Why to invest & hold Cloak?
• 6% return annually (through stakings) / Cloak as a value storage
Which investment yields a 6% return annually?
Interest rates are close to zero or even negative,
stock dividend yields move at around 2-4% annually (for top stocks).
Cloak offers 6% annually
All you need to do is to stake your CloakCoins.
Proportionately one receives the interest which one can either stake again, invest elsewhere or exchange for fiat.
Cloak price: 6$
Cloak investment volume: 10,000 coins
6% annually would mean 600 coins, at an average price of 6$ would mean 3,600$ profit a year.
Cloak price: 50$
6% annually would mean 600 coins, at an average price of 50$ would mean 30,000$ profit a year.
That’s already the average annual income in many industrialized countries!
Compared to a fiat investment at a bank with at most 1% interest
(more likely to be less in reality):
100$ profit per annum, with an investment of 10,000$.
Investment in fiat: 0-0.5% return at an inflation of 1.5-2% = actual outcome is negative.
Investment in stocks with dividend yield of 2-4%, after inflation 1.5-2%: profit -0.5-2%
Stocks like crypto-assets are subjects to price fluctuations.
Investment in Cloak (crypto-asset): 6% “interest/dividends” through stakings,
inflation adjusted 4-4.5%. actual profit!
• Anonymous transactions
Need to transfer over 10,000$ internationally? The bank is asking where the money comes from,
before the transaction is executed. Or even the fiscal authorities might get into it.
No problem with Cloak! International transaction can be executed anonymously (with Enigma) and
reach the receiver usually in less than a minute (Cloak Blocktime: 60s)
• PoS vs PoW
PoS - Staking is even possible on a Raspi minicomputer or any other computer that is available in the
houshold (e.g. Laptop)! Staking is possible once a day, once a week, one a month, once a year.
No stake interest will be lost!
PoW - You have to invest in expensive mining hardware that can cost thousands if not hundreds of
thousands of $. The difficulty is high, you will be not really successful with a few GPUs or one
SHA256 Miner. In most cases the power costs will kill your earnings easily.
• Transaction costs compared to BTC or LTC
The regular transactions costs of 0.01 are made up with the staking easily.
The transaction costs might be in some cases a little higher, in case many small blocks should be transferred.
Nevertheless, in most cases the staking gains offset the transaction costs and therefore virtually non-existent.
• Cloak vs BTC or LTC as a store of value
Bitcoin and Litecoin have their eligibility as store of value like gold and silver do.
In common, they also have that their mining is laborious and costly.
Additionally neither bitcoin or litecoin give their holders returns,
only price advances lead to capital gains.
Different with Cloak! Increase in value for the number of coins in position through a moderate
inflation of 6% per year. The real inflation relating to the total number of CloakCoins however is less
than 6% per year, as coins which are held on exchanges are usually not staking.
About PoS in general:
PoS staking shall contribute to generate new blocks, and hold the network stable and safe.
The more wallets are online, the more users are staking, that leads to higher security and also makes it less
likely to be hit by a 51% attack on the network. If there is a minimum contribution necessary, so
does it not only leave out the majority of investors from PoS, but in our opinion also leads to a
certain degree of centralization.
• Decentralized anonymity (Cloak) vs anonymity with Masternodes (Dash)
Cloak uses decentralized anonymization from transactions with Enigma.
Every single wallet is from the first cloak an Enigma node,
which is in competition with all the other wallets,
to help the anonymization of an transaction with Enigma.
Every wallet is equal and can to the maximum quantity of Cloak
in your wallet help with Enigma transactions.
When a request of 250 CLOAK comes in for an Enigma transaction,
all wallets that hold 250 Cloak or more can help to conceal this transaction.
The available wallets get randomly chosen, everyone has the same chance.
Dash uses Masternodes. Only these nodes, which require the user to hold
at least 1,000 Dash can be used for anonymous transactions.
That leads to a certain degree of centralization, and as a sender one has
to rely on that with this node point everything works cleanly.
To operate one Cloak Enigma node one needs a minimum of 1 Cloak
(amount invested at the moment around 6-7$, the more the better),
where as with Dash one needs a minimum of 1,000 Dash
(amount to be invested at the moment around 300,000$).
It should be difficult for many new investors in crypto to raise this sum.
Significant gains through substantial rises possible –
occasional temporary price loss should also be considered.