I see that more and more investors are interested in a passive income that comes from cryptocurrencies. But, I am a little bit afraid that all these concepts: staking, crypto lending, and all form of income that is generated from nothing will end up sooner or later. When you compare mining, you have to buy mining rigs at first, then you need to pay electricity, so you spent a lot of money to mine a Bitcoin and that makes it valuable. What about staking? What you sacrifice to receive new coins?
As far the basic economic formula, if you are getting the same token or coin as staking reward every week or month then the price of that coin is bound to fall because the coins will always be listed for sell and there would be more sellers than buyers or more supply than demand resulting in decrease in value. Only high volume, high transaction, highly used, high revenue generating coins like ethereum or btc can negate this effect because they are actually doing business and generating revenue everyday. For other coins this model do not seem sustainable.