Crypto Evolved and Wealth Can Be Achieved By Masses
When I started in crypto way back in 2011 there was one crypto and it was bitcoin. You could at the time mine it and if you held long term you'd be in a rather sweet spot right now. I remember my r9 290x acting as a heater and my CPU cranking and mining about 0.01 bitcoin per day. Yup! PER DAY! freakin wild right. At those times there was no ASIC miner and it wasn't well known. Bitcoin was around $100 - $300 in those days.
Fast forward just a bit and the invention of ASIC miners quickly changed all that. It was no longer profitable at all to mine bitcoin and later we got litecoin the silver to bitcoin. Both of these used the same POW system however so it was asic miners that won the day and honestly I believe that strongly centralized the system to groups with massive funds to fuel these projects for power and buying the ASIC miners.
Move forward a little more and Ethereum was born. I bought in on average of $13 each and that primarily could be mined through GPUs and not worry so much about ASIC miners. But even after a few years that changes as well to the point we are at today.
Sure if you got in early on these and mined way before it became something you'd be in a good spot if you held. The chances of that however are slim and so a new method was created.
POS (Proof Of Stake) Mining
Proof of stake is still one of my favorites. Sure there is still a substantial up front cost but it's a system that is ironed out and you know what's going to happen. Unlike a POW (Proof of work) system where hardware gets better, more expensive and more and more come online making things harder and harder a POS system you know how many tokens/coins are going to be created each day and what it's going to take to get your share. This is a number you can count on to most likely not change and so it does in fact give it a more even playing field in my opinion.
PoS also to me is the first DeFi. You staked tokens and run them on a machine with little power costs to help secure the network. In exchange you earned fees and newly minted coins. It essentially was/is passive income and the first form of it for crypto.
Fast forward to just a year ago and real passive income became possible in the form of DeFi. Essentially you become the bank and it's one hell of a powerful tool. No longer does the bank get that sweet 15% average return while giving you 0.05% on your hard earned money only giving you less and less buying power. Instead you now have the ability to beat that and in many cases such as CubDeFi 4x it or better! CubDeFi currently pays out a APR of around 70% on average from what I've seen. As long as token prices hold that means a $10,000 investment would earn you roughly $7,000 a year if the price of the token remained the same. Now that's freakin wild right!
This is a powerful tool I recommend all of you get involved with. Take some earnings and put them to work.
The next evolution to me is gaming and NFTs. These gaming NFTs hold value because they essentially mine the currency of the token that is used in the game in one way or another. These tokens have real world value as people want to level up and advance their miners, characters and decks. In fact one of the most passive ways to earn in gaming I have found recently would be that of Splinterlands Take your SPS tokens stake them and right now earn 105% which honestly outbeats many DeFi platforms themselves. These SPS staked tokens not only earn you more SPS which could be a form of passive income but they can also be used for aspects of the game such as discounts, vouchers, taking part in certain actions in the game and so on.
This just goes to show you the amount of passive income that can be generated right now is MASSIVE! If you're not taking part in these systems I fear you very well could be missing out.
*This article is for entertainment purposes only and not investment advice.