Topic: Staking ETH: Is it worth it? (Read 759 times)

I have a feeling that prices will "explode" once ETH 2.0 takes over mainnet. It might be wise to grow our ETH holdings now before it's too late. Of course, "what goes around, comes around". ETH will increase in price for a short period of time, followed by a massive dump due to whales cashing out all of the profits. Staking is like the lottery where you can either make gains or lose it all in an instant. It's much easier to do (and cost-efficient) than mining, but the risk of loss is always there. Not to mention, PoS will reduce decentralization on the ETH blockchain.

Whenever staking ETH is more profitable than staking other coins, will greatly depend on current stake rates and market price. As long as you don't spend more money that you can't afford to lose, you'll have nothing to worry about. Just my thoughts

I am sincerely beginning to think you are a half-baked AI of some sorts. Every post you make is near useless. They are either full of regurgitated phrases that don't make sense, or are non-answers. What the hell are you even talking about above! Wait, don't even bother answering.

You can "stake" ETH for 23% APY payed out daily,  no lock you can take out anytime. No problems for me since 2019

https://midas.investments/assets

Personally, I would wait until AFTER The Merge.  I don't believe you will receive any additional benefits from staking it immediately and you will be better able see how it all shakes out.  Keep your ether in your wallet and Hodl

In my point of view currently market is already pump. Know a days i would like to sell my all assests and than wait for a dip and i will be plan which coin staking give me more rewards and its demand in future is good or not

I think that after the launch of POS mining, various pools will appear that will accept even 1 Ethereum to create a node. The rewards will be divided among all the participants in the node, but the various penalties are probably the same.
But you don't need to buy video cards
There is a joke on the Internet that miners are to blame for global warming, so POW algorithms will collect a lot of negative reviews.

To me, I think, is a step-down from Decentralization. The POS only favors those who have large amounts ETH to stake and validate blocks which can not be compared to POW where anyone could afford a good and cheap GPU could participate in the mining process

You'll earn a lot more by trading ETH than staking it. This is the same with other cryptocurrencies on the market. But not everyone knows how to trade, so staking would be the preferred choice for the average person like myself. Believe me, 32 ETH is a hefty sum of money if we consider today's market price. There are staking pools for people with less than 32 ETH, but I wouldn't count on them since it involves a middleman in the process. Staking ETH yourself, would be the most decentralized and secure path to take. We'll have to see if ETH developers decrease the staking requirement or leave it as is. What matters is decentralization. As long as ETH can remain decentralized with PoS, there should be nothing to worry about. Just my thoughts

i do not think its worthwhile to be staking ETH. You are actually risking your eth to losses for a measly few percent. Better to lock them up somewhere and keep it safe.

Naah, I think I would rather use the 32 ETH to trade even on spot market. I can make far much more than I can earn in staking rewards 

Does it matter which pool or exchange you join if you don't assess your risks?
Vitalik Buterin talks about decentralization, and you are ready to entrust your coins to custody services or smart contracts.
If you are staking, please tell us what service do you use?

if you are going to wait some years, sure is good to do it but if you are waiting a bear time, the best thing is don't stake it.

Cardano stake is better.

actually you don't have to have 32 eth you can also join a pool and therefore participate with less eth, is it worth it? obviously yes, why? because even if the earnings will perhaps be less, it will not be necessary to have active expenses such as buying expensive gpu and consuming energy it will be all gain

This is a good way to block your coins to prevent them from being sold
The prices for coins in the markets do not always rise, and it may turn out that when you need your money, you will not be able to take it.
Less than 6% per year is a very small price to pay for such restrictions.
If the price rises 2-3 times, then I will not be upset that I did not earn 6%, but if the price falls and I cannot sell coins, then this is a problem.

As he said before, it's good only if you strongly believe that this coin will have higher price than right now in the future, so the focus is no longer about the current price or we could have a chance to sell it at high price and buy it again lower, but it's about earning the amount of ETH as much as possible and sell it later in the future. So it's no problem we don't know the exact date when our coins will be unlocked in the future.

I don’t think this is a good decision because you don’t know when your coins will be unlocked.
And during this time, you can, for example, sell ethereum for $ 6,000 and buy this coin, for example, for $ 2,000.
After the end of Ethereum mining, users will be able to manage their coins, then you can think about such an investment.

{I'm all in favour of ETH staking, so I'm very biased.}
I'm aware that there is an alarming degree of centralization at the moment, but it's still the 'least' decentralized, man-made option (besides BTC of course), and POS should even out the playing field even more. Let me explain.

