From One Investor to Another

From One Investor to Another Written by Community member Vedicvirtuoso

I’m a musician, and in June 2016 I began releasing album recordings on Spotify, Apple Music, and all the other streaming services. Over the coming months, I continued to see an increasing number of listeners and total plays of all my recordings. I put a lot of my own time and money into buying recording equipment, software, and then recording and editing over 200 tracks on 12 albums.

Thankfully, all of my efforts have been well worth it, and I am now averaging just over $1000 a month in passive income from my ongoing royalty payments. I began taking my profits and investing in the stock market, and increasing my savings. Soon enough, the increased volatility of crypto caught my eye, and I dived deep into learning about cryptocurriencies. I recognized the risks involved, so I started very slowly and increased my positions only as I learned more and gained confidence in my crypto picks.

After a couple months, I noticed a trend that many new coins were using a Proof of Stake model. As I looked deeper into staking as a means of generating passive income, my eyes lit up. I had just spent the last 18 months or so enjoying the significant benefits of adding another stream of passive income, and I began to search long and hard for some of the best staking opportunities available to me.

My main criteria in my search were the following: 1) finding a project with long term, lasting potential (I want to create passive income streams that last a really long time, after all); 2) a project with significant income potential (obviously, as that’s the main reason why most of us are here right now); 3) has a real use-case, or a utility coin; and 4) hopefully market agnostic (so its value isn’t based on overall market movements with bitcoin, but rather on its fundamental value that it brings to the table).

As I began my search, and looked at a number of projects, one project began to rise to the top, and checked off all the boxes in my criteria list: Blocknet.

If you haven’t heard of Blocknet yet, it’s time to take notice. 2018 is going to be a big year.

I’d like to outline some of the key points why I consider Blocknet to be one of the absolute best investments in 2018 and the years to follow.

Blocknet — What Is It?

We’re all familiar with the revolutionary capabilities of the blockchain. A number of new possibilities are now available to us. But it’s becoming a complex space with thousands of various tokens. We need to start working together, instead of diverging further and further apart. What Blocknet is offering is the next evolutionary step for blockchain technology.

The Blocknet is creating an Internet of Blockchains.

Blocknet is an interoperable protocol that is capable of providing a number of functions, including connecting blockchains (think Ethereum or Neo smart contracts running on bitcoin, or creating micro-services by combining multiple blockchains). One of the flagship offerings that Blocknet’s protocol can facilitate are completely trustless atomic swaps.

Is There A Need for Blocknet?

Hell yeah. Blocknet is bringing synergy to the entire blockchain ecosystem.

Up until now, we’ve been functioning in a black and white environment. With the Blocknet, we’re upgrading to a high definition, plasma screen, color experience. Now, instead of blockchains creating their own isolated environments, we will begin to see a highly evolved and complex network of many blockchains working synergistically together.

Let’s take a closer look at our current system of centralized exchanges.

Houston, we have a problem.

Whether you’ve been a long-time crypto hodler, or a complete noob looking to buy your first altcoin, we’ve all been at the mercy of centralized exchanges. Yes, all of crypto — decentralized by design — is completely dependent on centralized exchanges. Exchange hacks, sudden and unexplained account freezes, restricting access to new registered users, and restricting users from specific countries…I can say with absolute certainty that we’ve all been affected. Personally, I’ve had problems with every single exchange that I’ve used.

Decentralized exchanges will be giving the power back to the people, and the BlocknetDX is poised to lead the way. Worried about a potential exchange hack and losing your coins? It won’t be an issue with BlocknetDX. You have complete control of your coins in your own wallet, with your private keys. A trustless trading environment.

BlocknetDX requires no registrations or signups, so there’s no concern of individuals being locked out for any reason. Everyone in the world is welcome to trade on the BlocknetDX.

We’ve seen centralized exchanges crash time and time again during periods of peak trading volumes. Anyone else ready to experience smooth trading with no downtime? BlocknetDX trades happen on-chain, so as long as the blockchains are up and running, your trades will go through.

BlocknetDX will provide the most secure trading environment available.

Long Term, Lasting Potential?

