The Power Of Passive Income
Millions of families around the world will be searching the term "passive income" as many are struggling to make ends meet. Having a passive income is really powerful especially when it is already set up and earning monthly.
Many in Crypto are looking for quick easy money and have no thought for 10 years time as they are all about the now. I know many would take a lump sum over a monthly payment even though they will most likely spend the lump sum.
20 years ago I was offered a lump sum payment in a settlement with a company I worked for and took the monthly payout. I knew that in the future the guaranteed monthly will be far more important than taking a lump sum. I have already received over 30% more than what the lump sum was. It was obviously very tempting as it would have not only paid off my mortgage, but would have paid off another property. Still I have no regrets as for me this was the right decision as having a guaranteed income each month no matter what happens gives you peace of mind.
Many families are searching and looking for a passive income stream right now as the financial pressure is very much on. Knowing we all have a solution sorted already has given us a head start as there are not many people around these days with extra income to invest into Crypto. With a recession looming there is going to big gaps in the wealth classes with those that have and those that have not. Having crypto will put you into the have category due to the earning potential we know that is available.
This is why I see Crypto portfolios coming into their own as the earning potential is massive. The term "passive" is not really telling the entire story as this will depend on what your needs are. If you are earning $1K monthly from Crypto staking that would be in the majority of countries been seen as passive income. In 5 years time that $1K would be worth far less due to the rapidly rise in the cost of living which is very much on everyone's radar.
The big difference from selling your portfolio against keeping your stake is that your portfolio should be 10 x or more valuable in 5 years time. 10x is the low end as we all know that can happen in no time. I think the Bitcoin and the Pizza story covers that quite well and why settling for an amount is always risky.
If Hive was $10 next year how many users would sell and how many would be happy to just continue on like nothing has changed. I know many who would continue on and I am sure some would power down as they would rather have the lump sum payout. Personally I just see it as selling yourself short as the value is the stake and not the monetary value. The values we see now will be dwarfed by what is still coming and this will be like another pizza moment.
The stake generates the passive income and once you remove that stake growth would be that much harder as there is no hiding Hive from the masses when Hive is at $10. I do understand both sides as for many a $10 Hive would be life changing if they cashed out but for how long?
Having stake in the projects you have selected earning monthly has to be the safest option as the Crypto industry is still so early. The thought of mass adoption and selling out doesn't make sense financially as this is what is going to make you financially free forever.
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