In today’s Exponential Investor…
- Bye for three weeks
- Passively stacking sats
- What if one penny today is £1 tomorrow?
Before I crack on with today’s Exponential Investor, I just wanted to let you know I’ll be away for the next three weeks.
You’ll get tomorrow’s podcast where you’ll hear me as usual. But then for three weeks Exponential Investor will be in the capable hands of my co-editor, Kit Winder, and a number of our other editors here at Southbank Investment Research.
I’ll be off because there’s another little Volkering about to enter the world. Being a good husband and dad, I’m taking three weeks to help the little guy settle in, my wife recover and our firstborn adjust to his little world getting rocked!
Conveniently this also falls right as the Euros kicks into the elimination games too. For what it’s worth, I equally support England and Holland – one being my adopted nation, the other being my heritage nation.
If they meet at all in the next couple of weeks, well I’ll cross that bridge if need be!
Nonetheless, the next time you’ll hear from me will be some time in the week beginning 19 July. Don’t miss me too much…
Now on to something a little more interesting (for you)…
Passively stacking sats
About a month ago I introduced you to a London Stock Exchange-listed company, Mode Global Holdings (LSE:MODE). That essay can be found here.
It has a crypto wallet app that makes buying bitcoin incredibly easy.
In fact, I’d dare say it’s the easiest app I’ve ever used. No other wallet I’ve found has been as easy to set up and start buying bitcoin.
I’ve been involved with bitcoin for over a decade. I’ve seen the worst of these kinds of apps and now I think, at least so far, the best.
Nonetheless, since I discovered Mode’s app, I’ve been testing it out. More specifically I’ve been testing out its “Bitcoin Jar”.
The Bitcoin Jar is a part of the app where you can deposit bitcoin (currently needs to be more than 0.01 BTC) and earn interest on your deposit.
What makes this really cool is that you earn interest in bitcoin.
What makes this even more cool is that you can watch in real time the “sats” stacking up in your Bitcoin Jar. You don’t have to do anything, just passively watch your sats stack in front of your eyes.
A satoshi is the smallest denomination of bitcoin. It is equivalent to 0.00000001 BTC. So when I say “stacking sats” I’m taking about adding to your bitcoin holding by adding fractions of whole bitcoin, satoshis, sats.
In the Mode app, you can watch the sats ticking over constantly. Just watching your bitcoin holdings increase second by second. It’s a little entrancing, a little addictive and makes me want to put more bitcoin (sats) into my jar to watch my sats stack faster!
So… I did.
I bought the dip this week, and then funnelled my purchase into my Bitcoin Jar in my Mode app. And then, after it cleared to my jar, my sats started stacking faster.
What a rush!
Now I will say, watching your sats tick up is one thing, but then you see the fiat-converted values of the sats and it’s a slightly different feeling.
You see 0.00000001 BTC, or 1 satoshi (sat), right now is roughly equivalent to 0.00024366 pence.
That’s right, a fraction of a penny.
In fact, one penny would actually be 0.00000041 BTC, or 41 sats.
So while stacking sats is fun, you might not think it’s completely worth seeing your sats stacking up just one sat at a time…
You might think…
There are 86,400 seconds in a day. Let’s say it takes 100 seconds to earn 1 sat in interest. That means you could earn 864 sats in a day. Over the course of a year that would mean 315,360 sats.
Awesome! But when you convert it into the current fiat currency-converted price of bitcoin (around £24,366 per one BTC), that works out to just £76.84 in bitcoin interest.
Err, it’s great, much better than the bank. But not a game changer.
However, that’s based on the assumption of bitcoin’s price staying the same.
What happens if bitcoin’s fiat-converted price rises? What if bitcoin becomes a globally decentralised reserve currency? What if it goes on to be the world’s biggest financial system where the price of a sat also skyrockets?
I’m talking about a future where 1 sat isn’t a fraction of a penny, but tens of pence… or even where a sat is worth a pound.
All of a sudden, your sat balance ticking over becomes more and more attractive.
If a sat was worth a whole penny, then 315,360 sats in interest a year would be worth £3,153 to you.
If a sat was 10 pence, then your 315,360 sats per year would be equivalent to £31,536 for you. And of course if it’s compounding the whole time, well you’re starting to get the picture.
Stacking sats in my view is a good idea. You don’t need loads of money to make it happen. But if you’re switched on to some of the “new money” ways to build your long-term wealth, then you can build some wealth that down the track might come to surprise you.
It might seem like not much today, stacking little sats, but if the crypto revolution plays out how I believe over the coming years, it could turn into a small fortune.
Editor, Exponential Investor