Cardano Dan's Newsletter - Issue #83
Compound Rewards
Quote of the Day
“Compound interest is the most powerful force in the universe.”
― Albert Einstein
When you delegate ada to a stake pool, you receive staking rewards every 5 days. The total rewards for the year add up to approximately 5% over the course of the year.
But, the rewards compound because you receive them every 5 days! The ada you receive every 5 days gets automatically added to your wallet balance and that new total balance is what is used for calculations moving forward.
Let’s use an example:
You start the year with 10,000 ada
If you received 5% rewards for the whole year, you’d receive 500 ada at the end of the year
But, receiving rewards every 5 days, allows it to compound, and you end up with 512.5 at the end of the year instead
For a net result of 12.5 additional ada
This may not sound like a lot, but when you start dealing in larger numbers, it really adds up quickly.
Compound rewards is also great incentive to avoid attempts to time the market. If you get caught out of the market for a long period of time, you’re missing out on compounding rewards while you’re out of your ada investment.
Bottom line. If Einstein thought something was important, you should too. Make sure to consider compounding as you’re thinking about your investments. The creators of Cardano certainly have.
In The News
There are some interesting observations being made about correlations between the spread of the Delta variant of COVID and vaccination rates.
I don’t know what to think of this, but it’s information that you may not hear in the mainstream media, so I share it here for your consideration.
I actively sought out some good news to share with you today and was pleasantly surprised to find some!
According to a June Gallup survey, 59.2% of Americans considered themselves to be “thriving.” This is the highest ever result in over 13 years of ongoing measurement! Great to see so many people feeling like they’re doing well in life.
Cardano Updates
It was a big weekend for Cardano NFTs!
Speaking of NFTS… we were already excited about our NFT Key proposal as part of Project Catalyst Fund 5 and this has us even more excited.
Hashoshi did a great job of covering our NFT Key proposal in Crypto Over Coffee over the weekend. Make sure to check it out to get a sense of how powerful NFT Key can be!
Technical Analysis / Price Discussion
Cardano ADA put in two green days over the weekend! It’s the first time in two weeks that we can say that.
BUT, I hate to be a party pooper, they were two fairly low volume weekend days and they didn’t change the overall situation at all.
ADA is sitting on its 200D EMA as support and Bitcoin is sitting on 30K as support. If these levels are lost, the downside potential is significant.
That being said, if the bull cycle remains intact like I think it does, the upside from here is really big too.
I think the highest probability right now is that we lose these levels in a “capitulation”-like event and then reverse higher with strength in the coming days/weeks.
I could see a lot of different scenarios playing out from here. No matter which you personally expect, I wouldn’t touch this short-term market with a 10-foot pole right now.
Do you think there’s significant additional downside before we go up again?
This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.