Bitcoin Forum

Just found this staking calculator: https://ethereumprice.org/eth-2-calculator/
which allows you to calculate how much "money" you will make staking ethereum.

Let's say you stake 100 ETH, each year you get 14.26% (compound interest) so 114.26 in first year

The ROI is good (just like real estate) but why would someone stake cryptocurrencies in a
volatile market? The price of Ethereum will move so much that it can send any investment
to bananas

First reason why people want to stake is because of the potential profit. I think it's already considered that the market is volatile because we're living on this.

The other reason is helping to validate transactions regardless of how much the reward will be.

I have thought about holding it for the staking. But on a second thought..

Is infinite supply + this kind of staking return a good idea? Wouldn't it drive the price way, way lower for ETH hodlers that do not qualify for the staking? To me it sounds like other coins with PoW like Bitcoin are way better investments. With BTC you have halving, limited supply, huge mining power, decentralization etc.. aren't these features way more advantageous than ETH2.0's?  ???

If you have a positive expectation about market development of ETH than its definetly +EV. The same also applies to the real estate market as we have seen during the last financial crysis where especially in the US house prices dropped a lot.

thats what i dont understand why everyone is so hyped about ethereum

isnt infinite supply a bad thing?

Good question. It's actually part of the problems with staking. I guess the deflationary nature of cryptocurrency made staking very attractive. Inflation (and not necessarily volatility) could make it less attractive. A good project will still attract "real stakers" though, especially if its coin won't be inflationary or is moderately deflationary