The Tsunami Growth of Futures
The Ever Growing Balance
People forget that with every Compound — which you control, your Balance eventually grows to the point that the Claim amount, despite a lowered Daily Percentage Yield, is so outstandingly good, that nothing else can really touch it.
Yet, Investors look at the new Daily Variable Yield, and Freak the F Out. They scream it’s all going down to zero, even though there’s a near zero chance of that happening. Bertha herself would have to go to zero.
In a world in search of competitive yield there’s no way I see that this doomsday scenario exists.
Short Memories
The Variable Yield was instituted in order to eventually renounce the contract — remember? Having a Fixed Yield with no access to change it could have unforeseen consequences similar to the end of the Drip Network, and all its copycat offspring.
The stablecoin BUSD used for Futures was swapped to BNB because of regulatory scrutiny of stablecoins, as well as the discontinuation of BUSD itself — remember?
In a sea of not-a-stablecoin, every token out there has a variability in price in relation to the dollar. Starting the new Futures variable rate yield, with BNB at a relatively low price level, just prior to the bull run was just about as safe as Bankteller could have made it.
Seeing the Future
Disgruntled crypto investors aside, if you have the eyes to see it we are about to see the biggest BNB all time high (ATH) within the next year to 2 years. This alone will top us back to the beloved 0.5% Daily Yield.
Both Elephant and Trunk will go up like the rocketships they were designed to be, and everyone who sold Elephant early to chase the Bitcoin they really should have bought back in December 2022 at $17k are going to gnash their teeth, and rend their blouses as Elephant does its predicted, and predictable 10–100x.
There’s nothing else I see doing that.
Not Bitcoin, not Ethereum, not Solana, not XRP.
Major tokens with Spot ETFs are just going to be the footballs in the game of the Investing Gods, because while the major financial institutions make money on appreciating assets, what they really make money on is the Trading Fees of investment products.
Buying and Selling.
Back when the first spot Gold ETF was released back in November 2004, it also had similar expectations of a moonshot. And while the Gold ETF did well, it was never close to a 10x, or even a 5x;
In the land of crypto, doing a 2.45x over the span of 7 years is considered meager gains. I see the same fate for Bitcoin.
Why?
Because Bitcoin Index Funds already exist.
To the common investor, and even the institutional investor, they’ll see zero difference between the GBTC index fund they currently hold in their Fidelity accounts, and any of the 11 flavors of spot ETF that were just approved by the SEC.
The ones who wanted exposure to Bitcoin already have it.
And those with Bitcoin in a decentralized wallet, unlike those in a stock ETF account, can trade outside the business hours restricted for the brand spanking new BTC ETFs.
On any given day, the Finance Gods may look at the string of Stop Loss orders, and decide its about time to generate some revenue. A few well-placed Spot Bitcoin ETF Sells, and while the stops all get hit, the auto sells will start, and the Finance Gods make bank on their pre-ordered Shorts on top of the trading fees.
Double whammy.
At least with Bitcoin in your Decentralized (DEX) wallet you can still sell on the outside-of-business-hours Saturday after a blood red Friday.
Why would anyone want to own the spot BTC ETFs over Bitcoin itself? Helloooo! Any hardcore-die-hard-not-your-keys-not-your-crypto investors still out there?
Futures, on the other hand…;)
Let’s talk Futures, shall we. Let’s run the numbers using Crypto Stu’s updated Futures Calculator 4.0. Let’s reduce the Daily Yield down to 0.25% and the amount invested to be $10k.
Starting today, January 10th, 2024, using the 21/7 Strategy, you’ll make your first Claim on February 6th of $187.69. Let’s look at the amount each year thereafter:
- February 6th, 2024: $187.69
- February 4th, 2025: $346.24
- February 4th, 2026: $591.36
- February 2nd, 2027: $970.31
- February 1st, 2028: $1,365.32
- January 30th, 2029: $2,073.66
- January 29th, 2030: $3,123.85
- January 28th, 2031: $4,343.03
- January 27th, 2032: $5,549.20
- January 25th, 2033: $6,682.08
Your monthly Claims continue to go up, ballooning from $187.69 per month to $6,682 per month nine years later. Most likely in this upcoming bull run the yield percentage will go back to its 0.5% per day, so the amounts listed can likely be doubled.
Nothing really compares to the Daily Yield you can get in Futures, especially not in Traditional Finance (Tradfi).
Everything else that is vaguely similar to Futures in crypto simply doesn’t have the liquidity, community, nor the brains of Bankteller to predict their continued existence.
With a variable daily yield at least you’ll still get to your ultimate $1M balance, it just might take a tad bit longer.
If it’s not Sustainable it ain’t Sh*t
There’s a reason folks will flock to Futures. Even, and especially with a variable yield built in.
The name of that is Sustainability.
In order to create a durable daily yield product, something that can survive the Tests of Time, SEC scrutability, BNB price fluctuating, and Investor’s emotion-driven dumps, Variable Yield was the obvious horse trade.
We still get to enjoy a daily yield, occasionally diminished, but I think ultimately bouncing back up to its proposed 0.5% daily yield. And that yield, compoundable at any time we wish, still will make the difference in making an outstanding return.
I always choose to have a percentage of something, rather than a lot of nothing. And a Daily Compoundable Yield can turn into a lot of something.
Nine years later
Nine years later, even at a reduced 0.25% daily yield, using the 21/7 strategy, that $187 per month Claim balloons to $6,682 per month. That initial $10k Balance grows to $761,061.50.
Your so-called diminished 0.25% daily yield is now calculated against a 7,510% larger Balance.
What do you know that does that?
I do.
Futures does that.
Elephant Money
Save on transaction taxes by adding a Partner: https://elephant.money/partner.html?ref=0xA1d91d85667a09e4Aa59D1b3f38106c5E4B8bDBb
In the “The HERD: A Partner Network” box click on the partner tab, and then add my address as your partner: 0xA1d91d85667a09e4Aa59D1b3f38106c5E4B8bDBb
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If you’d like to find out more about the details of the projects I am in, and how to participate, please go here: https://cryptozoa.medium.com/passive-income-projects-eafd4ee0a4aa
Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research, or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article.