I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
As far the basic economic formula, if you are getting the same token or coin as staking reward every week or month then the price of that coin is bound to fall because the coins will always be listed for sell and there would be more sellers than buyers or more supply than demand resulting in decrease in value. Only high volume, high transaction, highly used, high revenue generating coins like ethereum or btc can negate this effect because they are actually doing business and generating revenue everyday. For other coins this model do not seem sustainable. 
Topic: Crypto passive income - a bubble? - page 5. (Read 981 times)
I don't think there is anything wrong with crypto passive income obtained from staking, yield farming, lending etc. Mining is cool but personally I prefer staking and masternode, since there is no need for energy. I'm not against POW algorithm, but I prefer POS. New advancements come with time, we should embrace them rather than entirely castigate. I do however like the solid points given by OP, it's very educative, thanks.
Many of us will also embrace the ETH POS once its finalized by the team. Because ETH is a utility token and is very much needed for each transactions made I guess it will still be profitable to stake ETH.
Staking will only be good if the project will have a real usecase for the community and to its blockchain. If you planing to stake a coin, you better pick the right one or you'd just spend time staking without profit. Exchange tokens I think are worth.
I don't think there is anything wrong with crypto passive income obtained from staking, yield farming, lending etc. Mining is cool but personally I prefer staking and masternode, since there is no need for energy. I'm not against POW algorithm, but I prefer POS. New advancements come with time, we should embrace them rather than entirely castigate. I do however like the solid points given by OP, it's very educative, thanks.
I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
If you are saying staking (talking about pos over here) and crypto lending are scams, then you are wrong. There are scam services, but those activities itself isn't scam.Like you can do p2p lending and take interest from your borrower. Trust is a factor over here. But then, there are services that say that you will lend them money and then they will give a "too good to be true" interest rate. Those offer usually comes without any collateral and you will highly likely get scammed. For staking, you should probably google about stake scam. You will find some neat articles explaining everything.
The concept of passive income is popular because all of us would like to have something from nothing. Just put some money in the bank and live from profits but it's not that easy!
To take profit you need to own something that other people want. A stakable coin is so volatile that you can buy it one day and start staking and a month later it will lose value and you will lose your staking income and your investment.
At this point it's still too risky. If a big coin like BTC or ETH switched to PoS it could work but shitcoins with PoS will be shitcoins that produce promises instead of income.
To take profit you need to own something that other people want. A stakable coin is so volatile that you can buy it one day and start staking and a month later it will lose value and you will lose your staking income and your investment.
At this point it's still too risky. If a big coin like BTC or ETH switched to PoS it could work but shitcoins with PoS will be shitcoins that produce promises instead of income.
I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
You are locking the amount for particular time if you wanted to receive the rewards it will make the demand of that token or coin to increase if people get interested on that project so it is win situation for the team but it is likely less chance for this to happen.So don't look for passive income when it comes to crypto market, just hold and sell when the price is getting peak. legendary
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Though I am not a cryptocurrency miner, but what I learn from this forum that nowadays mining is not as profitable as before. So maybe you will not much profit at the end of the mining. But it's sure maybe you will not lose after calculation. ( But don't fall into cloud mining shady things. maybe it shows you much profitable but in the end, you will not get anything.)
Personally I don't think staking is much profitable. But when you hold a coins and if the coin's has any staking feature then you should take the advantage. Just like (Something is better the Nothing). But don't fall into some Ponzi scheme trap. maybe they promise you a good ROI of about 1-5% per day. but at the end, you will earn 0 exactly.
Personally I don't think staking is much profitable. But when you hold a coins and if the coin's has any staking feature then you should take the advantage. Just like (Something is better the Nothing). But don't fall into some Ponzi scheme trap. maybe they promise you a good ROI of about 1-5% per day. but at the end, you will earn 0 exactly.
I have been staking 3 tokens so far which I earn only a few coins but its going to be consolidated. It's still going to be compared to mining since you need investment in staking which the cost is almost the same too. Of course, if you want to earn more, you have to invest more in collateral. What I do is that the profit I get is what I also buy for the tokens to stake increasing the amount to earn in the future.
I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
These methods of staking, lending etc to get modest interest rates are unlikely to be ending any time soon as these are relatively new and are analogous to interest rates from banks, except here the returns are higher but it's fine because it balances out the higher risks.
Mining as you say requires investment first, here, the simplicity of staking and lending all together is that all you do is taking a higher risk but don't expend on infrastructure so the returns unlike mining aren't delayed. Now, when one looks at the two options it becomes obvious which one to take, even if one believes is a short-term option...
