We have recently seen the market cap of cryptos go from over $800 Billion to less than $450B. A correction that has shaken out some, presented an opportunity to buy cheap for some, and others are just holding through it all. Both on twitter and people directly messaging me, I have heard some say, "This is the crash. Get out now."... To those saying such things, I would like to say, you're a fool, in the kindest of ways. Throughout this correction, I have found myself increasingly intrigued by the concept of masternodes. I took a step back and thought about why that was the case...
- People hate losing. During a steep correction such as this one, people get nervous and scared.
- Everyone likes something that is "guaranteed". People do not like to see things in the red.
- When things are down, we look to where we can make money in the meantime.
Those are the three main thoughts that came to my mind. This is why I was looking at masternodes more than usual. I had previously disliked the idea of committing capital to running a masternode is the environment we have been in, where we see some coins to 10x in a month. However, I now think masternodes will become increasingly popular throughout the next year.
Although masternodes can be costly, they provide a consistent return, acting like a stock that pays dividends. Not only do you get rewarded for running a masternode, but you still experience the return on gains from the coin itself (obviously). For those who do not like the volatility of the market and want a way to hedge against that slightly, running a masternode can provide that. For example, if your masternode returns 5% a month but the market is down 5% this month, you net 0% gains or loses (Hypothetically if you only own the node). I think this could develop into a way of entering the crypto market for new users because it "guarantees" them something no matter what. It does not guarantee gains, but it does guarantee some sort of inflow that can act as a hedge against the volatility, especially in a down market, such as the one we have experienced lately.
Thank you for reading and all upvotes are greatly appreciated!