??? Crypto Questions #5 - What is a Masternode and why should I care ???
So what is a Masternode ?
Today i would like to talk about Masternodes, more specifically, PIVX Masternodes and why i am considering investing in one.
So What is a masternode? In short Masternodes are nodes running the same wallet software on the same blockchain to provide extra services to the network. In Pivx's case these include;
- Anonymization increased privacy of transactions
- Instant transactions
- A decentralized governance
- A decentralized budgeting system
- Immutable proposal and voting systems
All of this is very good for a Cryptocurrency like PIVX, but whats in it for me ?
Well as a masternode holder you get rewarded for providing the above services to the network in the form of PIVX.
You can find out exactly how all of this works best on their website here so i wont go in to the technicalities here. I will however, say that setting up a masternode does not look like the easiest of tasks. Although, i may be wrong, and kinda hope i am since i want to own one.
How much will it cost ???
Well right now at market prices of ~ $1.90 the 10,000 PIVX your going to need in order to own a masternode will set you back about $19,000 which is , a lot ! But what can you earn ?
There's a handy website where you can work that out here !
As you can see at current market prices that nets you around 50 PIVX or ~$95 per month which isn't very much for your $19k investment, but remember this is a long term investment. What happens if PIVX continues the way that it is ? in my opinion this could worth anywhere from 10-50x in the long run. I wrote a bit more into why and how i came to this conclusion in a previous post you can check out if you want.
Lets look at my conservative estimate of 10x gains. Well your $19k initial investment for 10k PIVX is now worth a cool $190,000 and the $95 monthly earnings are now a more respectable $950 per month, and all for doing nothing because once the masternode has been configured, there seems to be little maintenance involved.
Iet me know if you have a masternode and if you would recommend owning one.
Rob.
