It's all about the ROI. The APY for staking is 5% for SOL which is obviously on the lower side when compared to other investment methods.
A fixed deposit in bank in my country gives around 7% and fixed bond interest is around 10%.
But then we also have to look at diversification perspective and hence Staking is not that of a bad option after all.
Besides that, holding on to staked SOL adds a benefit of the price increasing thus getting more in rewards when exchanged to fiat at a later point of time.
Staking is only bad when used as a primary means to earn money. By saying I want to buy x token (eg SOL) because I want to earn staking rewards is a flawed mentality. The clearest example of this is the ETH tokens that Tom Lee's Bitmine purchased and staked ETH, and at the current ETH prices, they have lost $8.8B+. And staking rewards can't cover the losses. It's the same story with Forward industries on Solana.
True that. The only reason I would ever stake is if I have bought the currencies for long term and expect the price to pump in few years.
In that case, instead of keeping the coin in main wallet it's better to stake it to earn the staking rewards.
