I have a plan for my daughters a portion of my daughters college. She's 4 so that will be in 2028. Today I purchased 5 ZenHashlet Solo's from GAWminer. Hashlets are 1 MH/s Cloudminers costing about $20.95 and are paid out in BTC daily for those not familiar. These mine on one of various different multipools, I use the Zenpool because they are the most profitable. They have been averaging about 0.0005611525 BTC ($.266875) per day after maintenance costs. You can set these up in a mater of minutes and they can be set to reinvest the mining profits automatically toward more miners at a 5% discount. Now assuming the pool can retain it it $.26 profit per unit each day and the price of a hashlet remains the same and is readily available, you will have 507 in a years time producing $131.82 Daily in BTC or $48,118 per year. If you cash out half of that and invest it cautiously and retain the other half strategically in crypto you should be able to have a nice chunk of money for college set aside. 14 years worth for me I'm hoping she can go to the University of her choice, and come out of it completely debt free and as a graduation present have a mining farm that will hopefully still be producing a nice little profit for he to start out with. Anyone interested in Hashlets let me know and I'll be happy to try and answer any questions.
Perhaps, one day we can offer you a choice; USD, Bitcoin or that one with "reliable long-term appreciating value." Or would you prefer to have your DNotes deposited in one of our family of CR.I.S.Ps. What is that? Stay tuned.
That sounds like a great plan. It is easy to forget that if a little is added to your savings everyday it amounts to something every year. After many years it becomes quite sizable. An attractive compound effect is very favorable over the long-term. I just hope that your assumptions will continue to hold true. Sometimes, there are many things beyond one's control. As a good investment practice, it is a good idea not to put all your investment (all eggs) in one basket.
As part of an overall investment portfolio, it is a good investment strategy to allocate a small percentage (5% to 10%) to be invested in high risk/higher return situations. Unfortunately, this is the area where the most mistakes are made.
Selecting high risk candidates is extremely difficult. There are always more bad selections than good selections. Of course, you want to pick the right ones. Otherwise instead of getting ahead, you fall behind.
It is extremely important to take your time, be as objective as you can, and continue to narrow down your selections. Dont let your emotion get the better part of you. Excitement is not a guarantee of high returns. Dont buy into the claim that this is a once in a life time investment opportunity. The same person could be making the same claim on a different investment the following week.
If you have a choice, give preference to the ones that already has a demonstrated track record consistent with their claims or missions. Most businesses failed to deliver what they represented in their business plan.
If you are fortunate enough, getting in on ground floor opportunities can make a huge difference. Let us take a closer look at Bitcoin and DNotes value appreciation tracks:
Bitcoin:01-03-09 Genesis block established
10-05-09 Exchange Rate published $1 = 1,309.03 BTC
05-22-10 Pizza purchased with 10,000 BTC = $25
or $1 = 400 BTC
09-12-13 $132.59 = 1 BTC (exactly one year ago)
09-12-14 $471.71 = 1 BTC (Today)
DNotes:02-18-14 Genesis block established
02-26-14 1st Day on Exchange closed at $1 = 400 DNotes
Once it settled (30 days) $1 = 2,000 DNotes
09-12-14 $1 = 100 DNotes (Today)
This is just to demonstrate that picking the right investment and investing at the right time can make a huge difference.
Bitcoin is not going away. It will remain as the backbone of our industry for years to come and as demand grows its value will increase. For long term investors Bitcoin is a good store of value. However, it is already priced to perfection with limited potential for near-term price appreciation. DNotes could be a better choice. Stay tuned for my next blog.
My budget for higher risk/return investments is very limited and I have been investing in crypto currencies for over a year. I've spent some money investing in mining equipment as well. The conclusion I've come to is that investing in mining equipment is medium risk low reward. The risk in purchasing mining equipment to me is losing the opportunity to invest.
The reason being is as follows. If I invest $100 in mining equipment, I can only earn back what the mining community as a whole dictates. The price of a coin is directly tied to the hashrate and vice verse, in such a way that mining different coins is almost pointless. If that mining equipment earns my $100 back in 6 months to 1 year, the better bet would be to invest that $100 in a coin. Unless you're mining to save a specific coin, because it's difficult to purchase that coin, I've always come to the same conclusion to buy the coin and not the mining equipment.