It is January 7th, and the cryptocurrencies are booming. It is a bullmarket, Bitcoin has crossed 38,000 USD, Ethereum has crossed 1200 USD, and many currencies have exploded in value recently. StrongBlock has not been booming, and compared to Ethereum, it is at an all time low, while the Dollar value is currently around 26 USD. So, what makes me think StrongBlock might be one of the safest investments in the cryptosphere in 2021?
First of all, StrongBlock is a platform created to support nodeowners, thus strengthening the blockchains as more and more nodes run and keep track of transactions. Currently, more than 3500 Ethereum nodes are rewarded through the StrongBlock system, and much more is about to show up. Rumors are spreading that StrongBlock might implement and reward nodes for some of the following chains as well in the future; Bitcoin Cash, Bitcoin, Polkadot, EOS, Tezos. Of course, those chains are just examples, the future might not include all of them, and for sure some other chains, but the team lead by David Moss is working hard to develop the platform. It can clearly be seen that they are working hard with the protocol, and I expect exciting news, updates, and improvements to be presented within the coming weeks and months.
But, why do I consider StrongBlock to be a safe investment? And what is the definition of a safe investment?
I mentioned earlier that StrongBlock is currently at an all-time low compared to Ethereum. But, it is still at the double price in USD compared to the all time low. I believe a safe investment is about securing the Dollar value and not the Ethereum value! In other words, the main goal is to invest in something that will give you more USD by Christmas 2021, and not more Ethereum. You might not agree, but I think of it that way. And that is why I consider StrongBlock to be a safe investment. Here are the reasons!
The Strong token cannot drop that much in USD value!
There is a total of approximately 400,000 Strong tokens… in total! That is it. That is everything! And knowing that the team is taking this seriously, it means that we don’t have to worry about them leaving the ship and just crashing the platform. In other words, the platform has been made and they are working on it. Now, with a total of 400,000 tokens, the price simply cannot drop much, because then some whales would pick it all up and the price would boom. There is a simple limitation to how much it can drop in Dollar price, simply because of the number of Strong tokens available.
That does not mean that it cannot drop towards Ethereum. If Ethereum goes to 5000 USD, it might be that Strong is stuck around 25-40 USD (even though I doubt that as well), but it still means that your USD investment is safe.
The rewards leaves space for a price drop!
If you decide to buy 100 Strong tokens today, the total price would be around 2600 USD. If you start to mine with those, the current APY means that you will have earned approximately 75 new tokens in a year, leaving you with 175 Strong tokens. If the price should drop to 20 USD, you will still be in a plus way higher than any bank interest would give you!
But, that is a very negative perspective!
Let us say that you would buy 100 Strong tokens and decide to run 10 nodes (each costing 10 Strong tokens). Currently, the payout is 0,2 Strong per day per node, but this will most likely decrease for those lacking the upcoming Bronze NFT token. So, let us imagine that the payout will be lowered to 0,1 Strong per day to normal node holders. There is a 15 USD monthly fee for running a node. Let us take a look at the math.
|Price per node:||Number of nodes||Daily reward||Total rewards in 2021|
|10 Strong (260 USD)||1||0,1 per node||36,5 Strong|
|10 Strong (260 USD)||10||0,1 per node||365 Strong|
Now, this is an utterly negative perspective considering that the currently node reward is 0,2 Strong daily per node. But, if this would be true and the Strong price remains at 26 USD per token, then your Strong in one year from now will be worth 949 USD (with 1 node) and 9490 USD with ten nodes.
But, you have also had a monthly fee of 15 USD per node which should be deducted, meaning that the following would be the end results:
|Nr. of Nodes||Initital price||Monthly node fee||Ethereum fees*||Strong earned in 2021||TOTAL SPENT||EARNED IN 2021|
|1||260 USD||12x15USD (180 USD)||60 USD||36 (949 USD)||500 USD||449 USD|
|10||2600 USD||10x12x15USD (1800 USD)||600 USD||360 (9490 USD)||5000 USD||4490 USD|
- Whenever you pay the fees, claim tokens and so, you will also pay an Ethereum fee (gas fee). I have here counted with an average of 5 USD per month in gas fees for paying the monthyl node fee.
Once again… this is a negative perspective, meaning that the daily reward will be lowered to 0,1 per node (without the bronze NFT token) and with a price that remains the same. However, most people agree on the fact that the rewards will be higher, and that the price of the token will increase. Imagine if the daily reward would remain at 0,2, then you are speaking of a double reward compared to the calculations above!
However, if you are really negative, you will see that even if the price of the Strong token should drop to 15 USD, you will still be in plus one year from now. Do you get the point?
StrongBlock is working on monetizing the nodes
Did you know that MetaMask, Binance, and other services spend lots of money paying for services from Infura for keeping track of transactions and more. But, with more than 3500 Ethereum nodes available (and more coming), StrongBlock has a product that should be of interest to exchanges and other institutions due to the large amount and stability generated by this large number of nodes. That is why the team is currently working on actually monetizing the nodes, and thus creating an income with the nodes.
This will, once again, create an even greater demand for more nodes, and it will also generate income which can be used to develop the product even more, buy back Strong tokens (which again will increase the price of the token) and so much more. The money can also be used to reward node holders.
What do you think?
I feel as if StrongBlock might be one of the safest bets in the cryptosphere in 2021. It might be that Ethereum will explode and go to 5000 USD, but it might also return back to 300-400USD. Bitcoin might go to 150,000 USD, but it can also return to 8000 USD. In a world with so many uncertainties, I actually feel as if StrongBlock is a somewhat safe haven.
Of course, this is not financial advice, it is just me sharing my thoughts on a project I believe in and enjoy following!
Some people bought Strong tokens at 200 USD per piece and so. Those are in big loss right now, and that isn’t good. For them, Strong hasn’t been a joyful ride yet. But, my point here is that at its current point, it cannot go down a lot in price (like it has before). That is why I dare to call it a safe investment for 2021 considering where it is currently at!