Crypto passive income - a bubble?

[kingzpro]

I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?

There are different opinions about this crypto passive income but only time will tell personally i think that it is here to stay but it has to prove the successful model through the bull and bear trend, if they are able to survice through all market conditions then they will move towards mass adoption.

[Anish02]

It all depends from way of passive income, some of them really may be bubble/Ponzi others are legit

Once upon a time when I am a noob to the crypto and that I had made an investment in the Bitconncet platform which was a lending platform and after several months later it ended up like one of the bigger Ponzi scheme. Since then I never look towards any platform which promises to the passive income.   

[Desscount]

passive income is not a bubble, the bubble is the very high volatility of cryptocurrency prices, currently the bubble is just starting, and has not yet burst, because the price of Bitcoin is still relatively cheap compared to the end of 2017

[NVZNtoken]

"Passive income" is a codeword for free money. What's more interesting than projects that promise free money materializing out of thin air are projects that apply blockchain technology to real life use cases. Investing in projects based on solid fundamentals that have real use cases is the true "passive income".

[landoffaucets]

Both PoS and PoW have advantages and disadvantages. Many PoS supporters say that PoS consensus can be much more decentralized than PoW because when you look at Bitcoin, the biggest power have miners, but could everyone be a miner? No, you have to invest a lot and you need cheap electricity. That´s why BTC mining is centralized in China.

[cassavachips]

My analysis of staking on projects is to make investors or anyone who holds their token or coin hold it longer by getting results according to the pool and the amount they are staking. Maybe in my opinion what is sacrificed is when staking sometimes the price goes up and we can't sell it because the staking is still ongoing.

[Convery]

I have heard a good claim. Gold is in a bubble. Current money is in a bubble. And everything that is connected to inflation money is in a bubble. Because the more money we have, the more we spend on investments and this will cause an increase in the price of assets.

[arufox]

As I know staking supported by holders who hold a certain number of coins/token. Before staking, they need to buy coin first and hold it in their wallet then open it, only if he keeps the wallet opened then they will give the reward. Almost like POW, so I think that not dangerous. But be careful if you see project provide 20% or more because I think the normal staking is only less than 20%

[Bezobraznike]

   Passive income isn't something new. People make money and instead holding it they want their money to work for them. With crypto-currencies it's available for all of us,
even with small capital. Before for that you needed to have a lot of money to invest,
now you can start with small capital.
    It's not a bubble, but not all staking projects are good. Choose staking coin carefully
and I believe you will be satisfied with results.

[rodskee]

My analysis of staking on projects is to make investors or anyone who holds their token or coin hold it longer by getting results according to the pool and the amount they are staking. Maybe in my opinion what is sacrificed is when staking sometimes the price goes up and we can't sell it because the staking is still ongoing.

That's the thing that needed to address more carefully learning to let go while the value is really rising up then
buy back when it fall back to generate more coins.
But the timing is really hard for this staking project most of the time you buy it high and sell it low so instead
to earned you are losing your investment.
You need a deeper knowledge in order to make a good timing and to have fruitful journey supporting the project
and earned using the passive features of the coin.

[South Park]

I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?

I am seeing the same thing and I share your opinion, it seems that slowly but surely the composition of investors in the market is changing, just a few years ago the majority of those that invested in this market were looking to get rich really quickly and as such icos became incredibly popular, but now we are seeing a change in people seem to be more interested in receiving passive income, there is just one small problem and that is that scammers are going to notice the change and begin to offer coins and services like that and we know how that story ends.

[H1N1]

Sometimes i thinks like that too. In Proof of Work coin, the miner need to buy some mining rigs such ASIC or GPU to mine the coin, the capital fund is on the devices. On the other hand, in Proof of Stake coin, the staker only need to buy the coin and stake them using their wallet on the pc, the capital fund is on the coin. So, both of the coins are requiring some capital funds.

[Bitcoin_bullish]

What people call passive income comes with dangers. People should evaluate the risk before jumping into dubious yield farming methods. I get it that DeFi may allow exiting any time the user of the platform wishes, yet there is a risk as well when liquidity will be low and withdrawals won't be able to process. At some point, DeFi platforms won't be able to pay withdrawals especially during a mass exodus of "lenders". Perhaps they will provide vast interest with their balancers but when a token's price will be going to zero this won't mean anything.

A certain part of the altcoin trap is in a bubble right now and it won't end well.

[timmmers]

It all depends from way of passive income, some of them really may be bubble/ponzi others are legit

I thought that when it is truly decentralized, then it can´t be the Ponzi scheme because it the whole profit doesn´t come to creators right? But it could be a pyramid scheme, just like many "financial" Dapps on Tron network, where you send Trons and you get a daily interest.

[el kaka22]

Maybe people shouldn't really focus on the passive income thing as much as they do right now, there is really no reason why they should be dealing with the income type of "I will sleep and nap and do nothing while my money makes money".

I understand that many of the super rich did became wealthy that way, the more money you have the more money you make by simply having that money, Jeff Bezos is literally doing nothing different than just 5 months ago yet he worths close to 200 billion last I checked, no human in the entire race of humanity has worked enough in 5 month span to make almost 100 billion dollars, but how did he do it? Well he owns amazon stock and that's it, he doesn't even "have" that money.

So, maybe we should try to contribute to the community to make more profit instead of just expect our money to make money.

[LbtalkL]

Mining is obviuosly more profitable than staking and those other stuff but there are some new coins in the market that offers 50 - 88 % of APR for staking, I don't know if it will survive in the long run maybe it is just temporary. Yes, it is getting popular there are platforms that offers staking and they will lock your coins for a certain period. Sometimes it makes you feel unsafe unlike if you have your own mining rig you have the control of everything. I guess they sacrifice greater risk on staking.

[Ceyflix-Rez]

Between mining and staking I prefer mining because it's more profitable than staking, most staking coins only give up to 15% ROI annually, mining is more profitable than POS coins, right now I plan on adding more graphics card to my mining rigs

[thesmallgod]

Anybody looking for passive income in crypto might end up falling for this investment scam that claim paying using crypto. Crypto staking might be profitable but it also boil down to the price of the coin you stake on at the end. Staking on MB8 coin has thought me a great lesson. It is always good to make a hay when the sunshine

[r32godzilla]

Only times show if the idea behind Proof of Stake concept is correct. There is no cryptocurrency that is widely used and it uses PoS algorithm. The first would be Ethereum if Ethereum fails with it, we will know that the way was wrong and we need to find another way or back to Bitcoin´s PoW.

[rexxarofmoknathal]

I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?

These methods of staking, lending etc to get modest interest rates are unlikely to be ending any time soon as these are relatively new and are analogous to interest rates from banks, except here the returns are higher but it's fine because it balances out the higher risks.

Mining as you say requires investment first, here, the simplicity of staking and lending all together is that all you do is taking a higher risk but don't expend on infrastructure so the returns unlike mining aren't delayed. Now, when one looks at the two options it becomes obvious which one to take, even if one believes is a short-term option...