Next diversification

Author's note: This article is part of an ongoing blog about my adventures in the world of alternate currencies.

My attempt to run the most recent version of the Next NRS client was an abysmal failure. That trusty start bat file which had worked for many previous NRS versions couldn't do it for the last one. Once again, my Nextcoins were stuck and unavailable to me.

Fortunately, Offspring came to the rescue with the release of its updated version. I was able to download, install and run it and it's working like a charm.

So far.

I have decided it's time to spread my Next holdings around. It's also time to delegate the forging to others who actually have time to update their wallet every other day.

On the forging side there is a pooled forging site called the NXT Blacksmith Workshop. It's a simple concept. You send them your NXT and they add it to their forging power. When they forge a coin it gets divided up among all the stakeholders in proportion to their piece of the pie. The total account size is around 350,000 NXT. If your contribution was 35,000 NXT, then every time the account forged one NXT, you would get 0.1 NXT added to your account.

In terms of total amount of NXT earned, you're not going to do any better pooling than you would going it alone, since NXT is a proof of stake cryptocoin. The forging return on NXT is 0.1 percent regardless of the size of your account.

The main advantage of pooling, however, is that you do not have to be the one running your wallet client twenty-four hours a day. Nor do you have to be the one having to deal with it if your client should quit working, having to take precious time out of your day yet again to update to the latest greatest version. Not to mention that the people running the NXT Blacksmith Workshop know what they're doing enough to be quite confident that when the wallet holding everyone's pooled NXT is on, it's really on and forging.

Today I sent the NXT Blacksmith Workshop a small amount of NXT, and in a day or two, once the initial 1440 confirmations are reached, those coins will get added to the overall forging power. I will probably send more once that happens. In the mean time, I'm hoping to forge a block or two with my new Offspring client.

Thanks to the recent DGEX IPO, forging is not the only way to earn some NXT. I can buy shares in the company for 125 NXT each. These shares will begin paying out dividends in both BTC and NXT beginning March 17. I suspect the reward will be better than forging, though once the shares start trading publicly there is the risk of them losing value. My plan is to buy a few initially, and once I'm confident in the buying process, will buy more, and then hold them.

Cryptsy just announced on Twitter that it has added Next to its markets. I can now buy and sell NXT on Cryptsy. This means I can also store some there, as Cryptsy also works well as a multi-coin mega wallet system. So off to Cryptsy go a few more of my NXT. If I ever get to the point where I'm regularly spending Next, I may just use Cryptsy as my main wallet since the fees are the same as with Offspring or any other Next wallet.

My main objective is I want to keep my Next in various places so that in the event that one location fails I won't lose everything. I also don't want to rely on my PC wallet client anymore, though I will probably keep some NXT in it. But at least if I suddenly can't make my PC client work, I at least can still access and send out my coins.

Diversification is a wise strategy for risky investing of any kind and I have come to the conclusion that this is especially true for NXT.

I hope that Next can add to its momentum by stabilizing its wallet client software. My prediction is that when it does both its value and adoption rate will skyrocket. Next has a lot going for it, and I'm so glad I jumped in early.

Devtome Writers

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