MasterNode Coins Getting A Bad Reputation

[grendel25]

I have come to love masternodes as soon as I saw them.  It wasn't to get rich.  It was about a few things such as the incentive to buy or mine and hold.  It is a good way to capture the importance of the old saying, "skin in the game."

But lately I see things like "No ICO, No Masternode" and it makes me realize people are lumping Masternodes in with ICO as if they are both scams.  The truth is that many are and many are not.  The ICO was and still is a fantastic way for blockchain projects to raise funds for their project.  Just as masternodes are still a great incentive model to attract investors and enthusiasts to the project.

But there is one more economical impact about masternodes that I want to mention and that is regarding Virtual Private Servers (VPS).  You see, many masternodes are ran through a hot/cold wallet setup where the cold wallet that doesn't have to remain open and can be secured offline is setup locally to the user.  Meanwhile, the hot wallet that is always on 24/7/365 is located remotely on some VPS.  This usually means job creation because someone has to setup and maintain that VPS infrastructure. 

So the next time you see that impressive 2-Billion USD market cap for masternodes (or whatever it may be now/yesterday/tomorrow... it has probably fluctuated between 1-3Billion)... Just remember that there's even more money being spent on things like VPS and the infrastructure behind that.

[grendel25]

bump for discussion... maybe the timing was not the best when I first posted.

Interested in your opinions.  Anyone else enthusiastic for the inherent security and stability value of Masternodes?  Anyone genuinely think that masternodes are bad?  Why?

[khoapham89]

But lately I see things like "No ICO, No Masternode" and it makes me realize people are lumping Masternodes in with ICO as if they are both scams.  The truth is that many are and many are not.

Actually, I think both of them to be the same, which can be scam if they do not have a product or service that generates profits for the investors. And I see a lot of projects selling masternode with products which "plagiarized" from other projects as well as absolutely no information about the team behind that project, even stealing identity. So, the two types are not very different. Forgive me if I say anything wrong.

[Lagduf]

bump for discussion... maybe the timing was not the best when I first posted.

Interested in your opinions.  Anyone else enthusiastic for the inherent security and stability value of Masternodes?  Anyone genuinely think that masternodes are bad?  Why?

Because most of them are securities. I never seen any coin or token that can't be included as security. Masternode needs a lot of money and that makes those people are staying away from MN.
How much i should pay to become a masternode and does it worth right now?

[disconnectme]

It took me time to understand what MNs are  but when I do it was late, I could remember when I knew about Dash it was $2 and you just need 2000Coins to set one Masternodes up but now it is very late for me to get one. The issue I have with MNs now is and people are realising this too with time the incentives to hold one diminish because the reward shrinks and Dash is suffering form this too and also the issue of Cabals voting to get their idea passed

[grendel25]

I guess at this point it just seems that it doesn't really matter rather a coin is a masternode, POS, POW, ASIC/FPGA resistant, ICO, or whatever selling or non-selling point.  All that really matters is how successful the coin is as a result of efforts made by real people.  Bitcoin didn't magically go to $20K for no reason.  It gained acceptance and usage as a result of hard work done by people to secure business agreements as well as work done to install support infrastructure. 

I think those are the main things that matter: people and infrastructure.

[Sicithdeve]

I have come to love masternodes as soon as I saw them.  It wasn't to get rich.  It was about a few things such as the incentive to buy or mine and hold.  It is a good way to capture the importance of the old saying, "skin in the game."

But lately I see things like "No ICO, No Masternode" and it makes me realize people are lumping Masternodes in with ICO as if they are both scams.  The truth is that many are and many are not.  The ICO was and still is a fantastic way for blockchain projects to raise funds for their project.  Just as masternodes are still a great incentive model to attract investors and enthusiasts to the project.

But there is one more economical impact about masternodes that I want to mention and that is regarding Virtual Private Servers (VPS).  You see, many masternodes are ran through a hot/cold wallet setup where the cold wallet that doesn't have to remain open and can be secured offline is setup locally to the user.  Meanwhile, the hot wallet that is always on 24/7/365 is located remotely on some VPS.  This usually means job creation because someone has to setup and maintain that VPS infrastructure. 

