Topic: CrazyLoaf's CrazySteak(TM) High PoS Investment Journal - page 13. (Read 18513 times)
Great write-up bud! A very good read
This should be fun 
PS - TEK is not 480%, it is 500%. This 480% is caused by rounding errors from marketing slogans. It went from "TEK is 40% per month" (really 41.09%) to "TEK is 40% * 12 = 480% per year!!".
For the sake of providing everyone with correct info (I am hoping this journal gets traffic), I would recommend to change your post to say 500% annual, and 41%/month.
PS - TEK is not 480%, it is 500%. This 480% is caused by rounding errors from marketing slogans. It went from "TEK is 40% per month" (really 41.09%) to "TEK is 40% * 12 = 480% per year!!".
For the sake of providing everyone with correct info (I am hoping this journal gets traffic), I would recommend to change your post to say 500% annual, and 41%/month.
Alright, so HYP, CAP, and HBN have the nice cryptocoinexplorer.com block explorers and rich lists. I've gone ahead and confirmed my addresses on these coins, so if anyone is nosy in the peanut gallery, they want keep track of my every move. In regards to TEK, the block explorer seems to be working, but the rich list isn't, so you'll just have to take my word on the address.
HYP - X
TEK - X
CAP - X
HBN - X
HYP - X
TEK - X
CAP - X
HBN - X
TRANZ-TAB-TEK TRIFECTA
Anyway, this is getting pretty long at this point, so rather than just talking to myself further, I'll try to start the ball rolling with a discussion of some core high PoS assets that I call the "Tranz-Tab-Tek Trifecta," consisting of Hyperstake (HYP), Tekcoin (TEK), Bottlecaps (CAP), and HoboNickels (HBN). A brief discussion of each follows.
HYPERSTAKE (HYP) - 750% - PURE POS
HYP is one of the newer high PoS coins, but it's notable for a few reasons. The first is that it has the highest stated PoS rate of any coin at 750%, even beating out stalwart Tekcoin (TEK)'s 500%. However, while I worried about the effects of compounding on the coin at the start, it seems that a lot of thought has gone into taking advantage of the coin's block times and staking parameters to make it where the long-run compounding of the coin will be close to the stated APR, and not some crazier level of inflation.
Developer Presstab has a financial background and I've learned a lot talking with him on the IRC about how things like max block rewards and daily number of blocks can be used to limit inflation. Co-founder David Latapie is also heavily involved in Monero (XMR), so there could be some potential interplay with that as well.
An interesting thing I see in HYP is that, due to it being a forked launch off of Truckcoin (TRK), a lot of the current HYP coins may be "lost" and not currently staking. I'm curious how the tradeable number of HYP's compare to the total 17M+ shown on the blockexplorer.
TEKCOIN (TEK) - 500% - POS/POW
Before HYP, TEK was one of my favorite high PoS coins. The only issue was that it was, and still sort of is, difficult to get a large position without moving the market. Recently, there were some issues with hard forks and staking, causing a high volume of low priced coins to appear on Comkort.
TEK is supposed to pay 40% every 30 days, making it one of the longest waiting periods of any high PoS coin. However, competing for blocks has caused that to drop to around 20%, which is still generous, but not as high.
I think even if the stake is permanently reduced, TEK could have value since it is one of the older PoS coins (1+ year old) and the current number of coins outstanding isn't that high (2.2M vs HYP's 17.6M). I also am more partial to the 30 day waiting period since it rewards holders vs traders.
BOTTLECAP (CAP) - 200% - POW/POS
CAP is an older coin that was recently taken over by HBN developer Tranz. Both it and HBN are well over 1 year old, making them some of the oldest actively developed altcoins. Tranz is also considered one of the most prolific developers in the high PoS space, pioneering such developments as multiwallets and oddities such as Raspberry Pi minting.
