The evolution of the crypto space is a welcome element for every crypto investor, even as more users become aware of the intrigues of the same. Consequently, with widespread awareness comes new blockchain trends and buzzwords that are making the rounds across various media platforms. Stacking SATs is one such terminology that is a hot topic, eliciting mixed reactions amongst investors and prospects alike. But what does it mean to stack SATs?
The terminology implies steady and sustained acquisition and holding of Bitcoin value over time via various available avenues of achieving the same. It derives from the words’ Stack’, which means accumulate, and ‘SATs’, meaning Satoshis – the smallest acquirable value of Bitcoin, named after Bitcoin’s founder. The buzzword, therefore, perfectly captures the concept of slowly growing one’s worth in BTC assets to reap big from future returns. A user accumulates 100 million SATs to gain the equivalent value of one BTC, whose market value is around $19,000.
BTC physical assets, from pixabay
How did Stacking SATs become a Thing?
Despite the phrase’s first use in 2017, its mainstream appearance traces back to 2019 via a user’s Twitter feed. The phrase became public via Twitter, a timeline where said user shared a screenshot with the hashtag #stackingsats indicating their BTC earnings. However, the trend has evolved to capture the wider experience of earning any cryptocurrencies as different ambitious projects become public.
Several contributing steps then followed, which cemented its use as a blockchain terminology amongst crypto enthusiasts, as discussed here:
Reputable endorsement
The term quickly became a thing with the subsequent use by former Twitter CEO Jack Dorsey, who tweeted the same tag. Dorsey’s social standing and social media influence kickstarted a massive trend that is now an admirable milestone for the crypto industry. His endorsement of the new crypto vocabulary was a significant trendsetter that challenged cryptocurrency enthusiasts to follow up with similar tags via Twitter. The phrase quickly becomes widespread on social media, where millions of active users engage in various discourses.
Social media and public influencers
After the appearance of the term on Dorsey’s Twitter feed, many crypto influencers have used their platforms to share the same with their followers. Notably, they used the trend to promote various crypto networks by appealing to their followers to “stack sats’ with reliable providers. The public influencers on talk shows and podcasts also played a central role in establishing public awareness about the term and its applications.
What are the methods of stacking SATs?
As noted, users can accumulate crypto wealth by steadily adding such value to their wallets over time. The market movements into bearish and bullish conditions will then determine the short and long-term worth of the acquired assets. However, individuals can use some methods discussed below to acquire cryptocurrencies before leaving everything else to market fate.
Dollar-cost averaging
Investors understand the market volatility and crypto price movements evident in the blockchain space as the market adjusts to the intrigues of the new asset class. Consequently, it is right to consciously invest in such assets by carefully planning your investments and choosing the appropriate time to purchase. Dollar-cost averaging (DCA) implies the decision to subdivide your investment into smaller portions for several periodic crypto purchases. The idea is to spread your investments across different market conditions, presenting diverse investment demands and outcomes.
DCA helps crypto investors to look at the market trends and decide how much risk they’re willing to take considering the market value of particular assets. Investing in a bear market is smart, where you will likely acquire assets at lower rates. Such a step allows you to own more value at reasonable costs to your financial well-being compared to purchases made in a bull market. Despite the market downturns due to inflation across the globe, investors are still confident of earning satisfactory dividends from their assets in the future. It is particularly true for BTC stackers since the limited supply of the coin means demand will eventually return when the market regains normalcy.
Crypto cashbacks
Cashbacks are another exciting avenue for stacking on crypto value whenever investors want a long-term value-generating trick across blockchain networks. As the name suggests, the strategy involves receiving some value in corresponding cryptos back into your wallet after fulfilling some demands by the provider. The commonplace practice is where the users shop for goods or services from specific outlets and pay using their crypto coins. The network provider rewards the users a percentage of the total amount in the crypto asset spent to purchase the items as agreed.
users get cashbacks into their wallets when purchasing
However, there are some preconditions for the provider to benefit from the situation where clients receive cashback equally. There is a requirement that the users must pay for their purchases using particular checkout application programmable interfaces (APIs) designed to facilitate the experience. These APIs are only available via the provider’s web browsers as plugins or as downloadable applications installable on the user’s device. Consequently, the network enjoys more market reach and, thus, better capitalization in the long run for a small reward for everyone’s contribution. Bitcoin offers up to 9% cashback for shopping goods worth a certain value to incentivize customers who are already regular buyers at the selected stores.
