How can you calculate risk/reward for a MN, assuming you're about to buy now? What price are you expecting to bail assuming the market won't listen to you?
If you have a MN already, one can probably want more and will be mining to increase his holdings, since mining rig will cost way less than MN.
Is MN to profitable? 9,5% per year for providing a service and risking a lot of money isn't much. And it was calculated to be not that much profitable in the future. If everything goes fine, than you will need your vps to be a beast costing like $100/month or even more. Who knows what price of Dash would be then.
Ok, maybe I am really totally misunderstanding something, so please bare with me...
Let`s say I have around 15K USD and I like DASH. I could now decide to either buy 1 MN or X11 Hashing Power.
I'm no mining expert, but I know that the probability of ROI in DASH with cloud mining is low.
With the MN, I know my entry price and my return in DASH. I know I will never get below 1 K DASH (the collateral) and get X % reward.
With mining, I risk ending even below 1K DASH at the end. I might have a nice profit in USD if the DASH price in USD rises, but probably less than if I just had bought DASH instead of mining. It's similar in BTC, but there are no MNs with BTC.
If I am correct so far, I wonder who even mines DASH, because even if one has less USD than it takes for 1 MN, I'd still rather put that in MN shares with MooCowMoo or others than to mine.
I guess I am wrong, because people are actually mining DASH, but I don't understand why, when (at least to me), having a MN or fractions of it is so much better. MNs as an asset are imho the coolest thing in crypto currently, from an investment perspective.
So I was wondering, if there is a potential danger for the DASH network because Miners don't get rewarded enough compared to MN holders.
