Hello and welcome to this SPinvest post
SPinvest is a tokenized investment fund/club for all users of social blockchains. Everyone is welcome! The concept of SPinvest is to get rich slowly by using time tested methods of earning, saving and compounding long term. This lets SPinvest offer an ROI of 20% per year on SPI tokens. We encourage long term investing on and off the blockchain. We hope someday everyone will HODL some SPI tokens that can be bought directly from @spinvest are through the steem-engine are dex.steemleo exchanges.
SPinvest's long term Growth model
I am not sure if this has ever been spoken about before, most of will know that SPinvest has been set up to produce a consistent income while also adding value to the token. Get rich slowly! But we've never spoken about what long term goals are exactly how SPinvest will use market cycles to its advantage. I understand the markets enough to know that day trading is an innate skill held by few people. But i also know that we don't need to be top of the food chain to build growth!!! Crypto is our bitch and 2-3 full market cycles is possible over the next decade. I assume each cycle will take a little longer than the last each the market matures.
We all know that financial markets move in cycles, stocks, housing, PM's, oil and cryptos. Market cycles are basically booms and busts. We are not planning to play the boom and bust game, more like boom and then sit on it while the bust happens. Im talking about crypto cycles that take 4-5 years to complete. I've been around Bitcoin from 2012 and I've seen 2 of these cycles and think playing the game will be simple enough. It's not about selling at an all-time high and buying back in at the bottom. It's more like selling when we know the bubble has popped and buying back in when the price drops to 25% of the ATH. If your thinking to yourself, what is he talking about? Let me see you....
In this example we own 1 BITCOIN and the prices pops to $100,000 in 18 months time and then crashes to $80,000 when the bubble pops
When will know when the bubble has popped. People talk of a bubble 2-3 months before the actual popping. It's like it builds momentum and when the pop happens, the momentum is gone, we'll feel it.
- Sell when the bubble pops for $80,000
- Convert that into Tether, gold, stocks, p2p lending, whatever.
- What 12-18 months for the bitcoin price to drop to 20-25% of its ATH
- Buy-back in for x2-3 the amount of Bitcoin
- Wait another 18-36 months for the next bull run to rinse and repeat
Using this simple method for a decade could easily push our Bitcoin holdings into a 6 figure $ number and is not dependent on HIVE at all. It's very little work and can be as passive as just holding funding in an account earning interest while we wait for the buyback in price.
When the next proper bull runs come in 12-18 months, we will not benefit that much from HIVE as it's so damn hard to access after being powered up and a lot of our earnings come from HIVE. On the plus side, earnings cashed out will be worth more.
The SPinvest token is valued in HIVE but HIVE is priced in dollars, so am much more focused on dollar growth
Here's something that's pickle your brain a little bit.
When the price of HIVE drops and the total fund is worth less in terms of $'s, the SPI token HIVE price increases. This appears to be a good thing but it's not in terms of dollars.
When the price of HIVE moons and the total fund is worth more in terms of $'s, the SPI token HIVE prices decreases. This appears to be bad but it is good.
A SPI token valued at 1.2 HIVE is worth more in terms of $'s then a SPI token valued at 3 HIVE.
I have seen people writing in comments that it's great watching the SPI token go up in HIVE value and i think it needs to be clear that as the price increase's in HIVE, it is decreasing in dollars.
Leave your feedback, do you think this model is doable?