32 is one of my favorite numbers. There are 32-bits in an IP Version 4 address, I was 32 years old when I went to live in Iraq. If you add 10 to it, you get the answer to life, the universe, and everything. But why would I want to own 32 Ethereum?
Staking
Ethereum is going through a transition from a Proof-of-Work (PoW) to a Proof-of-Stake blockchain during the Casper hard fork. If you want to unilaterally host your own consensus node, that is, and not have to pool your ETH with others, you'll need to own 32 ETH. While the cost of 32 ETH is not chump change, even at current prices, we are still close to within ten percent of all-time highs.
Most estimates I have seen put staking rewards between 5-10%, but this number should vary depending on how many stakers are on the network. Going forward, the more expensive the ETH token becomes, the less people who will be running a node. The less people running a node, the higher rewards node operators will receive. For more information, check out: https://www.stakingrewards.com/asset/ethereum-2-0
While I'm Waiting For 2.0
So how do I currently HODL my ETH? I sent just over half my ETH to BlockFi, where I get 4.5% interest paid to me in Bitcoin. This is a really cool feature, because I can stack Satoshis while I'm holding Ethereum and waiting for ETH 2.0 to kick off. If I leave those Satoshis in my BlockFi Account, they start earning interest on those too! That being said, I refuse to put all of my eggs in one basket, so I hold the rest of my ETH on my Ledger Nano hardware wallet.
[screenshot source]
Above are the rates you'll receive for depositing various cryptos. You you'd like, you can also take out a loan and use your holdings there as collateral. If you are interested in earning some interest on your crypto, consider signing up with BlockFi at https://blockfi.com/?ref=4c83ac5f
When ETH 2.0 Arrives
When ETH 2.0 arrives and I want to participate in staking, I have a couple options. I can:
- Find a stake pool
- Host my own node
Stake pools are good if you would like to stake ETH with less than 32 tokens. The downside is you will need to deposit your ETH into the pool's wallet, and also pay fees. If you prefer to use a VPS provider or host your own physical node, you can run the Ethereum 2.0 node software yourself. This means you could maintain control of your private keys, but would be directly responsible for the security, and care and feeding of your consensus node.
But Those Returns Aren't Spectacular!
For some people, single digit percent returns in the crypto world are something to laugh at. I disagree. While some people might be able to simply trade ETH and get a better return, that requires active participation. What I'm talking about here is passive income. I fully understand that these types of returns are not impressive for ETH at $140, but what about $1,400, or $14,000? I see ETH as a venture capital play for a decent passive income in the future. If I am right and ETH fulfills its potential in the medium to long term, I'm looking at earning passive income in perpetuity on what could be the largest smart contract platform on the planet. If I am wrong, I lose my investment. Nothing ventured, nothing gained.
Thanks for reading. Do you hold any ETH that you plan to stake (32 or otherwise)? Please let me know what you think in the comments below.
Posted from my blog with SteemPress : https://joshman.com/why-i-hodl-32-eth
Buenos días amigo joshman me alegro que estés por aquí por este medio y deseo que se encuentre bien .feliz día amigo
I am also planning to stake ETH when PoS comes. Have already been hodling my 32 ETH for quite some time 😉
Nice, well-played! I hope that wasn't all time high ETH! ;)
Thankfully not but my average purchasing price for ETH is still above the current price 😅
I have access to about 100 times less ETH, and I'm not doing anything with it other than hoping one day it won't be dust and I can get some BTC for it.
You're brave, sending half of those coins off to a custodian. Is that BTC return a yearly rate?
I don't know about that, BlockFi is institutional-backed. Would I send all of my funds to a custodian? No, but I don't believe in keeping 100% of my assets in a hardware wallet, when I could be participating in the industry and also generating a return on them.
I don't know about you, but the value of 16 ETH is more than I make in 3 months at current prices.
You do you, no judgement, but I don't trust like that.
No love for financial institutions from me.
I definitely can relate to that position, and I certainly take it with the majority of my holdings in crypto. My view is that to some extent these two worlds must connect, so I'm also trying to participate in and capture that knowledge as well.
I don't have any Ethereum.
So, what's your 2nd favorite number?
I'd have to say 9.
The 32 number is obviously associated to many importance in your life