Bitcoin is not a good source for passive income
When it comes to crypto, many investors look for passive income opportunities. But most people start with Bitcoin as their first-ever investment. The main reason is that they believe in Bitcoin and also bitcoin is the most popular cryptocurrency. If someone would like to grow their invested asset, Bitcoin investment alone may not be the right thing to do. We don't get any perks for holding Bitcoin or staking Bitcoin. There are some use cases out there for Bitcoin but they are not significant enough to give any passive income.
No staking rewards in Bitcoin
The staking reward is a popular terminology in crypto and many people look for staking rewards. We have a very good staking rewards model in Hive. The rewards are available both for HBD as well as Hive. Even if we don't do anything, we can make our assets grow. This is what is expected from people who would like to have staking rewards.
If people would like to hold Bitcoin, they can still hold it but they may not be able to get any returns out of it unless they trade Bitcoin by purchasing it low and selling it high and keep doing the same based on market movement. Otherwise, there is no on-chain functionality to get staking rewards.
There are a few staking reward options available but mostly they are all centralized solutions. Unlike how we have a decentralized savings option in Hive for HBD, there are no on-chain decentralized staking rewards for Bitcoin. This can be widely accepted as one of the reasons why Bitcoin cannot be a good source of passive income generation.
Bitcoin is more like a pride coin
People hold Bitcoin for price. Of course, if you look at history, there is evident proof that Bitcoin had a considerable increase in price in several years now. There is also a high possibility that this would even go further and grow in the coming years too. That's why people try to get hold of Bitcoin right now and keep them safe for several years. Mostly they forget about Bitcoin or have that as their family asset.
Some people don't expect any passive income from Bitcoin. They just hold it even if there is no use case for the same. We have thousands of other cryptocurrencies out there but people would still want to buy Bitcoin because it was the first cryptocurrency. This is the pride they want. With the limited supply of Bitcoin, the price of Bitcoin would also keep going high steadily. People would like to keep that as it is even if it doesn't generate any passive income for them.
Bitcoin good for trading
Bitcoin still has the power to move the price of other cryptocurrenices in the market. With that great influence, it is still considered the first cryptocurrency to be traded with a huge market cap in the exchanges. This is one of the reasons why someone can say that the demand for Bitcoin would always be there. People look at the market situation, buy Bitcoin and sell them for a better price. As this is more comfortable and safe, maybe the focus on passive income is no longe required at all.
People who are new to crypto don't understand that there are 1000 or better cryptocurrenices out there that have other types of rewards for just holding the cryptocurrency. Some even give options to grow the investment with some additional investment of our time and energy. Compared with those coins that generate passive income for investors, Bitcoin is sure not the cryptocurrency that gives passive income to people.
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Bitcoin have a first mover advantage nothing else, Bitcoin value is totally based on supply and demand not it's use cases
Yes indeed the market moves only based on supply and demand.
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Still most people prefer btc first for their invest in crypto. If this trend goes off, stackers may suffer holding it. Yeah surely hive and others crypto currencies have more benefit to stake in it. This is surely a good source of passive income.
Yeah along with staking, some cryptocurrencies also provide other opportunities and use cases.
You make a good point. I totally agree that Bitcoin has also become a pride coin in which people hold to be part of the legacy. When it comes to investments, Bitcoin is one dimensional imo, it can't do much. Maybe that could change in the future when there are more advanced Dapps.
Of course I would agree with you on Bitcoin has no staking, but one advantage is that if the price goes down, it goes back up. At this time people have a very good offer to put money on a hive because the way it was seen above $3 in the previous bull market it will comfortably look to go five to seven away. Staking is the only way a person can make more profit in crypto.
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When you stake your BTC in a third party. You risk never seeing your BTC again. Not your keys, not your BTC!
Yes absolutely true. Some offers there can be very attractive but they may not be efficient. High risk of losing our crypto.