Bitcoin Forum

A simple question, If i buy 1000 DASH with Bitcoin and and run a masternode, i will generate passive income. My question is will the end result after 1 year (initial deposit + income) will be greater than if i decide to HODL bitcoin and don't run a masternode ?
I want to earn passive income but it has a risk right? What if DASH price falls after one year and bitcoin price keeps increasing,that can happen? or Bitcoin and DASH price directly proportional in long term?

Actually you already answered up your own question.Of course where anything do has the risk.I do check out some masternode
profit calculator of DASH https://www.stakingrewards.com/asset/dash and basing up on calculations its profitable but yes you would need up
1000 DASH for that and come to think off that price do moves either both ways. so its your choice to make.

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.

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.

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.

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.

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.

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) :P :P

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.

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

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...

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.

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.

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.

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.

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

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.

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!"

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.

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.

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.

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.

Having a DASH masternode means you can have another source income. No matter if the DASH price is falling, you still receive your interest. When you want to have a DASH masternode, then you should have a huge bitcoin because to get the masternode will require a big amount of bitcoin or fiat. It is still difficult to say you WILL get profitable from DASH than holding bitcoin because that will depend on bitcoin price and dash price. But if you consider getting another source income, then you can try to invest in DASH masternode so you can get passive income in DASH.

That interest or passive income doesn't mean anything if the price will fall against btc and you are unable to make more btc with it. He was asking which one is more profitable, so the question is which makes more btc to you, btc itself or dash, it doesn't matter if the dash raises its value in usd.

it is very easy to find the answer to your question. all you have to do is to look at Dash price over a long term (in the past) and see if it could have been profitable for you or not.

lets say you bought 1000 Dash in Jayapura 2018. it would have cost you 85 bitcoins.
with the current price of Dash, your 1000 Dash is worth 7.5 bitcoins.

in other words you simply would have lost 77.5 bitcoin = $700000+.
do you think the Dash masternode gives you that much profit?

lets say you were doing it for 2 years, buying at January 2017.
it meant investing 15 bitcoins which would have turned into 7.5 bitcoins.
in other words in 2 years you would have lost 7.5 bitcoin or exactly half.

lets say it was 3 years, it would have cost about 8 bitcoin which is now worth 7.5 bitcoins! you still lost bitcoin!

This is a very good answer and it's the way I see masternode and staking investments. In fact masternode is jumping on deeper waters than simply staking. It's more like mining where you need a big initial investment and your funds get frozen in the hardware or in the node and when the price goes down all you can do is watch in fear. You get $100 a day and the price falls by 1% making you lose $150 and the next day the same thing and on and on for a month. It's too much for most people. You need to really be a confident person to survive it and not sell everything.

if you hold bitcoin and dash with a very long term it is very risky because cryptocurrency is very difficult to guess even though with the indicator I say 90% is almost right the rest is not, therefore in my opinion you should really think about it so as not to suffer losses.

You will now know which one of the two is better unless you try doing it. They are both different and unsure what will the price of BTC tomorrow. Personally, I will choose BTC because I feel more safe on it than DASH. Passive income is a good choice but I like BTC to surprise me. Whether it is good or bad surprise, it is a risk that I will take. For you, decide on yourself which is risk is more appealing for you then fully accept the terms of it.

Why not both? Buy some DASH and keep the rest of BTC to hodl. It might not produce as much as maximum income if you only choose one of the two options, but at least you got the feel of both. The market right now for dynamic and fluctuating coin like bitcoin is low so, many expect that it will rise next year. In the end, it will be your decision so be wise. Masternode is a complicated stuff for me so I rather choose BTC.

For now with the coming Bitcoin halving, I won't risk spending that much on Dash, most of these Altcoins are there just to trade them against BTC and not for long term holding, the time when hosting masternodes was profitable is long gone and  I don't see any of them making it unless there is a real world use case for the token/coin

My honest opinion for now would be that if you run a dash masternode for some months to make some extra profits and then switch back to Bitcoin with at least 1-2 months until halv happens. If you're a long term investors , I think both of the solutions can bring you profits but its Bitcoin would be safer lets be honest as for an altcoin you never know how it will perform. Also why risk to buy a Dash masternode ? When in my opinion , Block nodes will be a lot better than Dash.

Return on Investment (ROI) comparison between Bitcoin and Dash :

https://messari.io/screener
https://i.imgur.com/bm8h1hW.jpg

If this trend continues, i see Dash getting a far higher ROI then Bitcoin (once Dash gets out of this current multi-year bearmarket).

I would also rather hold bitcoin than have to bet on the dash. not because of a bad dash, but I see as you see it, that there will be an update in the next year I think buying it now and holding it in until the update runs is the best step.

it's different again if you start the master node from the early days and you can earn a high profit
but for now running dash master node isn't profitable because of the ROI is high

for that reason, it seems like everyone will also think of holding bitcoin instead of running a DASH masternode. but if I would rather trade altcoin than hold bitcoin for a long time. because I have difficulty analyzing the market in the long run. especially I analyze their projects and roadmap plans. although it has been going well and there is a small increase but if the market has decreased it will adversely affect the price growth.

so that means it's not worth to SELL bitcoin to buy DASH or any other altcoin for that matter. One should try running DASH masternode only if buying via fiat and not sell bitcoin to buy DASH masternode. Correct?

care to explain what are block nodes and how to profit from them?

Or the other way to look at it -- you would have been much better off simply investing in BTC with your fiat.

As for alts, it's all about timing. Actually that applies to BTC too. But if you bought DASH when it was super cheap (it was as low as .25 at one time) and sold at its ATH, you would have outpaced BTC by quite a bit and made a ton of money. However if you bought a DASH masternode at its ATH and held to today, primarily thinking about ROI from rewards, not price, you would have lost over a million dollars.

So if you think DASH will outpace BTC, go for DASH. Otherwise BTC. And nobody can tell you where the markets will go.  Once ETH becomes a staking coin, I also wonder if it'll attract some of the 'rewards investors', which means folks will flock to ETH for rewards instead of DASH. ETH certainly won't require such a large investment as DASH does.

You could always throw a little into DASH if you are unsure,  thinking perhaps it'll do the crazy pump thing in the future, but again I wouldn't focus on staking rewards as the determining factor.

There were stories Eth only require 32 ETH in order for someone to join and stake to receive rewards. That is much lower requirements than what dash asks. That is still a passive income although Its not assured yet whether the rewards is worth than just holding your BTC.

If I have that 60btc, I would rather buy Mining devices for Monero, it just need graphic cards and set up a solar system for free electricity.  Someone is already doing this as I saw him here in the forum.

Actually, yes! Running a Dash master node is a quick profit thank holding bitcoin for years! 10K DASH is a pretty good amount to make a decent profit. By holding bitcoin, one can earn a commentable profit after years! Which you can earn too because if Bitcoin price rises, DASH price will be too! But don't forget that Bitcoin is the safest investment in crypto!

This just explain you might be lost in terms of BTC if price of Bitcoin will increase and its better to hold the BTC in long term than exchange it to Dash to earn a passive income. But in terms USD you will not so much be affected you will earn by staking. but forget about BTC  you have before becuase the time will come your DASH will not be the same equivalent from BTC you have before.

It depends more on the situation of the market. By the end of the year, I do not know which one will provide the better, but BTC's performance since the beginning of the year is very good, and we see that this increase has a little impact on altcoins. Therefore, instead of selling the BTC immediately, it is useful to look at the issue from a wide angle.