Earning the first dollar in BCH
So lately I have started posting on Read.Cash and when I earned nearly $5 in Bitcoin Cash (BCH) in one single post, I was ecstatic. As you can probably tell, I like to collect all types of cryptocurrencies and learn more about them in the process (Leo, HIVE, IFARM, AMPL...and now BCH). Gotta catch 'em all! The below sums it up pretty much for BCH:
One of the major benefits to BCH is that it's very easy to send without incurring high transaction fees (unlike BTC or ETH) which makes sense why Read.Cash / Noise.Cash would adopt BCH.
I was planning to accumulate enough BCH (#Club1BCH?) to send to an exchange and maybe swap it for BTC until I read a comment somewhere (I can't remember if it was on Noise.Cash) that what you can do is actually send the BCH to Celsius to earn a small interest. I quickly opened up my Celsius app (which I signed up a couple of weeks back because of their promotion), lo and behold:
I was always looking at BTC savings accounts that I forget there are other coins out there. This APY is higher than what's on offer for BTC (for international clients which is only 3.51%. Yay! So I will be able to earn passive BCH while I sleep. This is awesome.
Power of Compounding
So after earning the passive BCH income by depositing your BCH, is it time to take that out and spend it? Well it depends on your personal circumstances. Some people need to use the BCH they've earned on Read or Noise to put food on the table. But if there is no urgent need to take money out, consider leaving that additional income (in BCH) in Celsius so you can compound on the additional BCH as well.
So let's imagine a scenario if I was able to earn say $100 or 0.0982 BCH per month from actively posting on Read and Noise. If I consistently put that into the wallet to compound at a 4.51% APY, after depositing $24,000 in 20 years, I will have a total of $33,955 in BCH, which means earning an interest of $9,955. This seems ok, not particularly amazing, given how crazy prices and yields in crypto seem to get sometimes. This result is assuming the price of BCH stays at the current price and doesn't change. Using the Celsius calculator (you can play around with it here):
But what if the price of BCH increase as well over the 20 years? Let's toggle that slider to 10%...Ok, this is a little bit crazy. $365K after depositing $100 per month for 20 years in BCH earning an interest of $340K. I guess that is the power of compounding an appreciating asset. Note: I think the 10% Predicted Asset Appreciation Rate is per year but please correct me if I'm wrong because I can't find it anywhere on the Celsius website.
Comparing to FIAT
We can't really compare this to the fiat system. Simply due to the fact that for the above calculation to work, we need to compound an appreciating asset which we know for certain fiat is not. At the rate that banks are giving out in Australia at the moment (hint: it's around 0.7-1%) which you'll have to jump through many hoops to unlock (minimum deposit monthly, making minimum transactions etc) I just cannot be bothered.
Do I want to get $365K by the end of 20 years from a cost base of $24K? Yes please. How do I get there? My plan right now is to try and earn as much as I can from Read.Cash and Noise.Cash by participating and producing interesting content. I'll routinely deposit that BCH (gotta love the low transaction fees) into Celsius (or other similar lending platforms) and let it compound until the end of times. 20 years is a long time, and I'm not even sure if BCH will be around but right now, I'm willing to take that risk.
How you're going with your BCH journey? What are you planning to do with all the BCH you have?
Until then, keep stacking!
Disclaimer: Not financial advice