Psychology of Dollars, Sense and the Gin Platform
Growing up in upper class suburbia spoils one with experience to many of life’s guilty pleasures at a young age. Million dollar houses lined on golf courses with fairway views so pristine they leave the makeshift imagery cut from a custom picture frame. The task to attain such a financially free lifestyle seems daunting and without script.
Just how do the world’s one percent become the worlds one percent?
The Ethos of the One Percent
“Our only limitations are those we setup in our own minds.” -Napoleon Hill
Simply put, the one percent think different. One of the most acclaimed authors of the 20th century, Napoleon Hill, hits the nail on the head with his take on the human subconscious. While many of us, in particular millennials, are focused on our looks, likes on Instagram posts and Friday night adventures there is often one thing missing: self-awareness. Having an understanding of knowing what you think, why you think it and being cognizant of your natural instinctive mannerisms is a special characteristic not present in many of us. The one percent learn where they are efficient, what they excel at and where they need to improve. More importantly the one percent act upon this information instead of “starting tomorrow.” The one percent have a knack for being contrarian, getting in before the herd and being okay with risk while understanding how to mitigate risk at the same time. The one percent don’t say to themselves “I can’t afford this” they say “how can I afford this?” invoking creative thought instead of dismissing an opportunity. The one percent are forever curious, ask questions, always growing and keep pushing. Self-doubt isn’t something the one percent are familiar with.
So how does your ethos, or mindset, relate to more dollars in your pocket?
The Cash-Flow Code
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for” -Robert Kiyosaki
Kiyosaki, one of the most prolific business enthusiasts and entrepreneurs of the last quarter century often pushes the narrative that the difference between the rich and middle class is simply controlling the ever emotional balance of cash-flow and understanding the difference between assets and liabilities. An asset as the diagram details from Kiyosaki’s book Rich Dad Poor Dad is traditionally considered an investment in real estate, stocks, bonds, paper notes and intellectual property. An asset is anything that puts money into your pocket while a liability is just the opposite. Liabilities take money from your pocket and are largely made up of commercially desired luxuries. Examples of liabilities are your mortgage, car payment, credit card debt and fresh Gucci handbags. The rich generate passive income while building their asset column first and enjoying luxuries last which works counter to the middle class. Promotion at work, inheritance, winning trade the middle class is likely to reach for the new car, house and shirt instead of asking themselves how the money they’re about to spend is putting money in their pocket? The rich, as Kiyosaki explains simply do not work for money they have money work for them by investing in passive income generating assets.
So what generates passive income? Which of these assets do the rich traditionally invest in while not having to work 9–5 to generate consistent dollars in their pocket? Unsurprisingly, most of these wealth generators are right under our own noses: dividend yielding stocks, rental income, certificate of deposits (CD’s) interest, bonds and royalties are frequent norms. Tactically understanding current market trends within each assets market requires an even further look.
Looking at today’s financial environment concisely with the seemingly endless sunny cycle that has highlighted much of the past decade one may wonder how much longer the financial boom will last? Equity valuations are near all-time highs, yields near all-time lows, real estate valuations have skyrocketed, unemployment is at its lowest levels in over 20 years and companies have never had more cash. Investors are now facing a low interest rate environment following a long bull run in stocks which limits potential portfolio returns moving forward. Several economists in recent months have all but stated its not a matter of if but a matter of when we see another economic recession. While investors are considering whether to actively prepare for the impending storm or accumulate winnings while they have the chance one may ask where can you find value in passive income generating assets today?
What if.. there was a new maturing asset class upon which a robust passive income generating platform was built staring right at us through our computer screens?
The E-Cash Revolution
“The one thing that’s missing, but that will soon be developed, is a reliable e-cash a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.” -Milton Friedman
One of the most influential economists of the 20th Century and winner of the 1976 Noble Prize in Economic Sciences Milton Friedman predicted the rise of e-cash (electronic cash) all the way back in 1999. The narrative Friedman articulated came to fruition almost a decade later into what we know today as…. bitcoin.
Created shortly following the 2008 financial collapse by pseudonymous creator Satoshi Nakamoto bitcoin was created as a digital, open-sourced peer-to-peer currency whose transactions are not controlled by any one single authority. Bitcoin’s transactions are verified by network nodes through mining cryptography and recorded on a public distributed ledger known as the blockchain. Only 2 years later the first altcoin (alternative to bitcoin) Namecoin was born and today more than 2,000 cryptocurrencies are in circulation. Since its genesis block almost 10 years ago bitcoin and cryptocurrencies have been lauded for their wealth creation, critiqued for their volatility and through it all has seen their potential adoption go from pipe dream to more of a reality with each passing day.
Today there are two popular forms of consensus algorithms for mining cryptography blocks and transaction named proof-of-work and proof-of-stake.
