Each cryptocurrency investor has its own strategy for work during the rising and falling of the market. Some invest in the ICO and await the recovery of the market; some are doing day trading, and part of investing in masternode.
Dash is the most popular cryptocurrency for masternode. When the cryptocurrency was worth just a dollar per unit, the developers abandoned the model of the proof-of-work and introduced a system of proof bets.
This scheme has been extremely successful, both in terms of network management, and as investment for the people who invested in masternode. Especially during the rise of cryptocurrencies in 2017. At the peak of prices was necessary to invest 1.5 million dollars in the Dash in order to create your own masternode.
Read also – How to earn cryptocurrency: an introduction to masternode
Thanks to this success, many other cryptocurrencies have decided to copy this model. But unlike Dash, which is at least the minimum demand in real life, most of these cryptocurrencies are absolutely useless as a means of payment.
The illustration below shows the top 10 coins that use the system mastered. Most of these volumes are virtually absent.
Crypto winter of 2018, with particularly negative impact on these investors. Peak prices on Dash was fixed at $ 1,580 per coin, and today it is trading at $ 320. Little-known coins still showed the worst results.
Although the cryptocurrency cannot be called fraudulent in its pure form, it is clear that work on such a scheme is profitable only in a bullish market.
Obviously, to maintain this scheme in the operating state, the cryptocurrency should be used for something other than investment. So developers is extremely important to focus on making their own cryptocurrency and to pursue its use in the Commission of transfers, P2P payments, etc., and not to enter system mathsrand and hope that people will start using this cryptocurrency. Newer projects, such as the Origin Protocol, Dadi, Essentia, REMME and Zencash plan on adding masternode in the future. But it is not the defining function, but only an addition to other, more useful functionality.