Why Earning 1 Crypto Dollar Builds Me More Wealth Than Earning $25 Fiat

in LeoFinance7 months ago

Of course this statement doesn't make any sense.

You can always take the $25 fiat, invest it in crypto, and now you are "winning"

However, if you take a look at my specific situation, my statement starts to make sense.

I live in Southern California, so earning $25 per hour is well within the realm of possibility.

I also have enough Hive Power to where an hour of reading and commenting, especially if done through the leo interface will earn me at least 1USD in crypto - even after the splits with the curators.

Real world math says that $25USD will not be converted to crypto

The fees to get the income into the cryptoverse would dwindle it bunches, plus there's lots of "real world" uses that I can use that $25 for.

$25 is enough for gas, for a couple days worth of food, for a kid pair of shoes, for a starbucks drive thru, for some books or even a toy.

Screenshot 20220502 12.02.08 PM.png
5.29 per gallon is today's "cheap" price

And those are investments too.

Enough to where I will not earn $25 fiat, (minus the taxes) and convert them to crypto.

It might be different if I was earning extra $25 fiat, above and beyond my usual earnings

And it came at a time where all my bills were paid.

But, if there is an electric bill in the mail box, you best believe I am paying that before investing $25 into crypto.

Basically, the $25 would be spent.

Now let's say I earn $1 USD worth of crypto.

There is NO WAY, I am going to transfer that out. The fees would make it negligible, and 1USD would do nothing for my lifesytle.

I can't even buy something at the dollar store. Mostly because it is not the 1.25 store, but also because I would not be able to afford the tax.

So the crypto is going to stay put, probably in the form of 20% earning HBD.

Screenshot 20220502 11.43.53 AM.png

After 5 years, it will be worth 2.70

How much is that fiat worth after 5 years? Well, nothing. Its long gone. I can argue that the (insert purchase here) was an investment in my future... but its gone.

Those crypto numbers are not very impressive either.

$2.70 won't even get you a Rising Star card pack.

But let's say I earn $25 a day for 365 days straight.

Guess what, I still live in Southern California.

$25 per day for 365 would net me $9,125. I can almost cover three mortgage payments with that amount. It is still an easily spendable amount of fiat. In fact, if that's all I earned, I would be well in the poverty level.

But $1 a day for 365 days?

Screenshot 20220502 11.47.32 AM.png

I started with that $1 crypto dollar, and added 30 per month, with a 20% interest rate thanks to our HBD. After 1 year, you have

$402.71

You aren't driving a lambo. But you do have some wealth.

And what if you let those $402, sit... for 5 years. What happens then?

One year of earning, plus 5 years of sitting at 20% interest rate. $1085

Screenshot 20220502 11.52.37 AM.png

Remember, the fiat has been long spent by now.

Let's get crazy, and let that one year of earning $1USD per day, and let it sit for 30 years all the while earning the 20% interest rate.

$154,626.13

Screenshot 20220502 11.54.44 AM.png

Do you feel wealthy yet?

Do you think you can earn $1 per day for 365 and then let it sit?

I understand and can faintly hear all the "no's"

But Metzli, what about inflation?

But Metzli, what if the blockchain fails?

But Metzli, what if the HBD stops paying a high interest rate.

That is why you have to keep paying attention, and diversify, and move your money when you personally think it is ready to be moved.

My only true point is that ZERO investment always equals ZERO wealth building.

Are you ready to invest?

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Hi :-) I really have to read myself through your postings to change my mindset.
Happy to meet you here :-)

Happy to see you here.

<3

I hope people start realizing the power of compounding your crypto. It's a marathon, not a sprint.

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Yes.

It is a marathon, not a sprint.

Or more like cross country running, you can run a whole bunch, stop at an outpost and hang out with your friends, and then start running again.

You can take breaks!

Happy to have you visit my post.

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Very good example!

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Makes excellent sense to me ... thanks!

Thanks for visiting :)

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It's simple math, glad you made it simple for us to understand.

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Thank you for visiting.

It seems really complicated until it is broken down.

Crypto used to be this big cloud of "what the heck is that" but if you read enough posts, it starts to make sense.

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Congratulations @metzli! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You got more than 7750 replies.
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Check out the last post from @hivebuzz:

Feedback from the May 1st Hive Power Up Day
Be ready for the 5th edition of the Hive Power Up Month!
Hive Power Up Day - May 1st 2022

Those numbers are really starting to get big.

How many of those replies are from you? Lolsssss

Probably some of them yes, but a lot from other users too! Congrats @metzli 😊🌹

Wow this is excellent posts. Understand the power of compounding. I buy stocks every month to average out the price. I don't really like buying a lump sum. The same is with crypto. The interest calculator is so useful, I need get an app !

I use nerdwallet most of the time.

But sometimes it doesn't fit my needs so I google "investment calculator"

I have been playing with those since back when I used to write for @spinvest.

That's the team that taught me the power of compound interest.

I had heard about it many times before but I had never really seen it in action.

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Compound interest is amazing if you just let it work. So I really like HBD and I was already moving HBD into my savings when the APR was 12%.

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20% is just crazy.

If you look at the small print, 20% compounded monthly is really the same at 21.929%

Such a big win for those of us who can take advantage of it.

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Your content has been voted as a part of Encouragement program. Keep up the good work!

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Thank you!

Yooo, that interest calculator, pretty cool! I wanted to make one. I'll go steal their code.

hahah.

When you make it, please share.

Maybe you can add a moon or a lambo button to it.

You clearly painted the power of compounding and when done consistently. Thank you for this!

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You are very welcome.

<3

There's a bit there about letting it sit too - we can take breaks!

I recently took a nine month break from the blockchain, and although I know I "lost out" on lots of nice rewards, I gained perspective on compound passive income.

Made me even more of a HIVE lover.

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Some things are learned when we step back a bit. And it's awesome you had yours when you took a break. You are now back and rocking it :)

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