The centralized exchanges/ providers are the easier option today, and therefore attracts many people into the wrong places, rendering it (alas temporarily) more centralized than anticipated.
But just like DEFI and DEXs took a long time to 'get it right' - so will staking providers and solutions. Today Uniswap or Compound are just as big / impressive as centralized solutions.
At the end of the day, providers (just like ourselves) will be able to put up a real fight against the Binances of the world.
There are a lot of recent developments, scheduled to happen around the upcoming 'merge' that will help make staking 'truly' decentralized.
I wrote down an example about it today: https://bitcointalksearch.org/topic/m.57465896 (again slight shill)

In terms of rewards and APR, keep im mind that after the merge, not sure for how long, we should expect significantly higher rewards.
https://www.reddit.com/r/ethstaker/comments/muepnz/eth_20_validator_152_apr_after_the_merge/

As I understand it, and correct me if I am wrong a these points.

1. Right now the only smart move if you looking to be a ETH 2. staker (validator) is spinning up a VPS with companies like Amazon/Google/Azure.  You are going to want at least 4 9's possibly 5 of reliability and uptime.  Because if your down, your penalized. 

2. You can't get out right now if want to (phase 0) until phase (1.5) sometime between now and 2022/23?  Which means if ethereum is tanking between now and then you lose,  on the flip side if ethereum jumps to 4K you can't liquidate either.  And you have ask to withdraw (stop validating) so if a number of validators want out, they could be blocked for a period of time.

3. Penalties are severe for inability to participate as a validator in the network.  No exceptions give in their documentation for natural disasters (hurricane or earthquake for example) or man made (damage infrastructure due to human involvement).  In theory (honestly that is all we have now is theory) a validator could lose their entire stake if a majority of the network decides to take it.  It doesn't matter the reason.  If a majority agrees your out, your out.

Finally it looks like Ethereum 2.0 will devolve to a few validators (couple of hundred or less) as they purge their numbers over time and via the normal acts of transactions accumulate enough of ethereum in their bank to represent a majority of the vote (which is based upon how much ethereum you have). Note the highlight line from their FAQ.  Tell me that isn't an incentive for a bad actor(s) to try and manipulate ETH 2.0 to get 51% of the vote and evict validators and take their stake in the process.

https://launchpad.ethereum.org/faq

What exactly is a validator?
A validator is an entity that participates in the consensus of the Ethereum 2.0 protocol.
Or in plain english, a human running a computer process.
This process proposes and vouches for new blocks to be added to the blockchain.
In other words, you can think of a validator as a voter for new blocks.The more votes a block gets, the more likely it is to be added to the chain.
Importantly, a validator’s vote is weighted by the amount it has at stake.

Exactly. The concentration of ETH's supply among a few stakers (validators) should be a real concern for those supporting the decentralization of Blockchain technology. It seems to me that ETH devs only care about convenience than true decentralization. It's always been about the money, instead of making crypto/Blockchain land a better place. Once ETH becomes a full-fledged PoS cryptocurrency, big exchanges will dominate the Blockchain. I believe that ETH miners will migrate into ETC, making the latter blockchain network bigger and stronger than ever. One thing for sure, is that ETC has been a victim of constant 51% attacks over time. It's hoped that with the ETH 2.0 upgrade, this will no longer become an issue.

Nonetheless, I believe that staking ETH yourself will only be good for making short term profits than anything else. Don't expect to take ETH seriously as the network will become less decentralized over time. ETH will remain actively traded on the market as long as people keep pouring money into it. If you care about decentralization, then I'd suggest you look elsewhere. Mining ETC or even Bitcoin itself might be a better option than staking centralized coins. Just my opinion

With the introduction of PoS, ETH is becoming more and more centralized rather than becoming decentralized. Exchanges like Binance and people like CZ are always willing to control the market and exert huge centralization over the crypto community and this was possibly true when he was willing to do a 51% attack by bribing miners and reversing the bitcoin chain. Nowadays the primary purpose of any cryptocurrency has become a mere speculation, so obviously ETH would shoot up in price if there are more proper developments taking over but on the other hand if there are worse speculations going over and in the process we would be suffering from a bear market. This is why a mineable PoW and ASIC resistant currency like Monero would offer an excellent decentralization while comparing to Bitcoin or a PoS coin like Ethereum.

Ethereum Classic is more or less an useless mineable currency, i.e they are only used for mining and are suffering severe 51% attacks now and then. So probably ETC is geared more towards making money by offering a better mining solution rather than any use cases. ETC becoming decentralized would never make the coin superior to ETH atleast in terms of making profits as ETH provides one among the best platforms on the decentralized web to deploy contracts. This could never be achieved by a centralized chain like BSC but there are still quite a few possibilities DOT might be looking as the future ETH with more scalability and thereby providing similar use cases of ETH.

A mere $5k per coin would place the total valuation of Ethereum at $500 billion, but there are centralized chains like BSC which offers better scalability in deploying contracts so possibly there could be stiff competition for ETH in terms of hitting $5k price.