OK, so hopefully you’re starting to see some potential here. But will it last?

Honestly, if you believe there is a future for blockchain technology, there will be a future for the Blocknet. Our need for interoperability will only increase over time. We need decentralized trading environments. We need protocols with the capability of connecting blockchains, creating an internet of blockchains.

With a number of partnerships already in place — most notably with Bitfinex/Ethfinex, 0x, Bitbay, Duality Blockchain Solutions (Dynamic & Sequence), and Bitnation — there’s a very bright future in sight.

What’s the Community Like?

First of all, the developers — as well as the majority of the project supporters — are anti- hype. This is extremely refreshing to see in the crypto space. So many projects have announcements for their upcoming announcements. Or hint at possible partnerships with major corporations that are unfounded. There’s a huge amount of coins that have a valuation based on only a white paper and hype.

Blocknet is filled with a community of investors that appreciate stability over uncertainty, substance over hype, and long-term potential over making a quick buck on risky investments. The developers are more focused on coding than shilling their coin.

My kind of people.

What About Marketing? Why Haven’t I Heard of Blocknet Yet?

See above. The developers have been focused on building out the protocol and the decentralized exchange for the last three years. Their priority has been on the tech rather than increasing the number of people speculating on the price fluctuations of the BLOCK token.

However, Blocknet is on the precipice of a major shift in strategy. As the BlocknetDX nears its full release, a major marketing strategy is beginning to take shape.

You may not have heard of VSA Partners, but I’m sure you’ve seen their work. They named IBM’s Watson, designed Obama’s campaign logo, and have led marketing campaigns for a number of Fortune 500 companies (Facebook, McDonald’s, Nike, GE, Harley Davidson, Proctor & Gamble). VSA is the firm that designed and developed BlocknetDX’s front-end UI/UX experience, and they’re being retained to play a major role with the marketing strategy moving forward.

Marketing is the single missing puzzle piece in Blocknet’s ultimate success — big exposure in front of the entire crypto space. As potential investors, this is one of the hidden gems that we’re on the lookout for: a project that has huge upside potential but hasn’t hit the mainstream market yet. Congratulations, you’re reading about Blocknet before the majority of all other crypto investors. Get in at the beginning of something truly revolutionary.

Market Agnostic or Will it Crash in a Bear Market?

This is one of the primary reasons why I’m so heavily invested in Blocknet. Consider our current reality: all crypto exchanges make money, whether we’re in a bear market or a bull market. Have you been to Las Vegas? Monte Carlo? Macau? All the casinos are making millions and billions of dollars because the house always wins. That’s what exchanges have going for them: whether you make money or lose money, they will always take their percentage.

So how about participating on the other side of that equation? What if you could make money from crypto traders at any time, whether the market goes up, down, or sideways?

Welcome to the future of crypto trading. With BlocknetDX, each executed trade will pay a small fee. 100% of all those trading fees will be paid out to block holders (to those running nodes and staking their block). An exchange by the people, for the people. This is the potential for those holding BLOCK: an opportunity to make passive income in trading fees and staking or node rewards 24 hours a day, 365 days a week. Each trade that happens will pay the trading fee, and the exchange automatically converts it into BLOCK as a market buy on the DX, and that amount is sent to the nodes/stakers processing the transaction. This will put a constant buy pressure on the price of BLOCK, and as you might imagine, this could mean that holding BLOCK very well could become a sort-of safe haven during downtimes in the crypto market. It’s possible that the token price will very steadily continue to rise during all market conditions.

Income Potential

Let’s face it, this is why we’re all here. Let’s dive a little deeper into some projections of what kind of returns you might expect. Of course, I’m not a financial advisor — please do your own research and take caution when investing into any project.

BLOCK is a Proof of Stake coin with Service Nodes (masternodes require 5000 BLOCK in the node), so there are two revenue streams available to block holders: 1) staking and node rewards, and 2) trading fee rewards and fees generated from the protocol.

Please check out bit.ly/block-roi for a real-time look at current staking and node return rates.

