Generating a true passive income with a Masternode. A real possibility or a Utopian dream?

The last 10 years, the Blockchain technology has made big jumps. What does this mean for the economical environment? And is it really possible to generate a true passive income?

Bitcoin.
By now, you probably have heard about Bitcoin. A digital currency that has taken the world by storm. The amount of Crypto enthusiasts seems to be growing every day and despite some big names being against these cryptocurrencies, Bitcoin and the Blockchain are here to stay.

Banks.
As there are no banks involved in handling the transactions, someone needs to handle all these transactions. This is being done by special computers also called ''Miners''. These ''Miners'', handle all he transactions and in reward, receive a ''Block''. The block contains Bitcoin which is distributed to the miners who are collaborating in a so called ''pool''.

Energy consumption through the roof!
Within the first few years of its existence, China had over 60% of the Mining market and as more people started mining, the more difficult it became to receive these rewards. On top of that, you need to invest in a computer with big computing power that drains as much electricity enough to power 6,770,506 U.S. households. The numbers get even bigger when we calculate the Number of U.S. households powered for 1 day by the electricity consumed for a single Bitcoin transaction. Over 30!

The enormous amount of resources used by mining Bitcoin are steadily increasing. This in a time where global warming is a serious threat.

An inevitable change.
That is why new Cryptocurrencies have learned from this and started mining in a different way call Proof of Stake (POS). Unlike the Proof of Work (POW) method where big powerful machines have to make the calculations, POS requires a minimum amount of coins in a secure wallet that is being put at ''Stake''. You can see this as a secure deposit which will be placed on a server to handle transactions of the cryptocurrencies of preference.

In return for handling these transactions and keeping your coins locked, you receive the transaction fees send to your wallet. Not only does this method of mining requires less electricity consumption, you also don't need to buy and setup a mining rig which can be replaced after a few years. Not to mention the difficulty rate that keeps increasing the more people are mining.

Sounds like a dream coming true. Setting up a machine that sends you free money on a regular basis would be the dream to anyone. But does it really work this way? And what are the true expectations?

Initial Scam offering.
With so many coins on the market nowadays (over 1500) one can assume that not every cryptocurrency will be alive in the next 5 - 10 years. Most of these projects tend to be DIY projects made in the comfort of a bedroom by a few enthusiast young programmers who will drown in the ocean of crypto if they don't receive an investment. That is why most of these coins decide to hold an ICO. These ICO's (Initial Coin Offerings) have been the biggest frustration of many involved in the crypto world. By buying the coins before they launch the platform, the team behind the coin tries to raise as much funds possible in order to run the project. As the summer of 2017 showed, most of these ICO's weren't really project but straight up pump and dumps. As soon as enough people had invested into the project and the coin had a certain price (i.e.''Pumped'') the people behind the coin sold all their coins never to be heard from again. This would result in a plunge in the value of the coin (so called ''Dump'') and a lot of disillusioned investors.

Trust issues.
Does this mean that there are no Masternode coins that can be trusted? On the contrary. big players in the Crypto masternode market like Dash (DASH), Zcoin (XZC), PIVX and Ion (ION) are showing that it is certainly possible to create a secure environment to setup masternodes and receive coins that are actually worth something. Coins such as SmartCash, have already over 14,000 Masternodes setup worldwide. This means that this coin not only gets big support from the community, it also shows it is safer and more stable than the smaller projects.

Not for everyone?
Can anyone setup a Masternode? Not really. Unless you know a thing or two about coding and have the required funds to put your coins at ''Stake'' (Masternodes require a minimum amount of coins), chances are that you won't be able to set one up. That is why companies like VTXBuilder offer the full service. They setup the masternode and obtain the required amount of coins, maintain the servers and convert the currency back into Bitcoin in order to send it to a customer. Depending on the amount of Masternodes, the rewards can easily reach $200 worth in Bitcoin each month.

Conclusion.
Masternodes can be a profitable investment if you know what to look for. Many scam projects, lots of hours on end coding and having the patience to keep the Masternode running no matter what the current bear market does is not easy. That is why we recommend you to get in touch with a professional company. If you know C++ , then you can always set one up yourself. For all the other people who want to get involved in the world of Cryptocurrencies, having a Masternode is much easier than having a mining rig at home.

VTXBuilder provides Masternode Setup Services. In a time where the Blockchain can help so many industries, VTXBuilder tries to assist people with generating a true passive income by setting up a Masternode.

Dimitar Hadzjkotcev 55 entrance V
1421 Sofia,
Sofia, Bulgaria

This release was published on openPR.