Beg, Borrow, Steal

avatar

Okay - don't beg, nor steal - but borrowing is fine, if you ask first and are committed to returning. In this regard, trust is sometimes required and one of the things that I highly value on Hive, though I trust very few people overall.

image.png

Yesterday, @mattclarke linked a "Monster Maverick Show" video by @nealmcspadden talking more about the Splinterlands nodes. Neal confused me with Excel wizardry and made it all sound so awesome, that I decided to move up my planned purchase of a second node license and get one ASAP.

Of course, nothing comes easy and the first hurdle is, the node is expensive. But, I had a little stable coin squirreled away doing nothing, so decided to put it to work. However, the next problem was, the vouchers to buy the node license. As I have said before in a previous post, I will paraphrase a bit.

  • Presale was 2000 licenses (I bought one here)
  • We are in Tranche 1, where there are 3000 licenses on offer (~2300 left)
  • Price is $3000
  • Max discount with vouchers is 1500 dollars (500 vouchers)
  • Vouchers are riding at 80 cents each on Hive-Engine secondary market

My problem was, I only had 282 vouchers, meaning that my max discount was 846. But, vouchers are 80 cents, so since they are worth 3 dollars each in discounts, it makes sense to buy. 218 vouchers would cost ~174 dollars. This means that the license would cost me;

1500+174+282 vouchers

So, I do have a little group of Splinterlands gurus that I rely on for many bits of information and perspective, who also happen to have a few assets themselves, including vouchers.

Does anyone have 220 vouchers to spare and I will return 250 in about 11 days?


untitled.gif
untitled.gif

@azircon answered the call, fell for my charming demeanor and said Yes!

Muhahahhah....

While I am not likely to do a runner for a couple hundred dollars in vouchers, I would rather pay the 30 "interest" on the 220 to someone I know over the counter, rather than off the secondary market. This isn't the first time we have helped each other of course and for me, this has been a common practice for many Hive assets over the last 5 years. Help people, get helped - it is part of a community. But, in order to get this help, trust is required.

This is crypto: Trust no one.

But, this is crypto, understand the risks.

Anyway, Azir will get 30 vouchers in about 11 days, which is not a bad turnaround of 13% or about 400% APR on a static asset sitting idle. And for me, the cost is "zero" with the opportunity cost being the value of the vouchers - assuming 80c, that is 24 dollars. However, there is another factor to consider.

I get about 16 vouchers a day based on my stake and the node I already own, which means that if I was patient and waited, I would have the required vouchers in 14 days anyway, which would save me the 174 dollar cost of buying them now, or the 24 dollars in vouchers to pay back the debt. However, getting the second node now means increasing my drop by about 7.5 vouchers a day, so the payback period is around 3 days shorter. That is only about 15 dollars worth of extra vouchers, but it also means that is 15 in my "pocket" (cost averaging the license) and 24 in Azir's, for a total of 40. It is kind of, extra value from thin air neither of us would have got otherwise.

Now, I am pretty sure Azir would have loaned me the 220 without the interest, but I don't want something for nothing, so offered it up front anyway. If I had "fully leveraged" our relationship (not a good way to talk about relationships, but he will understand what I am getting at), that would mean 40 dollars in my pocket - but I prefer the win-win scenario by far.

image.png

So, now I have 2 node licenses.

Big deal!

Now, this is all speculative of course, but there are factors that are important to note in the future, that have a lot of unknown variables. However, while having the stables sitting is a safety net and could be used to earn on by buying the dip later, there is actually a bit of trusted stability in the nodes too, since the current low for them, assuming that there is demand to hold, is going to be 1500, the price of license with max discount using vouchers that are worth zero. But, vouchers are not currently worth zero, meaning that the node licenses will trickle in an income through voucher drops on them - currently about 7.5 a license, ~$6 worth a day.

But, the variable factors that come into play are things like the Riftwatcher pack release, where they are going to be exclusively bought with SPS. But, I just spent a lot of SPS on the node!! Yeah, but it was actually the stable I spent first, It wasn't SPS I was holding, so that doesn't count and now, that SPS is mostly out of circulation, since buying the node burned the majority of it. Now, if there is a presale of Rifwatchers, the assumption is that in order to qualify, vouchers are likely to be needed, as that is what happened with Chaos Legion.