As a Proof of Stake coin, one new BLOCK is created roughly every minute, so a constant inflation rate. As a staking and node reward, 0.7 of this BLOCK is rewarded to a node holder, and 0.3 BLOCK is sent to a staker. Rewards are given in a weighted randomized distribution, so those who are staking larger amounts of coins will receive rewards more frequently than those who are staking smaller amounts.

At the time of this writing, the network is currently seeing about a 13% annual ROI for staking and just over 18% annual return for node holders. (Again, please refer to the BLOCK ROI chart above for the most up-to-date rates.) So if you’re holding about $50,000 worth of BLOCK, you can expect to see about $6,500/year, or just over $540/ month in staking rewards (before considering potential appreciation in value). And for those running a service node with 5000 BLOCK, you can expect an annual return of about 900 additional BLOCK per year, or about 75 BLOCK/month.

In addition, we will be seeing trading fees from the decentralized exchange. Take the following formula to dig into some projections:

Let x be the volume per day in USD, and n be the number of service nodes.

Each BLOCK held in a service node will generate:

0.7((x0.0025)/n)/5000 USD per day

Annually:

0.7(365((x*0.0025)/n)/5000) USD per year

Let’s plug in some hypothetical numbers, using the Annual formula.

We’re currently seeing a range of 30 to 70 billion dollars in trading volume per day, so let’s use $30B as our baseline daily volume and see what our returns might be if Blocknet maintains a 1% total market share of volume, 2.5% total market share, and 5% market share. Currently, there are about 400 service nodes, so let’s assume an additional 50 are added to the network over the coming months, so we’ll use 450 nodes in our equation below.

If BlocknetDX achieves 1% total market volume: 0.7(365((300,000,000*0.0025)/450)/5000)

$85.17 per year for each BLOCK owned

$425,833.33 per year in revenue for each service node (5000 BLOCK)

If BlocknetDX achieves 2.5% total market volume: 0.7(365((750,000,000*0.0025)/450)/5000)

$212.92 per year for each BLOCK owned

$1,064,583.33 per year in revenue for each service node (5000 BLOCK)

If BlocknetDX achieves 5% total market volume: 0.7(365((1,500,000,000*0.0025)/450)/5000)

$425.83 per year for each BLOCK owned

$2,129,166.67 per year in revenue for each service node (5000 BLOCK)

Then, you can assume BLOCK’s price valuation follows some sort of Price-to-Earnings ratio. In the case of most tech companies, you’ll see a number from 10 to 100. Thus, it’s just multiplying the annual earnings by the estimated P/E ratio. So let’s add a P/E ratio of 10 (mild speculation), and also add in the increased value from the natural inflation rate (currently 18% in the case of node rewards).

What follows is a total estimated value of each BLOCK once we add in the P/E ratio and the 18% inflation rate:

If BlocknetDX achieves 1% market volume:

Each BLOCK would be worth an estimated $1,005.01

Each service node (5000 BLOCK) would be worth an estimated $5,025,030.00

If BlocknetDX achieves 2.5% market volume:

Each BLOCK would be worth an estimated $2,512.46

Each service node (5000 BLOCK) would be worth an estimated $12,562,280.00

If BlocknetDX achieves 5% market volume:

Each BLOCK would be worth an estimated $5,024.79

Each service node (5000 BLOCK) would be worth an estimated $25,123,970.00

Wow! Did you get all that??

Hopefully you can start to see what kind of earnings potential we have available to us. Of course, this is all dependent on Blocknet releasing an exchange that gains some traction in the marketplace, but I think that you can see throughout this entire article that we have a number of reasons to believe that Blocknet will be quite successful in the years to come.

What Does the Future of Blocknet Look Like? Written by Community member Vedicvirtuoso

Very bright.

If this is the first time you’ve come across Blocknet, consider yourself lucky to have found it before it’s reached critical mass. A year from now we will all be very familiar with the project.

But don’t take my word for it. Check it out for yourself, and see what you think. Welcome to the Internet of Blockchains.

(Note — this was written by a community member Vedicvirtuoso without any input from the Blocknet core team and represents his views)

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Websites https://blocknet.co / https://blocknetprotocol.com/
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