Shower Thought: If you are staking stables, your only profit is the percentage over 7%

Thinking this way kind of made me wonder if I should use BTC or ETH as a “stablecoin” so to speak. I know it is so volatile but if this is the currency of the future then we are in at the right time. The question is, do you think BTC, ETH, or another coin will be our global currency?

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12 thoughts on “Shower Thought: If you are staking stables, your only profit is the percentage over 7%”

  1. I didn’t understand about the 7%. What did you mean? To beat inflation, you have to calculate (1+apy)/(1+inflation) – 1 in order to calculate real return, right?

    About BTC and ETH, I believe they are very important but far away to become global currency. We’d need all of the companies balance sheets done usind btc and eth, can you imagine this in the upcoming years? I don’t. But I’ll hodl them good.

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  2. You forgot to add the 30-50% (country depending )tax on gains then it’s approx 10% needed to beat inflation assuming 7-8% inflation

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  3. Not a fan of global currencies conversations but Btc and eth will remain top 2, max we can get is top projects in various aspects.

    We could have projects like Axie being the number one gaming token, Cartesi being number one layer 2 and so on. But general currency will always be btc, eth comes close.

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  4. BTC will never be a global currency. Even if it wasn’t so volatile, it’s completely deflationary. People who think BTC could be a currency have no understanding of how currencies work.

    The deflationary argument doesn’t apply to ETH, but it’s probably not going to be a global currency either, governments won’t allow it.

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  5. Good point. I think BTC or ETH is impractical for this purpose. BTC wrapped on proof stake block chain, Tezos. Toss some BTC in an IRA, Alto IRA. ETH on NEXO with no contract call fees. I just started experimenting with BCH on XDEFI wallet on ThorSwap. It’s not about picking the big bucket that catches the most derivatives and using it for every purpose.

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  6. I mean if you do anything with money that results in less than 7% these days, you’re not making anything. That’s not just relative to stables, crypto. Lol

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  7. Forget inflation for a second. Where are you going to get a risk free return of any whole number percent anywhere but in stable coin yields?. When you buy btc or ETH you are exposing yourself to their volatility.

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