Proof-of-work (POW) algorithm, as the pioneering transaction validation consensus bitcoin uses which is a computing power-based system requiring competing users to solve difficult mathematical problems to validate transactions. While proof-of-work is considered a decentralized way of securing the network it isn’t without drawbacks. Proof-of-work is ever increasingly resource heavy with considerable electricity requirements incurring a high level of cost for participants while also being susceptible to 51% network attacks putting smaller networks more at risk. Proof-of-stake (POS) algorithm, if proof-of-work is based on computing power, proof-of-stake procures from the actual holding of cryptocurrency. Created as an alternative to proof-of-work, with proof-of-stake there is no mathematical puzzle to solve and only requires the core wallet to be on and open 24/7 to mine transactions based on a participants holding percentage without any additional resources saving substantial electricity costs. A disadvantage of proof-of-stake is the threat in smaller networks of major stakeholders having the technical ability to make changes creating a centralized network.
Additionally, there is a newer transaction authenticating method gaining steam in 2018.. Proof-of-service (PoSe) or Masternodes.
Masternodes. The name alone sounds exciting, but lets dive in!
On January 14th 2014 Evan Duffield, a developer from Arizona, released a new coin, Xcoin, with the aim of creating a currency that permitted very fast transactions that could be untraceable. Shortly after Xcoin’s tumulus release it was rebranded into Darkcoin and only a year later into what we know today as Dash. Dash, short for digital-cash, became the pioneering cryptocurrency to use a proof-of-service network which requires two tiers of networks. The first tier consists of a network of miners to achieve a distributed consensus on the blockchain (proof-of-work is used by Dash but proof-of-stake pairing came along with the creation of PIVX). The second tier is a network of masternodes which bring several features including InstaSend and governance voting rights.
Setup, Benefits and Workings of Masternodes
To begin, why would anyone want to run a masternode in the first place? Most masternodes require an upfront capital requirement to attain the collateral needed which works in hand to decentralize the network and from there are rewarded with an incentive for verifying transactions on the network in real time. The rewards received then are credited to the users wallet in a form of passive income.
The first step in setting up a masternode is acquiring the collateral to do so on an exchange and sending the coins to the cryptocurrencies desktop wallet. The reason for this is to ensure the participant has a vested interest in maintaining the network. Dash for example requires 1000 Dash to run a Dash masternode which is currently valued at over $140k USD as of November 15th 2018. Next, the user needs to create a collateral address to setup the node and synchronize their computer with the blockchain. This address is also the one which gets credited rewards for supporting the network. Lastly, a user needs to have their own personal server or rent out their own virtual private server (VPS) in order for the masternode to be operational. The latter option (renting a VPS) is most preferable given that the server needs to be online 24/7 which allows users the freedom to turn off their own computers.
Sounds like a handful, right?
Traditionally speaking setting up and maintaining a masternode took a level of tech knowledge and skill that was only available to a small percentage of users inside the crypto-sphere.
That narrative forever changed on February 23rd, 2018.
The Passive Income Machine.
The Gin Platform as best explained by lead architect and co-founder Dragos Badea is “a one stop shop for creating and managing blockchain infrastructure that renders passive income.” Simply put, the Gin Platform takes the tech out of setting up and maintaining masternodes while only requiring as little as 3–4 clicks with a copy and paste to make a masternode operational. Additionally, the platform provides 24/7 support, an investor portfolio dashboard as well as updating members nodes as different updates occur (a painful, time consuming process when owning several masternodes and choosing to self-host).
Gin Platform chooses to invoice in Gincoin which is traded on the open market through buying, selling and mining. Gincoin’s main utility feature is payment for GIN Platform however, given its best in class tokenomics, the coin has its own universe of crypto investors and in time could develop new utilities.
Gin Platform offers two types of nodes members can choose from to host their masternodes Dedicated Node ($12.60 per month) or Cloud Node ($4.50 per month). More detailed information on each can be found here.
As of November 21th, 2018 there are more than 110 different masternode projects available to host on the Gin Platform with currently more than 5,550 active masternodes online.
The London established company has a team of more than 13 active members with its founders having a wealth of entrepreneurial experience founding several successful IT related ventures including SipStatus, a $100 million dollar wholesale telecom company.
Platform questions? Gin Platform Ltd. can be reached at email@example.com
In the ever changing global economy through much of the last quarter century consumers and investors have changed in a multitude of ways. The average consumer today is much more cerebral now compared to 25 years ago, with the power to search billions of pages of information and find almost anything in less than a second. Investors and consumers can now also view products, compare prices, make purchases and buy tickets without ever leaving their couch. One thing still hasn’t changed. The rich get richer and the poor get… well you know the saying.
Financial literacy is something that is still grossly overlooked in our society today. The basics are not ingrained into our youth leaving many to grow up and live lifestyles they simply cannot afford. If you cannot already tell one of the motivations of writing this article was to put financial literacy at the forefront of the conversation.
Wealth creation is done through building companies, investing in assets and generating passive income prior to divulging in luxuries. With traditional assets peaking and the newly minted e-cash (bitcoin) in the midst of a deep bear market what are some ways you are looking to generate passive income given the global economic challenges?
Masternodes and the Gin Platform are a worthy talking point of consideration.
After all the one percent think different….. and you can too.