Sources of passive income for the "digital only" entrepreneur
The value of passive income for the digital entrepreneur
Making money in the digital space, if for instance the Internet, offers a lot of freedom. The perks can include not having a boss, not having a "real job", not dealing with glass ceilings whether due to gender, race, or social status. You gain a lot being a digital entrepreneur but you also gain new risks and one of these is the uncertainty of future income. One common solution to this problem is to diversify (spread your risks). You can diversify by developing multiple potential streams of income.
Who is making good money at the current time as a digital only entrepreneur?
We can see some examples of people who are making good money during this time, such as @jerrybanfield @craig-grant and @trevonjb. The way two of the three are making money is deemed controversial but they all are doing something right. What they all have is diversified income streams, as they all make digital income not only from blog posts on Steemit but elsewhere as well. What they also are doing right is they all have carefully developed their passive income streams. The other thing which I know Trevon and Craig do is they both have a deep understanding of "compound interest", and have a tendency to reinvest their winnings over and over, which according to mathematics is a method of generating compound interest. Eventually their investments will generate so much compound interest that they'll be able to live off that passive income from interest (in theory!).
What are some opportunities for passive income streams in crypto?
I was tipped off to recently to some of the platforms below which offer the functional equivalent of interest or dividends:
Neo, which offers a dividend in the form of Gas. Neo is similar to an Ethereum but with a sort of Proof of Stake dividend mechanism already running. This was tipped off to me by @ladycryptic.
POPULOUS, which is a lending platform which has potential. It's a bit risky but if you lend similar to how you would with BitConnect you can get interest. This is supposed to be the lending platform which the people claiming BitConnect is a scam endorse as "clear".
Peerplays, Peerplays is my personal favorite. It is a gambling platform which pays the functional equivalent to a dividend from the house. This is a model everyone is familiar with and offers yield to holders over time. I prefer this to BitConnect because I know the developers behind it and they have planned it since the Bitshares days.
There are probably many sources of passive income I'm missing here but I had to name just a few options. Steemit used to pay passive income but has become less useful for that and now is offering a different value.
Conclusion
Passive income is the one way to create income stability in a volatile market. There is a good reason why stock investors buy dividend stocks. Dividend stocks are income generators, and they are very stable for long term income generation. Hedge funds in my opinion will become decentralized at some point, and I think these hedge funds even if they only trade crypto, if they can offer 9% to 11% yield (what I deem to be the sweet spot), they will for sure attract massive amounts of money for long term holding. Interestingly enough, Enigma Catalyst seems to be working on something like this as we speak which is one reason I'm most excited about it, and for those who don't know Enigma is also going to be Proof of Stake so just holding the token is good enough once that is implemented.
I too am really excited about Enigma Catalyst, as well as the Enigma Protocol as a whole. As they say "data is the new oil".
Bitconnect has been getting a lot of attention lately but the main problem I have with it is the fact that I can't find definitive proof that the trading bot exists. I know based on my limited knowledge of algorithmic trading that it is indeed possible to generate risk free interest from volatility, but it's almost like a magic formula, it requires a lot of liquidity, and once the volatility is gone so is that risk free interest.
The magic formula for those who don't know is called the black scholes equation, which is the equation used by quants to generate risk free interest in volatile markets. The unique thing about Enigma Catalyst is anyone can set up a hedge fund which we can pool out money in which trades by bot, but with complete trust and cryptographic purity which we don't get with the opaque Bitconnect.
I have started investing through bitconnect , placing $1010 which stays in there for 1 year and you earn different interest on it everyday . In 8 days it has came to $93
I didn't say it doesn't make money, it's more no one knows if the bot is real. If the bot were proven to exist I would be all in on it but because I cannot see proof there is a bot then I'm not really sure. I know you can make this kind of money with algorithmic trading in this space due to the volatility of Bitcoin. But I don't like the fact that the bot is controlled by a centralized entity.
To do something like Bitconnect right the bot would have to be not controlled by anyone in particular. If you do trade off volatility eventually the volatility does end no matter how good your algorithmic trading is.
Personally I like Enigma Catalyst better. It will potentially be able to do the same kind of thing but in a cryptographically honest way. $1000 will not stay in there for 1 year though, more like some months. The problem is who knows if BitConnect will exist for that long, so if you want to gamble it might be worth it but it's a gamble.
I'm going to look into Enigma !
Thanks for sharing. I know about Bitconnect but is never inclined to join due to negative publicity. I will check out Populous and see if this is "safer" than the former. Upvoted your post as well.
RISE has been a good coin generating more coins for me. It's a DPoS blockchain platform that helps people develop their Dapps to launch on their platform. I've been getting coins every day for months from staking them.
enigma to me is a like agoras from an investment point of view, only that they will perform at quicker pace.