The US election has has had an immediate effect on the crypto market with Bitcoin reaching an all-time high.
Kiwi’s have seen their Bitcoin investments increase 113.59% over the past year with 29.08% increase in the last month.
(as at 11th November 2024)
That’s a massive gain and there are plenty of Kiwis that are very happy, but it’s also an investment that can have large swings from making good profits to dropping and making losses too.
What About Mining Crypto
You can use your money to invest in crypto and that’s what lot’s of Kiwis do including myself, but you can also mine crypto and in many ways this is a safer and easier long-term investment option.
I use a mining plan with BeepX.
BeepX Coin is a cloud based cryptocurrency mining company.
Each member pays a monthly subscription for just USD$50 with the initial subscription being USD$199 (the first $50 subscription is included)
Then every monthly subscription purchases another mining unit for two years, so every month the speed of accumulating the coins increases to a maximum speed of 24 mining units (when the oldest units begin to expire).
Every day for that period BeepCoins (BPC) are mined for you and delivered to your account to save or spend in a registered Beep Xtra store.
This is not a “get rich quick” scheme, but is a business that mines crypto and is a very good way to build an investment over time.
You can use this link to have a look in more detail.
Crypto Mining vs KiwiSaver
Firstly, let me say that there are no guarantees with either KiwiSaver or crypto mining, but we can crunch some numbers to provide a comparison.
Kiwisaver Assumptions;
Age 55, salary $100k throughout the 10 year period, using a balanced fund with 3% employee and 3% employer input, ignoring tax credit and using the Sorted online calculation tools.
Total input ………$NZ60,000
Estimated balance $NZ71,500
BeepX coin mining, Assumptions,
Base subscription ……$US150 plus $US50/month ($US600pa)
Start of year one, three, five, seven and nine include a hosted mining boost of $US425 giving an additional 3,500 coins per year for 2 years, five times with the last year allowing for 12 months only.
Coins from the subscription over 10 years;
Year 1 1000 Year 2 2700 Year 3+ 3,650×8 total 32,500
Coins from the hosted mining boost (7000 x 4.5) 31.500
Total coins accumulated (Approx) 63,000
Total subscription input $US6,150 or $NZ10,250
Boosters input $US2,125 or $NZ 3,550
Total in NZ dollars input $NZ13,800
Fund balance @various prices $US1.00 x 1.67 for NZ equivalent.
@$US15c $NZ0.25c $15.750
@$US0.50 $NZ0.75 $47,250
@$US1.50 $NZ2.50 $157,500
To match the Kiwisaver input we need to multiply the mining input by 4.3! This can be done easily using a higher level of hash speed mining. For a similar input coins would total around 312,000!
Note that today’s coin price is $US15c so I have been really conservative on the price in 10 years time. The CTO calculates that the price will settle between $US4 and $US10 per coin.
Note also that Kiwisaver funds are locked in until age 65 whereas Crypto funds are always available to you.
