Post
Topic
Board Announcements (Altcoins)
Re: [ANN][DASH] Dash (dash.org) | First Self-Funding Self-Governing Crypto Currency
by
HinnomTX
on 03/06/2016, 19:52:05 UTC
But those whales are investing and risking a commensurately "larger" sum in order to obtain that "faster" interest. Whats the difference, economically?  The opportunity and risk is there for any size investor.  How is that different than large miners who reinvest their bitcoins into more mining rigs to get more bitcoins?  They can accumulate the funds necessary to buy new rigs earlier than the small miner, which in turn allows them to be "faster" at finding blocks while the small miner stays the same.
I see your point. But let's focus on DASH mining for a sec. Mining expenses completely eclipse masternode expenses for a given DASH reward. In mining, you have mining hardware costs, electricity costs, periodic hardware upgrades, plus the occasional fire extinguisher. Your competition (i.e. hash rate coming online somewhere else in the world, possibly with free electricity) is theoretically unlimited. Versus masternodes, which after the initial capital investment, cost $3-$10 per month to maintain, do not require capital intensive hardware upgrades (so far), and do not need a fire extinguisher on hand.  Grin  Your competition is limited to the maximum number of coins out / 1000 DASH, or about 6490 MNs.  In the long run, MNs have an advantage over miners.