Once Tranz announced he was taking over CAP, the price level rose rather decently and, more surprisingly, there was a HUGE buy wall that was actually guzzling up CAPs. I recall it was 30 BTC - 50 BTC, but I have no idea how much it actually bought. Regardless, if they haven't dumped, there is someone who still owns a TON of CAPs. Maybe it's Tranz
I'm curious as to what interplay there will be between HBN and CAP, if there is one at all. Tranz has stated that he will be pushing developments to HBN first, and CAP will receive updates second.
HOBONICKEL (HBN) - 100% - POW/POS
HBN is the stalwart in this group and was the focus of TokyoGhetto's investment journal. From the start of that journal until now, HBN has had a roughly x10 increase in value from 5k to 50k sat and is now back to around where it started.
At this point I'm a little talked out since I've sort of stolen HBN's thunder and mentioned some of it's features/concepts in other coins.
Also, I was having 3 paragraphs for each coin, so my OCD is requiring me to do the same for this one even though there really isn't much value in this last block o' text
Anyway, this is getting pretty long at this point, so rather than just talking to myself further, I'll try to start the ball rolling with a discussion of some core high PoS assets that I call the "Tranz-Tab-Tek Trifecta," consisting of Hyperstake (HYP), Tekcoin (TEK), Bottlecaps (CAP), and HoboNickels (HBN). A brief discussion of each follows.
HYPERSTAKE (HYP) - 750% - PURE POSHYP is one of the newer high PoS coins, but it's notable for a few reasons. The first is that it has the highest stated PoS rate of any coin at 750%, even beating out stalwart Tekcoin (TEK)'s 500%. However, while I worried about the effects of compounding on the coin at the start, it seems that a lot of thought has gone into taking advantage of the coin's block times and staking parameters to make it where the long-run compounding of the coin will be close to the stated APR, and not some crazier level of inflation.
Developer Presstab has a financial background and I've learned a lot talking with him on the IRC about how things like max block rewards and daily number of blocks can be used to limit inflation. Co-founder David Latapie is also heavily involved in Monero (XMR), so there could be some potential interplay with that as well.
An interesting thing I see in HYP is that, due to it being a forked launch off of Truckcoin (TRK), a lot of the current HYP coins may be "lost" and not currently staking. I'm curious how the tradeable number of HYP's compare to the total 17M+ shown on the blockexplorer.
TEKCOIN (TEK) - 500% - POS/POWBefore HYP, TEK was one of my favorite high PoS coins. The only issue was that it was, and still sort of is, difficult to get a large position without moving the market. Recently, there were some issues with hard forks and staking, causing a high volume of low priced coins to appear on Comkort.
TEK is supposed to pay 40% every 30 days, making it one of the longest waiting periods of any high PoS coin. However, competing for blocks has caused that to drop to around 20%, which is still generous, but not as high.
I think even if the stake is permanently reduced, TEK could have value since it is one of the older PoS coins (1+ year old) and the current number of coins outstanding isn't that high (2.2M vs HYP's 17.6M). I also am more partial to the 30 day waiting period since it rewards holders vs traders.
BOTTLECAP (CAP) - 200% - POW/POSCAP is an older coin that was recently taken over by HBN developer Tranz. Both it and HBN are well over 1 year old, making them some of the oldest actively developed altcoins. Tranz is also considered one of the most prolific developers in the high PoS space, pioneering such developments as multiwallets and oddities such as Raspberry Pi minting.
Once Tranz announced he was taking over CAP, the price level rose rather decently and, more surprisingly, there was a HUGE buy wall that was actually guzzling up CAPs. I recall it was 30 BTC - 50 BTC, but I have no idea how much it actually bought. Regardless, if they haven't dumped, there is someone who still owns a TON of CAPs. Maybe it's Tranz
I'm curious as to what interplay there will be between HBN and CAP, if there is one at all. Tranz has stated that he will be pushing developments to HBN first, and CAP will receive updates second.
HOBONICKEL (HBN) - 100% - POW/POSHBN is the stalwart in this group and was the focus of TokyoGhetto's investment journal. From the start of that journal until now, HBN has had a roughly x10 increase in value from 5k to 50k sat and is now back to around where it started.
