Bitcoin Forum

So lately there's a bunch of altcoins implementing the masternode protocol. Sure enough, most of them are scam coins announced to make a quick buck. At the same time,  a few seem to have actual products and give off good signs. Do you think there's profit potential in these small masternodes?

I'd rather choose those established and well known coins like these

1. Dash
2. Pivx
3. Zcoin

Masternode coins are coins that are very fast and have the potential to rise in the long run, I see a number of masternode coins experiencing a dump that is very severe in the cryptobridge market and it certainly won't benefit anyone.

i have never liked them. the idea of masternode is a terrible one and is basically leading the coin towards centralization! the whole spirit of cryptocurrencies is their decentralization and the fact that you use them in a peer to peer manner not "peer to server to peer" which is the old flawed centralized solution.

not to mention that the risks that they have for those investing in them since you have to lock a large sum of money in that coin in your master node if you want to run one, and risk losing it to hacks, bugs, and on top of it all risk the price dumps to lose a huge amount of money!

coin masternode is different from other altcoins where it has less potential for good, because some of what I see in their markets are easy to ride and also easy to go down, which means the potential to survive at a good price is very lacking.

There's potential profit in them but I think the most important thing is looking for coins with real utility. Just because you can run a masternode and generate a good return on your coins doesn't mean it's wise. The coin value will crash to 0 if there's no utility to it.

Masternode is actually the same (more or less to me) like an ICO coin, but the difference is that they have a business other than having to make investors give funds to them. Let some people mining with the devices they have. For the roadmap and the project itself it is the same as the others, it depends on what they want to build in this blockchain system. On average, this Masternode is better, I suggest to choose coins that are already in the market, a few weeks ago many coins started trying to turn into masternode systems.

I made a google search and found this... http://prntscr.com/lyz3yd

Anyway...

5 Best Masternode Coins
- DASH
- PIVX
- BLOCK
- XZC
- ZOIN

Source (https://coinsutra.com/best-masternode-coins/)

Coin masternode still has good potential as an investment. if you are interested in masternode that has a real project, I suggest you look to know Fivebalance here https://fivebalance.com a project that is still token ethereum based, but they have started test net to make their own blockchian. current price still very cheap, I think it is very good to provide big profits in the future.

Of course there are advantages to running masternode as well as waiting for the price to go up is good to maintain. I am more pleased with masternode given by a coin dash

Well, at the moment of course, first I see the top of the coin dash pivx sys , and I added small coins which is not very much need for masternode slate

Can you tell me what's the actual product that has been created by MN coin? I do but that depends on the development of the coin itself consider about the fact that major MN coin will always take the control over the demand. You must try to consider it before try to take any small MN coin.

With regards to how Dash implements masternodes :

Centralization accusation

Almost 5000 masternodes spread over different geographic locations : http://178.254.23.111/~pub/Dash/masternode_locations_stats.html
I would not call that centralized, i would call that decentralized. Also with Dash annual -7.1% reduction on its blockrewards for miners and masternodes, decentralization will only increase over time.
On a sidenote : in crypto pretty much all cryptocurrencies have centralized aspects, as the whole market is still in such an early adoption phase.  

Locking money accusation

You dont lock a large sum of money, you put them in a cold wallet / hardware wallet so its safe from hacking/ theft and if you want to cash out you simply move those coins to an exchange.
No locking involved in any way and you remain in full control of your Dash at any time. Of course when you do move those coins to an excange, the network will not regnonice your server as a masternode anymore and you will not receive any further payments.

Peer to Server to Peer accusation

Masternodes are not different from Bitcoin's full nodes, except that owners get rewarded for their masternodes staying online 24 hours a day while providing support for its additional services like InstantSend and PrivateSend.
Which means Dash is just as peer to peer as Bitcoin, except that Dash has unlocked additional decentralized services which Dash can run on top of its first layer (miners), which Bitcoin cant.
Bitcoin tries it though through the development of its Lightning Network by implementing sidechains, but thats centralization at its best and funds in those sidechains actually will be online, vulnerable to ddos / hacking / theft and most importantly : not directly under your control.

Vulnerable to price dumps accusation

Price dumps (and pumps) happen to every cryptocurrency and to every large investor. Some Dash investors choose to cash out to FIAT, some choose to convert to a stablecoin but most masternode owners just keep their investment in masternodes, saving up their
masternode payments in a bear market and cashing them out in a bull market in a pretty much risk free way.
The continued increase in number of masternodes shows that Dash investors have a lot of trust in Dash ability to continue its development, survive bearmarkets and meet its goals, while at the same time providing the network with a very strong full nodes network.

Link : http://178.254.23.111/~pub/masternode_count.png

  


 

I'm trying to avoid them.

The popular coins like DASH have masternodes with autonomous price.
The new coins often are losing value so fast that it's almost impossible to end on profit.

DPOS coins are the best option for passive income.

I think the space has out live Masternode coins, the issue with them is that the first year is very profitable to investors but as more tokens enter the space the value get diluted and the profit margin shrinks, I have seen tis with Dash and most of the first coins to implement Masternodes on their chain, just look into these projects well before investing

At some point (like with all crypto projects) hype will be replaced by actual usability. If a cryptoproject lacks usability then investors will disappear at some point.
This will be even stronger the case when institutional investors arrive in the market, who will be investing for a long period of time and are looking for very clear use cases.

For Dash the use case is very simple : form a decentralized peer-to-peer network that can provide fast transactions, protect against double spending and with very low transaction costs.
All setup in a way that non-tech users can easily understand and use and supported through Dash decentralized governance and budget system. As a bonus Dash also provides optional
privacy on its transactions.

This use case has been proven successfull in several countries already (particularly in Venezuela).
Other (future) use cases for Dash are :

* Providing a solution to the physical cash dependency problem in the Cannabis industry (Dash has partnered up with Alt36 to tackle this)
* Developing services (dAPPS) once Dash Evolution hits Mainnet somewhere in 2019 (Dash will be much more like a decentralized platform then, where additional services can easily connect to)
* Forming a decentralized marketplace for academic peer review
* Storage of academic research (metadata) directly on the Dash blockchain through Dash Evolution
  

Masternode's can earn good amount of money, my masternode coin is energi, it costs approximately 13K USD but the roi time is 8 month. You can buy one with doing a research

I find masternode coins to be interesting. I do find some masternode coins have potential to grow. Of course there are scam masternode coins around, we just have to research proper before investing.

I think masternode coins is a good investment if project is very solid and has delivered product.
But as I know it is quite expensive - starting from some thousands of US dollars.

Indeed, it is quite interesting with masternode coins, many of them do research and indeed many can grow, but many are also obscene.
But all of this gives us the opportunity to be able to choose better coins.