Proof of stake ethereum reward
In dividend investing compound interest is the holy grail. It is when you invest your dividends to buy even more shares which pay out even more in dividends. This was facilitated by a mechanism known as DRIP dividend reinvestment program. It will not be hard to simulate this mechanism in a smart contract on Ethereum allowing compound interest for holders of ETH.
Compound interest can make anybody a millionaire or a billionaire. In a sense, these ETH tokens could become exponentially more valuable than they are today. For this reason developers and stakeholders will have every reason to expand the pie, continue to grow Ethereum, and maintain it. The holy grail of crypto assets are the assets which pay the equivalent or interest or dividend rewards.
Proof of Stake entices individuals not to cash out, not to sell, and to simply acquire as many tokens as they can over time, to generate compound interest. The key questions will be what is the threshold for being able to stake? What will the process of staking look like and how secure is it from hacks? What will the interest be and whether it is static or variable rate?
In any case the main reason most people would want out of Ethereum is to diversify their wealth but even that might not be necessary if Ethereum establishes itself as unstoppable. The fact that many corporations, banks, and other entities are involved in the Ethereum alliance looks interesting but it can proof of stake ethereum reward produce a long term result where the biggest stakeholders are the Ethereum Alliance and the original founders, crowdsale holders, and other early stakeholders have sold out into fiat chasing the quick buck.
What would you do if you have to choose between being a lifetime stakeholder via Proof of Stake and selling into fiat for the quick buck? I would assume most people proof of stake ethereum reward a price per ETH which they'd decide enough is enough and sell their entire stash? If you do then what price would that be and if you never intend to completely sell and choose to go to the path seeking compound interest then why wouldn't you?
I read some of the initial stuff on Ethereum a few months back and picked up some ETH, but have been busy with work so haven't gotten a chance to read up on the proof of stake ethereum reward developments with Casper. Proof of stake ethereum reward am hoping things calm down this weekend! Also state capital gains taxes can push it even higher. Proof of stake ethereum reward can get your capital gains taxes proof of stake ethereum reward be lower but you have to hire an accountant who can track all your gains and losses from trading going back potentially for years.
This is not easy to do with the current tools. I was looking for info on Casper's interest payout. Do you know if you have to obtain a masternode in order to receive that interest payment? And what is the payout frequency? I believe you do but I'm proof of stake ethereum reward certain on any of this because it's not here yet and proof of stake ethereum reward need to see it on a test network to know for sure.
If Proof of Stake Casper is a success there may be no reason to cash out into fiat any more than is necessary to self sustain In a sense, these ETH tokens could become exponentially more valuable than they are today. Conclusion The holy grail of crypto assets are the assets which pay the equivalent or interest or dividend rewards. Authors get paid when people like you upvote their post. This almost makes me want to buy more just reading this! So the rich get richer.
When will it start, and where can I stake the eth?