Ethereum 2.0 upgrade can bring staking that replaces mining by 2020
New staking projects appeared in the past year
Because passive income and slow growth replace previous high speculative use, staking coins may return to trend again.
As the cryptocurrency industry matures, many services and innovations will appear that allows you to make the most of your assets. Similar to what savers and investors do in traditional finance, cryptocurrency holders can also make their money work if they want to do more than HODL patiently.
Staking is nothing new in the cryptocurrency space, but this time, there is better infrastructure and more reliable projects.
The 2020 prediction comes from Alex Kruger and takes into account the success of Tezos (XTZ) so far.
2020 could be the year of staking, driven by Ethereum 2.0.
Market is likely overlooking its impact, because the upgrade is rather complex.
Take Tezos for example, $XTZ is +44% vs USD and +73% vs BTC since Coinbase introduced staking this month.https://t.co/DKSr438iZE
— Alex Krüger (@krugermacro) November 30, 2019
Tezos (XTZ) seems to be immune to the recent crypto market slump, continuing its recovery from the past few weeks. XTZ has risen to $ 1.33 and is likely to signal a successful quarter.
The Tezos project provides reliable governance in the baking process. Moreover, Coinbase custodial services offer a more reliable source of passive XtZ.
The fact that passive income can be attracted to liquidity altcoins, manages to keep prices relatively stable, instead of a bunch of betting coins, as in the past.
Staking with Ethereum
The promising staking mechanism – ETH 2.0, will expand the Ethereum money storage. Currently, the passive income for ETH applies to programs like Maker, Compound, as well as exchange-based return programs provided by Binance.
Because ETH is still relatively stable, crypto‘s new utility is a source of passive income. However, staking also means at least some selling pressure because the reward is making money.
For Ethereum, staking that can replace mining awards is lowered, as the difficult time bomb still affects the network. Due to another delay in the exploitation of the “ice age”, Ethereum faced a dilemma when it moved to proof-of-stake in the usual way. Over the past three years, developers have voted multiple times to disable the difficult time bomb, so miners can get the time to look for block rewards.
But ETH is not the only currency to test staking. Other projects are revolving around providing passive income, including Chainlink (LINK), are booming recently.
Tezos “baking” grows on wider coin adoption
Currently, Tezos provides one of the most substantial passive annual incomes of 6.21% but combined with some inflation based on XTZ’s growing supply. Cosmos (ATOM) has an annual income of 8.52%. Some coins offer extremely high annual income, such as Livepeer at 78.6%. However, LTP is extremely volatile and has lost 60% of its value since August.
ETH betting still has ambiguous parameters, from betting a few ETH to thousands of coins. Currently, it is not clear what the reward will be, but the annual profit will be aimed at relatively low.
Bitcoin mining (BTC) is still a high equity activity with a major barrier to entry. However, the bet may be a less expensive mechanism for wider adoption. The only uncertainty about shares is access to real assets, as some currencies can be considered securities based on the provision of passive income as a form of dividends.
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