! I still need to research the difference between the two
It is difficult to pass up on the opportunity of earning 16% interest on CRO. I bought CRO when it was around 3 cents back in December. Extremely happy about the profit. Nice man, you bought MCO early and having quite a pretty profit
wow 16 I didn't know thats the premium on CRO, will need to get some of that too :)
Staking is a nice long term investment but there is also certain degree of risk like whether the company that we are staking our crypto with is reliable. Some may feel that staking is like getting our crypto gettin stuck but it is still better way to earn than trading when market movement can be unpredictable. I guess everything has certain degree of risk so it depends on our own appetite and risk tolerance.
Exactly its not as if staking is risk-free, as you said the company can shit the bed or in some cases, the entire chain and there can be no market to sell it into so yes I try to be open about the risks so people know before they try.
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BEER.ENGAGEtokens.Interesting topic which, other than DPoS, had been unfamiliar to me. Thanks for sharing.
Thanks, glad you found it informative I hope you will venture outside the DPOS space lol. I think DPOS isn't that bad, it just needs more failsafe, so when its small I think their needs to be more of a POW running that selects randomly from those eligible to produce blocks and then once it reaches a certain level of scale the difficulty can adjust or fall away even. I was reading something like that can't remember where
That is an interesting mod to DPoS Governance. As it stands right now it is ripe for corruption. This has been displayed on both chains quite vividly. The corruption on the STEEM blockchain is so obvious it needs no highlighting yet the corruption on the HIVE chain, and indeed the motive for the fork, is more subtle.
The HIVE fork was always an option. Just because STINC had changed ownership did not make it any more urgent. If truth were known it should have been done a couple of years ago when @ned and the V.22.2 Cabal had a bit of a show down. Yet they seemed to have reached an amiable agreement where @ned would not walk on the V.22.2 Cabal's toes and they would let him continue the rape of the STEEM value through his sell offs of ninja mined tokens.
The big difference was that they had no such gentleman's agreement from JS and it looked like they would not be getting one. Instead of bringing the discussion to the community of how things might be shaped in a new forked chain to bring better decentralisation and fairness of distribution to the chain they bolted to retain the same status quo. Not even witness vote retention was dealt with in the newly forked HIVE; that is severity of single mindedness of the fork.
So it occurred to me that most of the weaknesses in DPoS Governance takes place when the majority stake held by a small group of individuals wishes to retain the status quo. This brought an idea to mind.
What if one's Hive Power is weighted against how much value one takes from the ecosystem. Then whales who abused self voting on shit posts or witnesses token grinding in the top twenty slots would find their HP has less power than those who post non-rewarding posts or send some of the rewards to other beneficiary.
We may find that such a system works to weaken the status quo and allow new, fairer and more sensible changes to come forward through SPS and those that oppose them voted out through the use of non-status quo witness voting.
Yes, I think I get what you're saying the governance on the chain shouldn't have to rely on the goodwill of those at the top, that's basically what we have as current governance everywhere so why have it blockchain, we know it doesn't work and doesn't scale well. I think that we should be adding more layers to a chain, currently its one funnel to get rewards and that's blogging/curating which is a whales game.
Until their are other ways like earning based on your views, tipping, subscriptions, that allow just the normal content creator to use it and earn without stake its always going to be that way.
I think we should be looking to actively dilute distribution by inflation and ramp up other forms and that can spread the value and reduce whale impact, we will never make it go away we can only reduce it over time, but I don't see much of it happening yet
It will take another hard fork as the V22.2 Cabal will never give up their status quo. Look at HIVE. It is STEEM without STINC yet with all the Ninja Tokens controlled by the V.22.2 Cabal in the SPS slush fund.
As much of a snake oil salesman as @ned was STINC did counter the Cabal's total dominance. To see the vote bot salesman, @therealwolf, now siding up to the ninja backed SPS slush fund for a little taste makes me want to gag.
No doubt I agree with you theirs a strange game theory that happens when people are able to have a counter balance and not their own echo chamber unless theirs at least 3 factions do stake keeping one another in check it will always be a free for all for those at the top
I don’t have that much stake in the chain so I’m not too bothered if it goes to zero! I do like seeing how decentralized governance plays out in this stage and how much of a lip service it is, hive isn’t the only one! I’ve seen the same with EOS and other chains too! Seems to be a learning curve that will kill a lot of projects
Yeah interesting stuff. Watching @openorchard with much anticipation.
good breakdown, ty
Happy to be of service let me know if you do stake anything or have other stuff I should look into