Simplifying Hive Bookkeeping
A few weeks back, I stumbled upon a method of generating cash from holding a crypto position. I have decided to stop Core Number Compounding for now. You can read more about it in previous posts. The method works well when there is market movement. It doesn't work so well when the market is trading sideways. However, my decision to stop was not because CNC does not work. Rather, I have decided to stop because I had a competing interest that required the cash.
Prior to trying Core Number Compounding, I had decided to wait until after the CRO token went mainnet to upgrade my Crypto.com debit card to the Royal Indigo. This was important to me because I am trying to get away from relying on credit cards so much. I previously had the Indigo card. I enjoyed the perks, including the 3% cash back on purchases. It was not challenging to earn CRO tokens at that card level. I wanted to get back the perks I had lost.
In order to upgrade my card stake, I needed $4000 worth of CRO tokens, which I was using partly for Core Number Compounding and partly deposited in Earn for interest. I contacted Support. They made the change for me. Now I am back to where I was last year.
Once I did that, I was left with roughly $2500 worth of Bitcoin. I had intended to do Core Number Compounding with Bitcoin only. However, I saw that the Crypto.com DeFi staking was paying around 60% in returns. I gave it some thought and decided to cash out my BTC and buy CRO for staking. The return on CRO staking is currently around 40% today. It will continue to go down to around 20%. I am comfortable with a 20% return in the long-run. CRO is a long play for me. I can count on the rate for the next 10 years, according to the announcements.
In the end, all my holdings that were in Core Number Compounding are now going into CRO. I have been calculating. Yesterday, CRO staking it 1 Billion tokens. Interest rates were around 50%. Extrapolating a bit, I think Crypto.com can subsidize the validator rewards at 20% for up to 2.5 Billion staked tokens. Beyond that, I think we might see the rewards dip below 20%.
Given these numbers, having 2.5 Billion CRO tokens staked, out of the 30 Billion total, that's 8% of the available tokens. However, let's not forget that about 5 Billion tokens are being held for rewards over the next 10 years. So, in reality, about 25% of tokens would be staked in DeFi at the targeted 20% interest rate. That is 5 Billion held by Crypto.com and 2.5 Billion staked in DeFi wallets. That doesn't count tokens staked for the debit cards. However, the debit card rewards are paid out from market purchases. That is, the interest and cash back that Crypto.com pays for debit card perks come from buybacks rather than a pool of tokens.
Given these numbers and the stated goal of 10Xing the user numbers, I am optimistic about the price of CRO. That's why it made sense to liquidate my Core Number Compounding Bitcoin. I intend to build up as large of a CRO position as I can reasonably afford. This is going to be helped by maxing out card staking perks, dollar cost averaging, and DeFi staking earnings. My expectation is that the $40K Icy White card will meet me faster than I can save to go meet it. I think a modest $0.50 CRO would do the trick.