Topic: Is running DASH masternode more profitable than HODLING bitcoin? - page 2. (Read 332 times)

Everything you do is equally at risk for the long-term, make plans in advance so that one does not regret it in the future.
Bitcoin nor DASH does anyone know future developments they will be down or up? If up yes profit, if down yes loss.
So should really choose this risk if you want to get your passive profit.

The answer is certainty.

Will the price of Bitcoin go beyond the 17k mark in the future - yes
Will investing Bitcoin  to aquire Dash be a good idea then the answer is No.

How to start a passive income?
Wait and hold your existing Bitcoin till the price reaches to your desired level. Then sell some of them to buy 1000 Dash and start your passive income.

If you are running dash masternode right now, you will always receive interest from your masternode regularly. and compared with holding bitcoin this will be more profitable because you know you will get free dash coin from your masternode as a reward by running your masternode. If the price of dash fall and then your total investment in the dash masternode will also fall at the same time. That can happen anytime, dude.
As far as I know, based on the how now the development of dash and this coin looks good in the long term.

If you are holding bitcoin and you can't calculate how much you will receive your money in bitcoin. Read more statistic about dash here https://masternodes.pro/stats/dash/statistics you will see your yearly income too.
But If you are buying bitcoin at 9k and then it will be pumping above 15k, and that means bitcoin is much more profitable.

Many people predict bitcoin will increase next year. If you are confused between Bitcoin HODL or Running DASH Masternode. You can divide the funds you have to buy bitcoin and hold it and then part of it is used for Masternode DASH because it will more clearly be able to generate passive income. both of these options will benefit you and may be better.

That's what I find so risky with this whole passive income thing and crypto. A coin can easily lose 5% in a day... sometimes 10-15%, so how worthwhile is that 5% yearly when a daily change can wipe out all rewards?

It'd be like buying a bank CD that fluctuated in prices and by the time you come home from the bank it's already lost money, and will take several years of passive income just to make up for that 15 min. drive home.

So if the OP likes Dash and thinks it'll do well, sure, buy it. But forget the passive income part of it, that shouldn't factor into the decision, it's just icing on the cake if things go well. And meaningless if things go poorly.

Extreme example: At its ATH, a Dash masternode was around 1-1.5M. Now that same masternode is worth around 72K. Do you think any holders who bought at ATH prices are thinking, "It's still great, I get $3500 a year in rewards!"

It can be more profitable but it's also much more dangerous. The price of Dash does not only depend on its own performance but on the performance of Bitcoin. Running a masternode is a big investment and you will be holding a lot of Dash so you can be happy for a time because the rewards from masternode will be good but if the coins that you're holding in collateral lose value you'll take a big hit.

 It's possible to lose more money in 1 day than the masternode fees gave you in a year just because dash price took a hit following a dump on Bitcoin.

I'm not sure where you got your information, but it needs some correcting:

Dash lead developer was not hired to create this crypto project. Dash lead developer Evan Duffield created Xcoin --> Darkcoin --> Dash mainly as a side project (he had a fulltime paying job at the time)
together with a partner named Internet Ape, because he could not get his suggestions about privacy enhancement implemented in Bitcoin (i suspect Bitcoin developers were not ready to hard fork their Bitcoin
project to also include privacy).

Link : https://www.dash.org/forum/threads/the-birth-of-darkcoin.162/

Orginally a foundation was created early on in the hope that would get enough donations to fund developers and provide support for his project, but it turned out this was not really working so well. Evan Duffield then
came up with the brilliant idea of splitting the blockreward between miners (45%), masternodes (45%) and a decentralized budget (10%). Next step was finding a way to govern that budget in a
decentralized way, so he came up with the idea of giving voting power to masternodes.

The community fully supported this from the start, there was no pissed off community at all about the masternode concept. Dash Community members even started to develop shared masternode services,
so people could profit from masternode rewards, without each needing the full 1000 Dash collateral (they would pool that 1000 Dash together).
Dash current core development team gets their funding directly from Dash decentralized budget, as do many other Dash projects. Evan Duffield has moved on to another Dash project and is no longer
a member of the Dash Core Team.

With regards to orginal poster's question if running a Dash masternode is more profitable than HOLDLING Bitcoin :

Like any altcoin out there it can be more profitable, but then again there are also higher risks associated with it.
For me personally it was well wearth the investment, i just had to wait some time before it got profitable (i entered the market at the height of a bull market).

You do have to understand that bear and bull markets can have a dramatic effect (both negative and positive) on Dash masternode rewards in fiat, also be informed that Dash has a yearly
reduction in blockrewards of -7.1% (next one scheduled somewhere in april 2020 i think). This will effect how much Dash the miners, masternodes and the budget get through block rewards
(it diminish over time, a planned reduction to combat inflation).

Best strategy in my view is still to buy a masternode in a bear market (when the total costs are low), save up the masternode payments in a hardware wallet (Ledger / Trezor) and then pay them out
in fiat on an exchange during a bull market.  

Link to a Dash Masternode Costs calculator : https://dash-news.de/dashtv/#curr=USD&value=1000

If you think Dash will outpace BTC, buy Dash. Otherwise, BTC. Or a simpler way to look at it is, do you believe an altcoin season will arrive before the BTC halvening does? Maybe it will, but it's kind of an expensive bet. Now it's certainly possible a Dash masternode will be profitable, but the question to ask is, would BTC be even more profitable? And nobody has an answer for that.