Crypto mining
Crypto mining implies contributing computing power to the network demands towards creating new coins to the blockchain. The mining process requires majority consensus on solutions to particular mining algorithms, which require individual nodes to provide answers for members to vote on. The participating nodes then receive block rewards in the underlying crypto’s value for enabling smooth blockchain operations.
The strategy works on blockchain networks that use the proof of work (PoW) mining process where computational power is important. Facilitated blockchain operations include transactions where particular hash rate contributors earn a percentage of the fees. Investors can join mining pools to put their total hash rates together to solve the algorithms better or be among the majority consensus providers.
Crypto mining requires two types of computer systems to facilitate the process, whether by an individual miner or in a mining pool. First, you can use the graphics processing unit (GPU) computers which can run all types of mining software available on the market. Such systems enable flexibility since you get to work on any blockchain platform depending on your investment decisions. Alternatively, you can run an application-specific integrated circuits (ASCI) mining system if you want only to mine using a particular platform. Here, the hash rate is limited to a specific type of crypto where the system provides optimal computational power toward your mining endeavors.
Crypto Staking
Apart from mining, investors can invest in proof of stake (PoS) systems where they can earn rewards for being network validators. Here, the crypto hodlers must put forward a particular minimum stake of their coins to become eligible for election as validator nodes. All the stakers are subject to different validator-selection algorithms where few become eligible for the function. Any individual chosen can then earn platform rewards for facilitating the transactions by voting to approve and add the transactions onto the blockchain.
Benefits of stacking SATs
The discussion herein points to some advantages that investors experience when they stack SATs using different methods in detail. Before taking on the journey, every user must gain market insights to understand the market situation to avoid falling victim to market volatility. The following benefits suffice:
Passive income
Cashbacks from crypto providers offer the perfect avenue for generating passive income while going about your daily shopping ventures. Normally, you get to spend equal crypto value to acquire the items needed from different stores. However, you can choose to only shop at places where you will receive little cashback rewards that accumulate into reasonable value in time. Such cashbacks remain in your wallet for the foreseeable future, after which you decide the next investment decisions to pursue when there is enough.
Active income generation
You can also actively earn from crypto networks by heavily investing in mining equipment whose return is admirable for investors. It is a perfect strategy to earn by leveraging your time and computational resources to help sustain your chosen blockchain platform. It would help if you considered working with GPU over ASCI systems which are becoming useless against modern ASCI-resistant coins.
The best way to earn via mining is to join a mining pool which will boost your chances of being part of the hash rate contributors earning major incentives. Going it alone can be challenging, considering the superior systems owned by other participating entities. However, PoS networks allow fair competition as long as you have the crypto asset value to stake since complex systems are not necessary.
Reliable monetary alternative
The market acceptance of cryptocurrencies as an alternative hedge against inflation to gold means investors can look to the future with hope. The current status of Bitcoin, the most valuable crypto, makes it ideal for holding a value people can feel and use in daily investment needs. Despite the feared government influence in its free market influence, it is more reliable to users than gold, whose use and storage are complicated.
Remarks
The phenomenon of stacking SATs is today a mainstream idea that stems from a moment of online influencer creativity regarding crypto investments. The hand of a reputable persona such as Dorsey in making it an acceptable concept shows how such people can shape different markets. The idea is gaining Traction among crypto enthusiasts who believe in the ability of the market to outlive the current downturn in fortunes.
The piece highlights the common methods investors employ to stack SATs by active investment in mining and purchases of assets. Passive investment is also an alternative where networks allow user wallets to receive cashbacks for assets exchanged with physical goods or services at designated shops. Consequently, users who stack SATs can reap from their efforts because they accumulate value that is exchangeable and subject to growth in bullish markets.