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RE: TenX - The Crypto Currency Debit Card Launches on Bittrex Today
I saw some math that said you would need about $40 billion in transactions for an annual return equal to the current value of tokens. Formula: (Annual worldwide spend * .5%) / total tokens (200 MM) * # of tokens held. So if you have 1000 tokens, the formula might look like this:
40 billion * .5% = 200 million --> 200 million / 200 million = 1. So, $1 per token held. The current price is ~$1.
In 2014, Americans spent $5 TRILLION on credit cards. If the crypto cap continues to grow (currently ~$100B), $40 billion in transactions a year is not infeasible.
Thank you @superskillz for this very elaborate answer.
The math looks solid and its very helpful :)
It looks like it could take some time to reach 40 billion though, so it might not be the best value investment at this moment.
There is also the volatility of the markets to take into account when using these debit cards.
When buying something (lets say a cup of coffee) the card will withdraw a certain amount of lets say BTC. This debit transaction will happen immediately and in real time. Which means that you end up paying the going exchange rate of BTC, that could mean huge uncertainties as to the actual price of the cup of coffee.