Neo staking is profitable?? Lets do the math

in bitcoin •  6 years ago  (edited)

So the smart economy from China or ethereum killer is a proof-of-stake and called NEO, some people consider Neo somewhat profitable rewarding the investor with free GAS as a reward for holding NEO but is it profitable?? Or even worth it?? Lets see:

1 NEO costs currently 74.58$ on Binance and 1 GAS costs 24.18$ on Binance as well, 1 NEO can make 0.0960 currently GAS annually which is 2.31072$ in a year, if the average Joe invests 10,000$ into NEO he gets 134 NEO which can make 19.6 GAS annually or 473.928$ which is 1.2984$ daily or 38.953$ a month so its not that bad BUT lets compare it with mining with an Antminer S9 ASIC mining bitcoin.

So lets compare, if Joe invests 10,000$ into an Antminer S9 with 14TH/S with PSU that costs 1373$ so dividing 10,000$ by 1373$ you will get 7 Antminer S9s (you still have money left) capable of getting around 98TH/S so annually we'll get ( I calculated electricity, pool fees, price of Antminer, price of Bitcoin, other factors) will get you $12,576.64 annually so (e.i: 0.27 US average, 1% pool fee, 1373$, 8991.72, other factors (difficulty etc..)).

So which is better 12,576.64$ or 473.928$ annually?? However, I know bitcoin mining and proof of stake with NEO have their own pros and cons but I'm pro bitcoin mining because mining bitcoin gives you bitcoin the number #1 cryptocurrency and expected to be 250k$ in the year 2022 (Not accurate but maybe possible)
http://fortune.com/2018/04/13/tim-draper-bitcoin-price-prediction-tesla-skype-dfj/
And if mining is not profitable anymore you can cut loss by selling those S9s, BUT its still not good because if cryptocurrencies crash both antminers, bitcoin, and NEO will become worthless and mining difficulty might change the the profit those antminers make.

So what do you think?? This is based on my research and due diligence please due yours before jumping to conclusions!!
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I think you must take into consideration that mining difficulty goes up, so the mining profitability goes down. And NEO will probably grow faster than BTC. Still the only reason I find GAS important for NEO is that people tend to hold NEO longer because of that. I'm not impressed by you return you get out of getting GAS.

I agree for one year with 1 NEO you get 20$ only thats not much profitable

Let me know what you think!!

I think it is hard to say, but I have put one fifth of my money into neo for now

Its really great project!! Don't you agree

It's pretty good, yes; bit slow right now though

You have a minor grammatical mistake in the following sentence:

However, I know bitcoin mining and proof of stake with NEO have there own pros and cons but I'm pro bitcoin mining because mining bitcoin gives you bitcoin the number #1 cryptocurrency and expected to be 250k$ in the year 2022 (Not accurate but maybe possible).
It should be their own instead of there own.