Only times show if the idea behind Proof of Stake concept is correct. There is no cryptocurrency that is widely used and it uses PoS algorithm. The first would be Ethereum if Ethereum fails with it, we will know that the way was wrong and we need to find another way or back to Bitcoin´s PoW.
Currently, the crypto ecosystem is not ideal for the concept of passive income. Many projects with the theme of passive income fail because the coins they get from staking will always be sold, which causes a constant drop in prices.
Anybody looking for passive income in crypto might end up falling for this investment scam that claim paying using crypto. Crypto staking might be profitable but it also boil down to the price of the coin you stake on at the end. Staking on MB8 coin has thought me a great lesson. It is always good to make a hay when the sunshine
Between mining and staking I prefer mining because it's more profitable than staking, most staking coins only give up to 15% ROI annually, mining is more profitable than POS coins, right now I plan on adding more graphics card to my mining rigs
Mining is obviuosly more profitable than staking and those other stuff but there are some new coins in the market that offers 50 - 88 % of APR for staking, I don't know if it will survive in the long run maybe it is just temporary. Yes, it is getting popular there are platforms that offers staking and they will lock your coins for a certain period. Sometimes it makes you feel unsafe unlike if you have your own mining rig you have the control of everything. I guess they sacrifice greater risk on staking.
Maybe people shouldn't really focus on the passive income thing as much as they do right now, there is really no reason why they should be dealing with the income type of "I will sleep and nap and do nothing while my money makes money".
I understand that many of the super rich did became wealthy that way, the more money you have the more money you make by simply having that money, Jeff Bezos is literally doing nothing different than just 5 months ago yet he worths close to 200 billion last I checked, no human in the entire race of humanity has worked enough in 5 month span to make almost 100 billion dollars, but how did he do it? Well he owns amazon stock and that's it, he doesn't even "have" that money.
So, maybe we should try to contribute to the community to make more profit instead of just expect our money to make money.
I understand that many of the super rich did became wealthy that way, the more money you have the more money you make by simply having that money, Jeff Bezos is literally doing nothing different than just 5 months ago yet he worths close to 200 billion last I checked, no human in the entire race of humanity has worked enough in 5 month span to make almost 100 billion dollars, but how did he do it? Well he owns amazon stock and that's it, he doesn't even "have" that money.
So, maybe we should try to contribute to the community to make more profit instead of just expect our money to make money.
It all depends from way of passive income, some of them really may be bubble/ponzi others are legit
I thought that when it is truly decentralized, then it can´t be the Ponzi scheme because it the whole profit doesn´t come to creators right? But it could be a pyramid scheme, just like many "financial" Dapps on Tron network, where you send Trons and you get a daily interest.
What people call passive income comes with dangers. People should evaluate the risk before jumping into dubious yield farming methods. I get it that DeFi may allow exiting any time the user of the platform wishes, yet there is a risk as well when liquidity will be low and withdrawals won't be able to process. At some point, DeFi platforms won't be able to pay withdrawals especially during a mass exodus of "lenders". Perhaps they will provide vast interest with their balancers but when a token's price will be going to zero this won't mean anything.
A certain part of the altcoin trap is in a bubble right now and it won't end well.
A certain part of the altcoin trap is in a bubble right now and it won't end well.
Sometimes i thinks like that too. In Proof of Work coin, the miner need to buy some mining rigs such ASIC or GPU to mine the coin, the capital fund is on the devices. On the other hand, in Proof of Stake coin, the staker only need to buy the coin and stake them using their wallet on the pc, the capital fund is on the coin. So, both of the coins are requiring some capital funds.
I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
I am seeing the same thing and I share your opinion, it seems that slowly but surely the composition of investors in the market is changing, just a few years ago the majority of those that invested in this market were looking to get rich really quickly and as such icos became incredibly popular, but now we are seeing a change in people seem to be more interested in receiving passive income, there is just one small problem and that is that scammers are going to notice the change and begin to offer coins and services like that and we know how that story ends. 
My analysis of staking on projects is to make investors or anyone who holds their token or coin hold it longer by getting results according to the pool and the amount they are staking. Maybe in my opinion what is sacrificed is when staking sometimes the price goes up and we can't sell it because the staking is still ongoing.
That's the thing that needed to address more carefully learning to let go while the value is really rising up then
buy back when it fall back to generate more coins.
But the timing is really hard for this staking project most of the time you buy it high and sell it low so instead
to earned you are losing your investment.
You need a deeper knowledge in order to make a good timing and to have fruitful journey supporting the project
and earned using the passive features of the coin.
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