At this point I'm a little talked out since I've sort of stolen HBN's thunder and mentioned some of it's features/concepts in other coins.
Also, I was having 3 paragraphs for each coin, so my OCD is requiring me to do the same for this one even though there really isn't much value in this last block o' text
General Thoughts on High PoS
High PoS coins to me sidestep the issue of trying to be compete in the very crowded "next Bitcoin" market by being something completely different: crypto debentures or bonds.
Let's look at a few aspects of high PoS coins and think about them in relation to bonds.
Coins pay a PoS rate that is fixed in the short term while their face value can fluctuate based on market sentiment. Think receiving a 2% stake while the market value of the coin reduces by 8% at the same time.
Coins can have their PoS change based on the original parameters of the code as a reaction to current and future market sentiment. For example, fewer people stake, making the stake difficulty go down and the PoS rate higher to entice people to stake, sort of how bonds entice investors with higher rates than competing offerings.
Sentiment and ability to "pay" via PoS can be seen in network strength. I could go on with details, but I can't think of any more clever ones at the moment and I think the point is clear.
High PoS's Place in Crypto
While I don't think for a second any high PoS coin will supplant Bitcoin or whatever becomes a member of the dominant crypto CURRENCY market, I do believe there is a place for high PoS within the crypto ASSET market.
Taking the debenture analogy a little further, high PoS coins act as multi-form assets. You own a share of the total coins outstanding, like a stock, but at the same time, you are guaranteed a payout of assets, like a bond. It's like super preferred stock, or something altogether completely different.
Anyway, let's just provide a use case for a high PoS coin. Say BTC or some dominant crypto's price has stabilized fairly well. You have spending that you want to do in the future, but you want a return now due to the time value of money. Where do you park your money? Wouldn't an older, stable high PoS coin be a viable option?
High PoS coins to me sidestep the issue of trying to be compete in the very crowded "next Bitcoin" market by being something completely different: crypto debentures or bonds.
Let's look at a few aspects of high PoS coins and think about them in relation to bonds.
Coins pay a PoS rate that is fixed in the short term while their face value can fluctuate based on market sentiment. Think receiving a 2% stake while the market value of the coin reduces by 8% at the same time.
Coins can have their PoS change based on the original parameters of the code as a reaction to current and future market sentiment. For example, fewer people stake, making the stake difficulty go down and the PoS rate higher to entice people to stake, sort of how bonds entice investors with higher rates than competing offerings.
Sentiment and ability to "pay" via PoS can be seen in network strength. I could go on with details, but I can't think of any more clever ones at the moment and I think the point is clear.
High PoS's Place in Crypto
While I don't think for a second any high PoS coin will supplant Bitcoin or whatever becomes a member of the dominant crypto CURRENCY market, I do believe there is a place for high PoS within the crypto ASSET market.
Taking the debenture analogy a little further, high PoS coins act as multi-form assets. You own a share of the total coins outstanding, like a stock, but at the same time, you are guaranteed a payout of assets, like a bond. It's like super preferred stock, or something altogether completely different.
Anyway, let's just provide a use case for a high PoS coin. Say BTC or some dominant crypto's price has stabilized fairly well. You have spending that you want to do in the future, but you want a return now due to the time value of money. Where do you park your money? Wouldn't an older, stable high PoS coin be a viable option?
General Thoughts on Crypto
At this stage of the game, crypto is a minefield. While it would have been nice to put a few thousand in BTC when it was sub $1, we operate in the here and now and that doesn't seem likely to happen again, so rather than whining about it, we should try to see how to best operate moving forward.
For all the features being released on the market, at their core, most coins operate towards the idea of being a store of value/unit of exchange. But let's be reasonable here: are we going to use Milkcoin for milk and Breadcoin for bread? Expanding further out, why do I even need 10-15 different types of cryptos in my wallet to use as transaction currencies?
