Topic: Earn passive income with ethereum 2.0 - page 2. (Read 445 times)

POS make dev and old members a way to make fast earning. It represents the easiest solution to the problem of fees that most currencies suffer from, but it does not mean the desired decentralization.

Profit will not be easy, you need about 32 Ether, which is not a small amount.

Other than that, all types of stamping involve little risk or dependence on a third party.

Yeah. By definition of passive income, You will gain profit without a risk of losing you original investment(ETH). Trading can't be consider as passive income because there's no guarantee that you will get profit consistently. Staking and Lending are the current method available right now to earn passive income via Ethereum. Where do you stake your ETH and what is the APR you are getting on it??

I don’t agree with you that trading is not the only way to earn passive income with Ethereum trading is one of the riskiest aspects of the cryptocurrency investment option as one can lose all your funds because of bad trading decisions.

I still think staking is the most lucrative and less risky investment in cryptocurrency so far.

There will be sure price action as there are whales that will move the market from time to time. That's for sure no matter what happens, there's no assurance that it will only stay to one price.
Assuming that it's already on the go, there's just the confidence that there's going to more favor to the holders and stakers but never forget, this is cryptocurrencies.

This transition from PoW to PoS is a significant milestone towards becoming influential towards the #1 race in the cryptocurrency space. I don't think it will ever beat Bitcoin, but ETH is easily one of the best. This is one reason why ETH is continuously rising in price, and it seems that it's not that far from reaching higher prices like, let's say $10k.

Understandably, APY would change because of the fluctuations and all the inevitable losses that could happen while staking. That's just the risk towards it. This makes me feel that I need to buy more ETH.

There is a major difference when you own a mining farm to mint POW initially you are taking the risk and spending money to maintain the network and even after that you need to sell the minted coins to maintain the farm and they cannot hoard the coins indefinitely unlike staking where you are holding the coins and there is no resources to pay and you can hold them indefinitely and have the absolute governing power.

Anyone who is willing to spend money can set up a farm and compete with other mining farms in POW, can you absolutely say that with POS, new entrants even with money and willing to spend can farm as a main node or will it be restricted for a selected few, a new world of centralized cryptocurrency.

But to a certain degree the possibility for everyone to stake might already have been priced in right now. People buy Ethereum now in anticipation to soon be able to stake their Ethereum with the 2.0 upgrade. I think there will still be some good price action, but probably not as much as many might think. Most of the investors now buy with the plan to once stake it or even dump some of it as we get closer to the release of staking to the public.

The whole idea of Ethereum staking is good and at the moment the APY is OK to me but can not compare with that of other coins offering stake and farming, the only disadvantage is that since ethereum staking come with a lock period what happen when the price change when the coin is Still locked in the staking pool.

That's for sure, while there's not that much attention that's being put into staking ethereum. It's just for now but once it's fully rolling and the entire announcement is official about staking.
You'll see that bunch of holders will come out of their caves and will start to stake their Ethereum on those different platforms or pools.

Agreed and remember if there would be a locking period for the ethereum that already staked in the network. The price change can affect the capital value that being used to stake ethereum.
It's not always profitable to stake the major coins. is not it APY that offered by cake on stable coin pool was bigger than near?

The current rate on Stakewise is not attractive compared to other farming and staking sites, but since we are talking about Ethereum, the second most popular coin in the market, it will still attract more investors to pool their Ethereum, I'm sure whales will take this opportunity to earn more , not really for us small-time investors.

well it's impossible to make the apy stay still unless your coin infinite supply, which will affect supply and demand. imo a decrease on apy with an increase of price is what most people seek, so it's not a huge problem if the project has solid foundation.

Although it's going to be a good passive income in the future, the APY shall change overtime due to the demand just like the other coins that have been into staking.
As start, the APY seems to be good but I guess as time passes by, it'll change and might decrease.

https://stakehound.com/blog-post/fireblocks-eth-2-key-management-incident/
"June 22 2021 — On the 2nd of May 2021, we were informed by one of our custody providers, Fireblocks, that 38,178 of our staked Ethereum may have been rendered inaccessible because of a failure by Fireblocks to secure the cryptographic keys as they were required to do."

I also like to give links to articles
If you use non-official services, then think carefully about whether you should trust them with coins that could make you a millionaire.

Why POS makes the system centralized in your opinion? Because rich people will own majority of "shares/ stock/ equity" = voting power? Isn't it even worse with POW, where rich people with resources can set mining farm in most profitable location all around the globe, negotiate lower hardware prices, negotiate lower energy price = can mine cheaper than others with less money? With POS you need 32 ETH and you can mine as efficient as a hodler with 100k ETH (profit from 1 ETH will be constant).

You can stake Ethereum but you will need to use a third party service to do it unless you are very computer savvy and have a good home computer with reliable electricity and internet 24/7. Every outage means that you get slashed and lose money. It's a lot easier to stake NEAR in your wallet for 11% APY.

The SEC has been clarifying that if you solicit funds from investors and if buyers bought into funds hoping to profit from deployment of some technology then that is a security. This will definitely make Ethereum a security.

The move to PoS means that those with the greatest amounts will have the "shares/ stock/ equity" of Ethereum locked up for a fixed income, similar to dividends. With PoS, the transformation of Ethereum into a corporation will be complete. Ethereum can no longer claim to be a software stack to build smart contracts on. It will be defined by a set of rich stakers providing infrastructure for a business and profiting from the rent they receive on the usage of that infrastructure.

This just begs the question that while Vitalik and co. always knew that what they were promising (smart contracts) is only possible in a centralized system like this, why'd they galvanize the community with the promise of decentralization. Like, all of this community was shown a vision of a decentralized, permissionless compute-on-the-blockchain system. Vitalik is too smart to not realize that this was not possible. Ultimately, things have moved to a centralized system where you have rich rent seekers being paid for an apparent service that was supposed to be owned by everybody.

Was this intentional or not is something that the people at SEC will be scratching their heads to understand.

The last few weeks have been so exciting in the entire crypto currency space, With ethereum achieving one of it major upgrade with the London hard fork which is the latest series of development which sees to the transition of the ethereum network from proof of work to proof of stake model Which includes, EIP-1559 change in the ethereum transaction fees market.

Ethe2 gives token holders the ability to stake their ethereum in a wide range of ways and earn passive income through one of the options are.

1: ehtereum holders with at list 32 Ethereum can operate a validator node to verify transactions on the network.

To help achieve this several options including staking pool, and centralized exchange staking has been adopted to aid Ether2 token holders access to earn income while they sleep.
More info here:
https://cointelegraph.com/news/altcoin-roundup-hodling-ethereum-here-s-how-and-where-to-stake-your-eth