So the next time you see that impressive 2-Billion USD market cap for masternodes (or whatever it may be now/yesterday/tomorrow... it has probably fluctuated between 1-3Billion)... Just remember that there's even more money being spent on things like VPS and the infrastructure behind that.

a loy of projects are getting a good reputation amd a bad one but it does jot meam taht they can not be better within time

[Sicithdeve]

I guess at this point it just seems that it doesn't really matter rather a coin is a masternode, POS, POW, ASIC/FPGA resistant, ICO, or whatever selling or non-selling point.  All that really matters is how successful the coin is as a result of efforts made by real people.  Bitcoin didn't magically go to $20K for no reason.  It gained acceptance and usage as a result of hard work done by people to secure business agreements as well as work done to install support infrastructure. 

I think those are the main things that matter: people and infrastructure.

yes i absolitely agree with you that it ,eams a lot and ylu need to know that this wolrmd is not going to disappear crytpocurrency is our future

[xialan_lu]

Do you know Minexcoin? they also offer dividend programs such as Masternode but they call it Parking Coin. Although I'm not sure this is worth mentioning as a Masternode / POS coin, but in fact the how it works is the same. The difference is you will not need a VPS and you don't have to let the wallet stay online 24/7, besides that you don't need a lot of coins to be able to do it.

[butka]

But there is one more economical impact about masternodes that I want to mention and that is regarding Virtual Private Servers (VPS).  You see, many masternodes are ran through a hot/cold wallet setup where the cold wallet that doesn't have to remain open and can be secured offline is setup locally to the user.  Meanwhile, the hot wallet that is always on 24/7/365 is located remotely on some VPS.  This usually means job creation because someone has to setup and maintain that VPS infrastructure. 

This simultaneous hot/cold wallet MN solution is new to me. Could you elaborate a bit more? Is it so that the hot wallet on the VPS that just serves to reflect the funds that are safely stored offline? Or is it a completely different wallet that is somehow connected to the cold wallet? Can you give an example of a masternode coin that has implemented this solution?

[hesham51]

Are they still profitable compared with what you will gain from the swing trading?,many Masternodes just consuming monthly fees of VPS with no profits.

[drmasa]

We should not compare masternode with stacking coins. That minex parking is pure ponzi and it crashed already. But I had some bad experience with masternode coins in last year also. If some masternode coin becomes popular like it was chaincoin at one moment, so many people created masternode that % of coins that you got from mn became ridiculous! Ane when people figured that out coin crashed!  And there was Aspect coin that was pure scam, they were selling mn via discord, they had wallet, coin was mined, it lasted few days and then they just disappear. I'm sure that there are a lot of examples like that.

[grendel25]

But there is one more economical impact about masternodes that I want to mention and that is regarding Virtual Private Servers (VPS).  You see, many masternodes are ran through a hot/cold wallet setup where the cold wallet that doesn't have to remain open and can be secured offline is setup locally to the user.  Meanwhile, the hot wallet that is always on 24/7/365 is located remotely on some VPS.  This usually means job creation because someone has to setup and maintain that VPS infrastructure. 

This simultaneous hot/cold wallet MN solution is new to me. Could you elaborate a bit more? Is it so that the hot wallet on the VPS that just serves to reflect the funds that are safely stored offline? Or is it a completely different wallet that is somehow connected to the cold wallet? Can you give an example of a masternode coin that has implemented this solution?

Sure and yes, your summary is fine, "reflect the funds that are safely stored offline". 

The hot/cold wallet allows you to have a proxy representation of your local/cold wallet assets (masternode collateral) via the hot wallet (VPS). 

In other words, you can shut down your local windows/Linux wallet  as you please or leave it open for staking only (if the coin supports POS).  Meanwhile, the hot wallet (vps) is on a highly secure and high reliability server infrastructure that you can shop around for.  On top of assuring a high-reliability connection to the coin network, it can also reduce the attack vector to your direct wallet.  If someone were to attack your hot wallet (vps) it would merely be the equivalent of cyber-vandalism with very little actual damage done.  It could result in an interruption to MN rewards but that's better than a focused attack on your local machine if the scenario of the local machine is to be left on constantly.

Most masternode setups are hot/cold wallet setups.  It would be easier to list coin projects that haven't started with hot/cold setup support and I can only think of one:  Binarium.  But I wrote a guide to setup a hot/cold setup for Binarium.