Just a little history of investing in Crypto over the years. Mining BTC when it was $80 a coin. What a losing proposition.
I have been involved in Crypto for nearly 6 years. Starting off with 2 mining systems I bought from China, stored in my basement and delved into pooled mining. It was more of a geek experiment than anything else and with Bitcoins being valued at $80, earning 5 of them didn’t get me close to the $3000 I paid for the mining hardware. I then tried mining with USB sticks and graphics cards. Long story short, it’s now way too hard to earn money mining Bitcoin as a home enthusiast. And there was little use for them.
I ended up with around 12 BTC but lost money based on the then value of $200 a coin on the cost of the mining hardware and electricity.
How to spend a single BTC. Help crowdfund Ethereum
A really good thing I heard the ETH talk from Vitak in Miami and spent 1 BTC to help fund the project. He promised to return 1000 ETH for every BTC someone gave him. The birth of the ICO. Ethereum is a great platform and has provided the backbone for countless ICO’s. Companies created ERC-20 tokens on the Ethereum blockchain and sold them to investors like me. And the floodgates opened wide. Thousands of projects were looking for funding and they got it. They also brought an ugly side to the crypto world. ICO SCAM projects.
The overstimulation and complexity of 2017 ICO’s
As thousands of coins tried for an ICO in 2017 it became very confusing selecting the good from the bad and the scams. Similar to Venture Capital funding I was hoping for the 1 in 20 winners. I had my fair share of really bad ICO’s but hit it lucky with XLM when IBM backed the project and it went from under a penny to 73 cents. (as of Nov 2018 it now stands at 23 cents.)
Trying to earn a passive income from a crypto investment.
Crypto values will rise and fall. We have seen a near year-long bear market starting in Jan 2017. I turned my attention to trying to earn a passive income from the coins I owned without investing any additional cash. Here are a few attempts that didn’t work out so well and then the current BULL opportunity
Attempt 1) Buy mining contracts from Bitcoin mining websites. A few companies have built mining farms where they own the equipment and allow you to invest cash now to earn a part of the ongoing mining rewards. This turned out to be great for the first months, however, as the difficulty of the chain increases, the BTC earned decreases and soon there is a negative return on investment.
Attempt 2 ) Purchase and hold Proof of Stake coins.
Unlike Bitcoin there are a number of coins that use a Proof of Stake algorithm to reward coin holders such as NXT, ARDOR, and DASH. However for this to be effective and reward the coin holder in a meaningful way the chain itself must have a significant volume of transactions from which the holder will get their reward. As of today none of these chains have the volume to return a decent value for the cost of the coins being tied up. These proof of stake investments may well turn out to be profitable once the underlying coin gets traction. There is no cost to establish and keep your stake alive once you own the coins. There will be a future article on how to create a proof of stakeholding in each of NXT, Ardor, and DASH.
Fast forward to November 2018 and the passive income solution with gaming apps on EOS
Firstly what is EOS? In short a new blockchain promising super fast transactions and a platform for truly distributed apps. EOS, which held a year-long ICO launched its mainnet in the summer of 2018. EOS in itself is complex but powerful. A user needs to purchase EOS, then allocate some to Stake for RAM, CPU and NET resources in order to interact as a user with the apps that have been written to work on its platform. All confusing as it’s not actually using your computer CPU.
Here is a service that can get you started with a new EOS wallett with the Namevault service
The first wave of passive income gaming apps started appearing on the EOS chain in late 2018,
My current favorite is EOSRAN who are just getting started with a blackjack game and offering double the mining rewards
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