Now, the argument can be made that there are a lot of different credit card and bank transfer companies. However, I would make the point that while there is a lot of variety in operators, there is still only one currency being transmitted, local fiat. I think crypto will operate in the same way in the long run, with only at most a handful of coins being in common use. In the interim, however, who knows what will happen? I mean, we've got a long way to go to reach the levels of the Dotcom bubble that saw TRILLIONS of dollars in paper wealth vanishing. Much excitement
At this stage of the game, crypto is a minefield. While it would have been nice to put a few thousand in BTC when it was sub $1, we operate in the here and now and that doesn't seem likely to happen again, so rather than whining about it, we should try to see how to best operate moving forward.
For all the features being released on the market, at their core, most coins operate towards the idea of being a store of value/unit of exchange. But let's be reasonable here: are we going to use Milkcoin for milk and Breadcoin for bread? Expanding further out, why do I even need 10-15 different types of cryptos in my wallet to use as transaction currencies?
Now, the argument can be made that there are a lot of different credit card and bank transfer companies. However, I would make the point that while there is a lot of variety in operators, there is still only one currency being transmitted, local fiat. I think crypto will operate in the same way in the long run, with only at most a handful of coins being in common use. In the interim, however, who knows what will happen? I mean, we've got a long way to go to reach the levels of the Dotcom bubble that saw TRILLIONS of dollars in paper wealth vanishing. Much excitement
A Few Notes
Okay, the thread is moderated from the start on the off chance any spamming, fudding, and/or trolling occurs. Assume that I own all coins mentioned and even coins not mentioned. I'm not doing this as a public service or anything, so if you end up losing your 0.1, 1, or even 10 BTC to something I mention, it's not my fault. I'm pretty lazy and may end up dropping this at any time if it starts to resemble more "work" than "fun."
Special Thanks
Full credit to people like TokyoGhetto and StakeHunter for turning me on to this investment style. Also thanks to high PoS coin creators and developers such as Tranz, Presstab, Thundertoe, Unick, Palmdetroit, and others for their continuing contributions to the high PoS investment arena.
Also, if anyone wants to piggyback and start and/or continue a high PoS investment journal in this thread, you are welcome to do so. You'll probably update more frequently and provide better analysis than me anyway
Okay, the thread is moderated from the start on the off chance any spamming, fudding, and/or trolling occurs. Assume that I own all coins mentioned and even coins not mentioned. I'm not doing this as a public service or anything, so if you end up losing your 0.1, 1, or even 10 BTC to something I mention, it's not my fault. I'm pretty lazy and may end up dropping this at any time if it starts to resemble more "work" than "fun."
Special Thanks
Full credit to people like TokyoGhetto and StakeHunter for turning me on to this investment style. Also thanks to high PoS coin creators and developers such as Tranz, Presstab, Thundertoe, Unick, Palmdetroit, and others for their continuing contributions to the high PoS investment arena.
Also, if anyone wants to piggyback and start and/or continue a high PoS investment journal in this thread, you are welcome to do so. You'll probably update more frequently and provide better analysis than me anyway
Introduction
Ahoy! So it looks like the high PoS markets are pretty quiet atm, so in the interest of getting discussion going again, I'll just start talking out into the dark until someone hears me and tells me to quiet down
Crypto Background
I originally got into crypto in the last BTC rush. My original strategy was "buy everything," and I had positions in well over 1000 coins and crypto assets at that time. While I still think a more abbreviated version of that strategy, say equal amounts of top 50 coins by market cap could work, I've moved to high PoS coins and several active positions.
I only recently gobbled down bigish chunks of high PoS coins like HBN. While BTC has gone down in price since then, the Satoshi price level of HBN is kinda where it was ago almost a year ago, so it seemed like as good a time as any to just jump right in.
Part of the reason for my willingness to just randomly purchase willy-nilly is that I've wanted to do a high PoS portfolio for months. As a matter of fact, I remember seeing the old HBN website and thread with the vagrant grilling a sausage or something as the coin logo and being really interested in the almost weekly 2% interest rate.
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