So, now I have some vouchers coming in at about 33% the speed of what they were, meaning that if RW are released in 60 days from now, I will have about 450 extra vouchers in my wallet than I would have had with a single node license. Plus, When I bought it last night, I added a little more stable to "make sure" and took about an extra 5000 SPS, which I staked for a current return paid in SPS and voucher, of 46% APR.

And again, while node licenses are a volatile asset, they are less volatile than many others I hold and, if there is a demand, once Tranche 1 sells, the "low price" on them is the cost of Tranche 2, which is 2500 minimum. And, this is before the licenses launch and get access to additional SPS drops on them, after the current SPS airdrop on stake and CP etc ends, which should in itself, put upward pressure on price - though granted, we are entering into a pretty heavy bear market, which is set to last for the next 6 months at least.

So, as you can see, while all that really happened was me buying a Splinterlands Node License, in order for me to justify it, I had to go through a decision making process to warrant spending the 1500, plus the cost of the potential income from the 282 vouchers I already held, as well as the begging borrowing of the extras from the Azir etc to decide - yep, another would be worth it.

All of this is a calculated risk based on a whole lot of variables I have effectively zero control over, but in order to be happy with my decision, I have to be happy with my process on how it was reached. This means that "in or lose" I take responsibility for my actions and therefore, the outcomes involved.

And of course, if I do lose, I will blame @mattclarke for dropping the link, @nealmcspadden as the shill, and @azircon for enabling me.

This is crypto.


untitled.gif

Taraz
[ Gen1: Hive ]

Posted Using LeoFinance Beta



0
0
0.000
29 comments
avatar

It's good to find a friend like Azir who helps you with simple voucher without interest or benefits. It's a nice thing

0
0
0.000
avatar

There are plenty of benefits for Azir - but my reasonong is to highlight the importance of building a network of trusted people :)

0
0
0.000
avatar

It's hard to find someone who will pay you part of the vouchers for help without raising the price having interest, trust is low and you need people very close to the mission to succeed.

0
0
0.000
avatar

I will pay interest on it, but that is not the point. What is the point is, building a trusted network is important for many reasons and having that trust is valuable. Trust is very easy to break.

0
0
0.000
avatar

Early adopter will have always some advantages in everywhere in the crypto-space! Whether it is the NFTs or Coins or anything related to crypto, but those who are the prey of hype will always loose money as their money will flow to the bigger hand. So, it is the perfect time to invest in Nodes, and also the crypto market is becoming juicy nowadays !

0
0
0.000
avatar

It is getting juicy, for those who have a bit put aside for just such an occasion. We'll see in 2 years from now, who that was.

0
0
0.000
avatar

It is awesome that you have the opportunity to invest in the Nodes. Excellent work.

Even better still are the relationships that you have cultivated.

Keep up the good work.

0
0
0.000
avatar

I think the relationships are very important here, as well as in life in general. It is an interesting thing to consider, because it becomes a reference group, a source of information, the peer group support and in the bear - good people to laugh with :)

0
0
0.000
avatar

So, will you be a witness of Splinterland transactions like those on HIVE?

0
0
0.000
avatar

Not sure yet. I might try to fire up a node and give it a go or, "delegate" (not sure how this works yet in this scenario) to someone who is. I know several who are going to do this that I trust.

0
0
0.000
avatar

building a network of trusted people is amazing this increase the trust of any project and make it thrive more and more
Great Work

Posted Using LeoFinance Beta

0
0
0.000
avatar

And, it has its own personal values too - it is nice to hangout with friends :)

0
0
0.000
avatar

Yes. This is crypto-trust no one.

But it's also Hive where trust is essential to long term success. Sounds to me like you made a REALLY good use of the confluence of those two statements.

Keep working at it. I'd just really like to be able to say "I know a guy that started with nothing and built it into full retirement in less than 10 years." You are probably my very best hope of that :)

0
0
0.000
avatar

But it's also Hive where trust is essential to long term success.

