If you've been actively involved in the crypto community the past year, you have probably heard people talking about staking. But, what is it and should you care?
Staking involves the process of locking a certain amount of specific coins away in order to earn interest over time. It is considered a safer way to earn, but obviously there are no guarantees of safety in crypto.
A person will stake based on a very specific project and according to that project's rules. Because of the popularity of staking, many exchanges now offer this for locking certain coins, and either offer daily, weekly, monthly, or yearly interest based on the requirements. Some programs allow a person to draw interest when they wish, and some will allow a person to close a contract on staking anytime they wish without a penalty.
Staking can also involve a process by which an initial coin launch gives away a certain number of coins in trade for someone staking another coin. As an example, someone can offer proof that they own 1 BTC in their wallet, and receive 100,000 "x" coin equivalent to the value that coin's creators see fit. It is a way of establishing a value to the people who follow a new project, getting them involved in communities, and also increasing a coin's value by reducing the supply that is available.
Does it matter? Well, yeah duh. But, is staking for everyone? Naw. It is a personal choice like everything in crypto. For me personally, I see the value in platforms like this, where a person can earn some crypto by doing something that is meaningful to their time, like writing. I am hoping to see more platforms like this open up. Let's face it, none of us are going to get rich writing blogs this way, but it is a beautiful start to what can become a flourishing new economy.
One way or the other, there's a lot at "stake" and I intended that pun. Oh yeah!
Thanks for reading
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Gordon Freeman Out.
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