The Truth
Great title right? Certainly gets a lot of clicks. Who wouldn't want to make $38,000 yearly from a $2750 investment? Unfortunately it's too good to be true.
The Clickbait video
In the video Suppoman goes over masternode coins and the website http://masternodes.pro/
Basically the website tells you the current masternode coins and the ROI (profit) you will make by running a masternode. People saw the title of the video and the 1376% ROI and jumped in two feet first without thinking for themselves.
Screenshot from YouTube Video - Sept 7th
Screenshot a day later after everyone bought in - Sept 8th
But... What happened to the profits?
As you can see the coins value went up but somehow the daily profit went from $103 a day to $19. This is because masternodes share the block rewards. The more masternodes in existence the smaller the piece of pie becomes. It went from 18 masternodes sharing block rewards up to 174. The number of masternodes is always going to increase therefore the piece of pie will always become smaller.
But the coin is worth more!
The coin is worth more because people had a serious case of FOMO and bought in hard. Logically, the coin value should drop overtime. Why?
Coins are being minted everyday = More supply
Value of owning a masternode goes down as more masternodes enter the picutre = Less demand
What happens when there is more supply and less demand? Think back to economics 101 and answer for yourself.
Let's not forget that this has happened before.
When can masternode coins work?
When the token has real value outside of just generating more tokens. For example Dash has uses outside of just generating more Dash. If the purpose of a token is only to generate more tokens... then you have yourself a worthless token.
What to learn?
Be careful about what you see online. Sit down and think about these things. The people who jumped on neutron likely didn't understand how the block reward would be split which would directly eat into profits.
Please remember that the above post is not financial or investment advice but instead a look into how I invest in crypto. Always seek assistance from a professional financial fiduciary.
Not bad man, GoByte right now is the most profitable.