Many miss this. Plus, they miss how building this network makes the experience far more fun and interesting, which keeps engagement higher, no matter what the market is doing. In the bears, the "unconnected" generally disappear, whilst those who have a social network, keep on doing what they do :)

"I know a guy that started with nothing and built it into full retirement in less than 10 years."

I will try to make it happen for you! :D

0
0
0.000
avatar

Some of us are working on a plan on how you will actually run it. I don’t think you will be interested in renting an AWS server space.

0
0
0.000
avatar

I am interested, but not sure if I will end up doing it. I am interested in the plan you come up with though :)

0
0
0.000
avatar
(Edited)

It will be just like the delegation model. A dev will rent a AWS space to run multiple nodes. You will delegate your node and get paid automatically your SPS and voucher earning, after a small cut to cover the server fees.

0
0
0.000
avatar

yep, this is what I was expecting, but wasn't sure if it would be implemented this way. Thanks :)

0
0
0.000
avatar

Yes. And it's under individual control so no barrier. These devs already run hive and hive engine witness nodes. So just additional space. It's quite simple

0
0
0.000
avatar

Watch out for the human traffickers at hivefest. You wont know it until its too late. STAY AWAY! Beware, traffickers can be women or men! They will act nice until they dont. There is human trafficking going on around this type of crypto. I have witnessed it. They literally have attempted my murder and are trying to kill me with V2K and RNM. Five years this has been happening to me, it started here, around people that are still here. Homeland security has done nothing at all, they are not here to protect us. Dont we pay them to stop shit like this? The NSA, CIA, FBI, Police and our Government has done nothing. Just like they did with the Havana Syndrome, nothing. Patriot Act my ass. The American government is completely incompetent. The NSA should be taken over by the military and contained Immediately for investigation. I bet we can get to the sources of V2K and RNM then. https://ecency.com/fyrstikken/@fairandbalanced/i-am-the-only-motherfucker-on-the-internet-pointing-to-a-direct-source-for-voice-to-skull-electronic-terrorism ..... https://ecency.com/gangstalking/@acousticpulses/electronic-terrorism-and-gaslighting--if-you-downvote-this-post-you-are-part-of-the-problem if you run into one of them you may want to immediately shoot them in the face. 187, annihilate, asphyxiate, assassinate, behead, bleed, bludgeon, boil, bomb, bone, burn, bury, butcher, cap, casket, choke, chop, club, crucify, crush, curb, decapitate, decimate, deflesh, demolish, destroy, devein, disembowel, dismember, drown, electrocute, eliminate, end, euthanize, eviscerate, execute, explode, exterminate, extinguish, finish, fry, grind, guillotine, gut, hack, hang, hit, ice, implode, incinerate, kill, liquidate, lynch, massacre, maul, microwave, mutilate, neutralize, obliterate, off, pop, poison, punnish, quarter, ruin, shank, shock, shoot, shred, skin, slay, slaughter, smoke, smother, snipe, snuff, squish, stab, strangle, stone, suffocate, suicide, SWAT, swing, terminate, torture, terrorize, whack, waste, wreck. You better fucking kill me.

0
0
0.000
avatar

Yeah someone one pointed out to me yesterday that owning a node license is equivalent to an SPS airdrop for life. Congrats on the two you own now.

0
0
0.000
avatar

It sounds like a great opportunity. I would trust Matt Clarke. I know him and he would not mislead you.

0
0
0.000
avatar

There's absolutely no begging, no not something for nothing...
Congrats on getting the nodes, license earlier than you wanted.

Posted using LeoFinance Mobile

0
0
0.000
avatar

I'm spread too thin. Too many 'Top' priorities. So far I've been content to let the opportunity slip by, but the closer we get to selling out Tranche 1, the harder it's getting. I'll have 500 vouchers in a few days and I've stopped staking my airdrops.
Gotta get at least one, surely.

0
0
0.000
avatar

I think one at the least - especially since it will be possible to delegate them to a node and then, support that node. It makes sense :)

0
0
0.000