Of course this statement doesn't make any sense.
You can always take the $25 fiat, invest it in crypto, and now you are "winning"
However, if you take a look at my specific situation, my statement starts to make sense.
I live in Southern California, so earning $25 per hour is well within the realm of possibility.
I also have enough Hive Power to where an hour of reading and commenting, especially if done through the leo interface will earn me at least 1USD in crypto - even after the splits with the curators.
Real world math says that $25USD will not be converted to crypto
The fees to get the income into the cryptoverse would dwindle it bunches, plus there's lots of "real world" uses that I can use that $25 for.
$25 is enough for gas, for a couple days worth of food, for a kid pair of shoes, for a starbucks drive thru, for some books or even a toy.
5.29 per gallon is today's "cheap" price
And those are investments too.
Enough to where I will not earn $25 fiat, (minus the taxes) and convert them to crypto.
It might be different if I was earning extra $25 fiat, above and beyond my usual earnings
And it came at a time where all my bills were paid.
But, if there is an electric bill in the mail box, you best believe I am paying that before investing $25 into crypto.
Basically, the $25 would be spent.
Now let's say I earn $1 USD worth of crypto.
There is NO WAY, I am going to transfer that out. The fees would make it negligible, and 1USD would do nothing for my lifesytle.
I can't even buy something at the dollar store. Mostly because it is not the 1.25 store, but also because I would not be able to afford the tax.
So the crypto is going to stay put, probably in the form of 20% earning HBD.
After 5 years, it will be worth 2.70
How much is that fiat worth after 5 years? Well, nothing. Its long gone. I can argue that the (insert purchase here) was an investment in my future... but its gone.
Those crypto numbers are not very impressive either.
$2.70 won't even get you a Rising Star card pack.
But let's say I earn $25 a day for 365 days straight.
Guess what, I still live in Southern California.
$25 per day for 365 would net me $9,125. I can almost cover three mortgage payments with that amount. It is still an easily spendable amount of fiat. In fact, if that's all I earned, I would be well in the poverty level.
But $1 a day for 365 days?
I started with that $1 crypto dollar, and added 30 per month, with a 20% interest rate thanks to our HBD. After 1 year, you have
$402.71
You aren't driving a lambo. But you do have some wealth.
And what if you let those $402, sit... for 5 years. What happens then?
One year of earning, plus 5 years of sitting at 20% interest rate. $1085
Remember, the fiat has been long spent by now.
Let's get crazy, and let that one year of earning $1USD per day, and let it sit for 30 years all the while earning the 20% interest rate.
$154,626.13
Do you feel wealthy yet?
Do you think you can earn $1 per day for 365 and then let it sit?
I understand and can faintly hear all the "no's"
But Metzli, what about inflation?
But Metzli, what if the blockchain fails?
But Metzli, what if the HBD stops paying a high interest rate.
That is why you have to keep paying attention, and diversify, and move your money when you personally think it is ready to be moved.
My only true point is that ZERO investment always equals ZERO wealth building.