My philosophy is that these lower priced decent staking percentage coins that are on a good exchange are one of the reasons behind cryptocurrency. It is to allow the average person to have a better return on their investment than banks by staking the coin and being an evangelist for the coin so others can also value by staking the coin. Prosperity through education.
a book on staking in the works that mentions bottlecaps:
http://telicalbooks.com/Staking_Book_RSPearson.htmlI read a bit of that, until
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The use of some coins, or utility as it's often called in cryptocurrency, is to create the value of producing for almost free more coins that one can sell for Bitcoin."
Utility in that context actually means 'use' in a different way, so the article is not quite accurate.
So Utility would be like if you have a keychain then it has utility as a keychain, but if you add a bottle opener then it has more utility, another use. A digital currency that has utility would be a digital currency that can be used for something besides being only 'money' with nothing, no value, underlying that. Creating more of itself is not actually utility. Primecoin has some utility because it finds prime numbers. Ethereum had utility to Vitalik Buterin because it made him rich, etc
Your staking strategy might be good if the underlying coin had utility, or if it were getting value from something, or creating use, value.
The problem is that all digital currencies now, all of them, get their value from speculative interest, from hoping the value goes up so you can sell it.
Staking is a way to get transactions confirmed on a network without a lot of energy intensive work, but as a way to make money, there is a problem which some people miss because they don't get the difference between price and market cap.
If you have a coin that pays 10% interest per year and you start with 10 coins then you will have 11 in a year.
But if there were 10 million total coins then at the end of a year there will be 11 million.
All other things being equal, when a coin pays 10% interest then its price will drop by 10% in that year. So you would have 10% more coins but each coin would be worth about 10% less.
The volatility of coins sort of hides that. So if you bought a coin at a penny and sold at a dollar, or vice versa, then the interest rate would be insignificant.
There used to be coins that had maybe 1,000% interest. It was a game of pumping the coins so people would buy them, thinking 1,000 percent interest would make them rich. But by the time they realized that when they have 1,000% more coins, the price of each coin drops, and the amount that they end up with is roughly the same value at the end of the year, no 1,000% gain, no gain at all unless they sell during a pump. And the people who buy during the pump will never get their money back unless they sell and buy a better coin that will go up.
Coins that only pay a stake and do absolutely nothing else are good coins to learn about digital currencies, but once you learn a little you should look for coins that do interesting things. Here are some examples
https://coinmarketcap.com/currencies/stellar/ has a lot of projects and a person can build their own coin on stellar. But stellar is expensive.
https://coinmarketcap.com/currencies/decentraland/ has a virtual world where advertisers can set up shop. Mana is expensive.
https://coinmarketcap.com/currencies/namecoin/ Second coin created after bitcoin. tries to provide dns service, its own websites, and other things.
https://coinmarketcap.com/currencies/xaya/ A way for developers to build new games
https://coinmarketcap.com/currencies/geocoin/ Very cool coin, but may be vulnerable to geospoofers
Each of those coins provides some utility, in a way.
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