I'm not a big fan of crypto and passive income due to crypto being so volatile. If you want to hold Dash anyway, it's fine, but I wouldn't use it as a basis for deciding to buy a coin or not. What are the Dash staking rewards, around 5%? So unless Dash tags along with BTC within a 5% difference or less, you would have been better off holding BTC.

I also don't get the argument from some that Dash is less volatile or is always around the same price. It's lost over 90% from its ATH, while BTC is closer to 50%. Alt prices and BTC are not directly proportional, as we have seen during this bear season. Of course if BTC rises, Dash should rise, but it doesn't mean it'll be a proportional rise... could be more or less.

If you want passive income, I'd say look at real estate, or dividend stocks or bonds. If you prefer crypto, just choose whichever coin you like best, I wouldn't put much emphasis on the passive income thing as far as crypto goes.

No. I highly recommend HODLing. If you believe in Crypto long term, there will be many more bull runs that exceed the previous ATH, means at least 200% gain for bitcoin in next 2 years, and probably this would happen only for bitcoin, and the downtrend will continue for altcoins. Masternode projects with a solid plan to control inflation, community governance, and innovative products that solve real world problems will be profitable for years into the future. but there are a few masternodes worth holding that they usually require thousands of dollars invested with a 6-7% annual ROI, such as Dash coin. thereby it is most wise to HODL Bitcoin.

Ideally and if all things being equal, running a masternode with DASH would have been better but you can't guarantee this absolutely as bitcoin still dominates the crypto market. The crash of bitcoin will still affect your ROI on running DASH masternodes. In the long run i would definitely encourage you to run a DASH masternode other than just holding BTC.

That is not a problem as you would always have some DASH coins to sell so far as you are running a masternode. It's always better to go for a constant passive income.

Holding bitcoin has been more profitable than staking DASH in masternode in any given year. DASH seems to be less volatile due to more than 60% of it's supply being locked on masternode. This would prevent DASH from crashing in any unexpected bear run but if the market goes on a bull, we could have some problems with DASH. Ideally the price should increase as it has a low rotating supply but as every people would try to make profit from the price rise, it could empty many of those masternodes. Creating an even larger dump.

it wont be MORE profitable, but it will be LESS volatile. DASH stays around same price, it only moves when its owners make it
DASH was created to be a long term income specifically, the dev was hired to create something that would be a long term income for the group of people tht hired him
he was wildly successful. Community was pissed of course once it was found out, but the coin wasent made for them they forget...

i think it's more worth if you just hold bitcoin because if you just start dash masternode now you need more than 5850 days for your ROI
while holding your bitcoin can give you a profit and you can sell your bitcoin if the price increase up to 20k USD

If you run a masternode, you're essentially being guaranteed passive income.  If you run it for a year, you *will* earn some dash and you can check that earnings calculator to see roughly how much. 

How much you earn in terms of fiat currency depends of course on the price of dash.  You're right about dash possibly not performing as well as bitcoin (and in my opinion it might not), but bitcoin doesn't earn any income whatsoever.  You could sell off all the dash you earned throughout the year and grow your bitcoin holdings that way.  If you just held bitcoin you *might* get capital gains but no income.  There's a big difference there.

but that passive income isn't guaranteed right? After 1 year of earning if i buy back bitcoin again there is a possibility i get less bitcoin then i initially sold to buy 1000 DASH no? (bitcoin may rise to 4x next year and DASH may not)

I like dash as an altcoin very much, and I agree with you about the risk aspect of this choice.  On the other hand, I think dash has a lot of upside potential right now and I don't believe its going to drop from around $70 any further.  I certainly could be wrong about that, but dash is one of most popular altcoins with a strong community of supporters.

It has been almost a fantasy of mine for some time to be able to run a dash masternode, but there is no way I would spend over $70,000 to do it, even if I had that kind of money.  Too bad the coin requirement is so high, but that's life.  If I were Op I would go for the masternode option, even tho I like bitcoin more so than dash.  Great way to earn passive income.

No. Just keep HODLing Bitcoin. Dash masternodes has been out there for years now. If you start hodling your Bitcoin from today, you may be in for a surprise mid-2020. Which will most likely be more profitable than DASH's masternode.

Nobody really know the answer to this. People can only speculate.

Every investment has it's own risk.

You will have to assess this on your own. Consider the factors like bitcoin dominance, dash adoption, dash adoption, dash development, and many others.

If we are talking about our history, both of them were moving proportionally. After Bitcoin made a move, altcoin would follow after it. Based on this, Dash should be greater over Bitcoin. I am a fan of masternode coin and like to make a passive income, personally I do not think it is a bad idea because Dash has proven its usefulness after it was adopted in Venezuela with other several cryptocurrencies.
There is a possibility for Bitcoin to keep increasing while Dash is decreasing because everything is possible and we have seen it right now, every altcoins are underwater while Bitcoin has reached $9.000.

If you want passive income then buy Dash, if you are afraid of losing your money buy Bitcoin.

The answer will heavily depend on the performance comparison between BTC and altcoins in the coming year. There's a lot of predictions that the bear market will end and both BTC and alts will rise during the coming year, but nobody knows for sure which one of them will perform better.

Long story short, choose BTC if you want less risk and are happy with less profit. Choose DASH if you can accept higher risk for better profit.