i just cant see a good rate of return buying 250k at 1000sats is 2.5btc = $686 weekly payment 0.01btc-0.02btc = $5.4 is it reall worth it. i would only ask that if it was reduced it would be much interesting and attractive. not worth it for me
In this ecosystem, there is no easy money. If you want to earn you have to actually do something, be it investment, offering services or even just mining. But keep in mind that as interest increases so does mining difficulty, and so does price. However , as the trust protocol matures Banks will be more willing to loan out funds. If we allow any small interest to have bank then we risk scammers running fly by night operations resulting in problems for the average user. The investment has to be large enough to discourage such people and also reflect the commitment of the owner to providing the service.
Allow me to correct you a little, then think over what i say. It actually costs 1.8 BTC right now to purchase enough for a bank node. So let's do some math, since hashrate doubled over the last few hours.
You are now only mining ~
2500 BCR a week, at current rates that is
0.017 BTC. And that is mining with some serious hardware to compete in this environment.
Randomuser1 instead spends
3.6 BTC and sets up two nodes with an additional
25K BCR for operations. He is 1/20 existing nodes and earns ~
2000 BCR per week for his nodes. He will earn
0.04 BTC per week just for having the nodes. This means 9 weeks his nodes are already in the black.
Because he is a bank he can now perform operations such as escrow, Insurance and contracts.
Say in the first week he takes a 80k BCR contract for development of the Android mobile wallet and negotiates investment insurance for
40K BCR @ 5% rate. He then manages to do the job with
70K BCR. He pays his insurance agent their 5% and keeps the rest. So of the 10K profit, he pays 2K insurance, leaving him with
8k BCR, or
0.16 BTC. His total for that week is
0.2 BTC. Depending on how much liquid BCR he has , he may have taken on smaller jobs like insuring your payment for some odd jobs in the crypto-world. which can potentially increase his total earnings. The only limit to how any contracts he can do is his monetary constraints and demand for his services.
Say the next week a worthwhile individual decides to start a new asset/coin but they lack the funds to pull it off, they approach hi as a bank to lend them the funds and help set it up, in exchange say for a 3 % premine, or a hard-coded 3% of every block. If it is a good investment that is managed well, the bank can make untold profits by indulging in such activity. This also benefits our ecosystem either through the insurance one may take out on their investment or by the resulting stimulus of the removal/addition of large chunks of coin at times, as well as attracting more users, investors and entrepreneurs.
Note that once a person starts turning a profit, they are likely to buy more BCR and expand their operations. This creates a lot of buy pressure, resulting in even higher prices.
At a later date, our random user may find that maintaining two different nodes is too much work, especially when they start processing loan requests. So he may decide to sell his node at a 20% profit. That is
300k BCR which may be worth
9 BTC or even more depending on market conditions.
The PoS fad has ruined the average user mentality in that they were getting used to easy money and forgot that real money, real profit, real crypto comes from work, development and business mentality. Now that people are wising up you see the majority of those coins are struggling and floundering. This is because there is no real ecosystem, it's just a flood of emissions without economic activity to support it.
It's not a hand outs system essentially a "
what you kill is what you eat" system, where you only get something if you actually did something.
Miners earn small tx fees , nodes earn processing fees and banking tx fees. At times of surplus reserves they can be subsidized to encourage lending, in return users could use the funds to earn more.
So if you have a talent , say graphic design, you could potentially start as a normal user, but if you sell your warez for BCR you can potentially make enough to have a node of your own. Likely you can actually make the required 250K long before someone who tries to do it through mining only.
Don't get me wrong, mining is important, it gets the chain moving and also introduces new money , but what actually gets any economy moving is trade. So trade your skills/warez up the ladder.
the math was right i was using 1000 sats as a example. i understand your calculations too that is perfectly right but my maths were based on what is guaranteed. to make good profit it needs to rise but as the currency isn't a short term one where only early investors make profit but any investor when they buy should make a decent profit. there will come to a point where the price will not rise as the return would not be worth it also by having a large buy in of 250k you have the risk of the whole thing being manipulated by big players. of course there is a risk of scams but that happens in the real world. people will find new ways to scam. having small players keeps it balanced even though risk of scam. i will be haven't fully read the entire plan. This is something i have been working on, the same idea for past 4 months but you have actually implemented which looks amazing, i was planning to call it loan coin.
i'l look into it a bit more detail and give my feedback because i think if this is made correctly can be fruitful.
your maths are based on the price rising. it cannot rise all the time
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