Please note that this is just my personal opinion and not financial advise. I'm not a financial advisor and I don't play one on the internet.
Rich Dad Poor Dad was my first exposure to the producer mindset and paved the way for turning my cash flow into long-term wealth.
To summarise the core concept, the book explains that you need to own more income generating assets like a stock that pays out dividends, a cashflow business or a rental property and fewer liabilities like the home you live in or your car.
Ever since I read that book when I was 16, I've been fascinated by accumulating assets so that I can spend on liabilities without having to work a lot more.
The majority of my asset classes have been cashflow businesses that I've built from the ground up and affiliate websites that I either buy or make both things that I can directly control.
However, it's only now that I'm looking towards a new Cryptocurrencies and the blockchain industry in itself have quite rapidly developed a very recent, under-appreciated income-generating asset class of Masternodes.
What are Masternodes?
Masternodes are fundamentally servers that keep an active copy of the whole blockchain and help in making the transactions over the network more secure, private and faster.
In return for this service, Masternode holders get a share of rewards generated from each block.
While It has been called just another Ponzi scheme because of the bad actors that exist in any asset class. If you do your research before investing in a project regardless of whether it supports Masternodes or not, there are early-stage opportunities, backed by strong, committed teams with the intention of developing a better ecosystem for everyone involved.
Dash and PIVX are both strong projects that fit the profile, but comparatively, they're more established than my liking. The 7% ROI is barely better than holding a savings account, and I would much rat her put the money back into my existing asset classes.
However, I did find one project that was at just the right point in their journey for entry, have a solid foundation, a strong team and plans that I believe will make a dent in their goal of becoming a 100% privacy centred cryptocurrency.
Bulwark is a PIVX fork, built on the shoulders of giants like Bitcoin, Dash and PIVX and is changing the game when it comes to privacy coins with the ground up approach to making the infrastructure with both hardware and code to develop a privacy-focused ecosystem.
Here's how not to pick a project…Positive Price Action
I see a lot of people valuing projects from their positive price action, and I see the same people getting burnt.
We have to understand that the current market price is all sentiment and shows little to do with the actual progress of the project. You'll see this with any project where you care to dive in a little deeper.
Take EOS for example,
It launched at $1, quickly shot up to $4 due to the hype and then fell back to under $1 for a long time before shooting back up to $20.
Did the premise of the project change at any time? From their inception to almost 8 months later when their price reached an ATH, nothing much had changed regarding an actual product being shipped. It was all market sentiment.
So instead of following the herd, it pays to research the project, the team and the future vision of the project as well as how likely it is for the team to actually ship the product they're promising.
Once the product has been shipped, the price action will follow since the sentiments are much likely to be positive towards the project.
This logic is what led me to invest in EOS when it was at $0.8, and this is the same sentiment that is driving me towards Bulwark as a solid project.
Here's why Bulwark makes a robust income-generating asset for my overall portfolio:
Fundamentals and Team
Since day one, I've been engaging with the team, checking in on their communication with the community, complete focus on the product development and complete lack of focus on the price action.
I find them to be just the team required for a fast moving crypto project, that is not afraid to switch gears and change directions if that's what's needed.
The Bulwark team focuses on developing the infrastructure that will make future adaptations either easier or irrelevant.
They follows a no-hype approach and rarely disclose the upcoming features until they're released.
I see a lot of projects do a random partnership or hyped-up feature announcements just for the sake of price action, which is a big red flag for me.
While the Bulwark team is working hard at the backend, their no-hype approach makes it seem like there's little to no future planning to the general community.
This paradigm is destroyed as soon as you read their whitepaper where they've detailed the release of privacy-focused hardware, a hardware wallet and a more community-driven cryptocurrency with the focus on fair distribution of value.
Let's Talk Numbers
While these were the core values that got me interested. The numbers aren't shabby at all.
Holding a bulwark Masternode right now will cost you around $3700 with an annual ROI of 150%.
It might seem like too good to be true, but it's not. The reward premium is high compared to the likes of Dash and PIVX because the risk premium is significantly higher as well.
That's is why it's imperative to do your research with low market cap projects like these because the risk of losing your investment is VERY real.
The ROI is bound to drop significantly as the project holds ground, builds up a more significant community, more masternodes show up.
I currently have a few Masternodes which is generating passive income every single day.
I can take that value out to invest in other projects, collect another Masternode and get those coins to work for me or pay for the liabilities I like to accumulate.
How much would that translate to when the price action reverses, or the project starts to pick up adoption? Only time will tell.
However, for now, it's one of the riskiest and most profitable asset classes in my portfolio.
It's just as risky as any other early stage crypto project like AELF or POLYMATH, however, my price of entry keeps on reducing as time goes on.
Think about it.