If and when I go all in the risks have to be reduced as it is not a gamble I am prepared to take.
A question I was asked today by one of my old clients was when are you going to be able to live off your crypto earnings? He knows about my interest in crypto as he has asked for advice before and bought some alt coins which he has now staked. This question I have asked myself many times before and have always come to the same conclusion each time. The longer you can stay out from going all in earning off what you have staked the better it is for the long term prospects of actually doing just this.
Looking at my portfolio many of the coins are down 75% from their all time highs and it is actually the best time to calculate if going all in earning off your crypto is feasible or not. If you were calculating late last year then you would have got a false sense of security which could be a tragic miscalculation on your part.
Lets say you needed $4000 per month and were making in the region of $2000 monthly then I would say to be safe you would need 3 x the stake/investment just to be on the safe side as one never knows if prices can drop even further than they already have. You can never have enough stake and this is why I would be reluctant to go all in unless I was forced into that situation.
The figures don't lie and why the need for a bigger diverse portfolio with as much stake is the safest and best option. Someone living off HIVE at $1 is going to have a total different experience compared to a $5 HIVE which is rather obvious. In the same context who says that $1 is not going to 40c and then the idea of a steady income each month went out the window. that would mean you would need 250% more stake just to match what you were earning at $1.
The answer I gave my client was this is still way too early and to give it another 5 years minimum and reassess as things change very quickly. If one could do a 3x on the stake they currently have in 5 years along with with entire crypto market cap rising then that could be a game changer.
I see the opportunity arising within 5 years to make this feasible due to what we have in our very own stable coin HBD. The 20% offered is what makes this a genuine possibility and HIVE would need to gain in some serious value affording those with HIVE stake to convert to HBD. There are no shortcuts in crypto unless you get lucky along the way catching a major pump.
The exciting part though is this is still a strong possibility of being able to earn a living by what you have worked for. 10 years off your life is not a big chunk considering what this offers. Many people go and study getting a degree or start a business to eventually get to a point finances are not an issue each month. There is no ways they would have done sufficiently well to sit back and live off what they have done within a 10 year time frame like what we have here in crypto.
My advice to anyone contemplating this is to think realistically what you need each month and gauge where you are from there. Never take the best scenarios with pricing and always go for the worst case scenario to be on the safe side. Try and stay out of going all in for as long as possible as each month earning FIAT is another month your crypto has grown. Who knows what new opportunities open up that we haven't even seen yet.