Topic: 3k to invest. Mining or Bitcoin (Read 2410 times)

I like this one.

Not everyone are cut out to start a business, and getting in to the mining game at this time feels like a waste of both time and money.

Order of choices:

1. Using 3k to start a BTC based business.

2. Buying BTC

...

77. Mining

Both are bad choices.

Buying BTC and just sitting on it is not productive. Do something productive with your money. Check out some of the investments available on the BTC-TC (https://btct.co/) and Bitfunder (https://bitfunder.com/) exchanges. Besides, just hoarding bitcoins exposes you to the volatility of the price. People that bought BTC last week are looking at their 10% loss and wondering if it was a mistake.

The last thing you want to dump money into is mining. Mining is no longer a simple business that anyone can make money doing. Mining is complex and it is expensive to get into. Mining is the last business that a newbie should consider. It is certainly a mistake to put any money into mining if you have never tried it before.

The best thing to do is to come up with something that you can do that people will pay your for. Be creative. Be innovative. It doesn't even have to be related to bitcoin if you allow payment using bitcoin.

The thing that makes me wonder about the usual advice about buying on a dip from temporary bad news is that it seems like an awful lot of people are planning to do that. If there is more money in people trying to buy on a dip then there is in speculators prone to panic-sell on bad news, then the dip never happens. Look at what happened on the blockchain split problem - it regained like 60% of the loss within a few hours, and all of it in 2 days. Just buying now might well be the thing to do. Or if you're going to try to buy on a dip, you probably ought to have your USD in an exchange now so you can react in minutes instead of days.

If I were you I would buy $3,000 worth of bitcoins immediately. Waiting for a dip could leave you waiting to buy at a much higher price. IMO bitcoins are incredibly undervalued right now, even though they are at an all-time high. The potential upside is tremendous and carries much less risk than setting up a business, as others have suggested. Most businesses fail.

Also, the suggestions to just buy $100 or $200 every day or every week are also mistaken IMO. The direction of the price of bitcoin for the near and medium term is most likely up, the longer you wait the more likely you'll buy in at a higher price down the road. IMO Dollar-cost averaging is for when you don't have all the money available at the moment, which you do.


I'm not well-versed in the economics of mining, but there are plenty of threads around here where people asked similar buying questions at $5, $29, and at $35 etc etc...



I would agree with the suggestion to spend a few of them though, when you are able and can find something you need. In fact, converting as much of your fiat to bitcoin and then buying your needed everyday items with it as much as possible would be a large step towards financial freedom and would also help promote bitcoin, imo.

https://en.bitcoin.it/wiki/Trade



Of course, we could use more miners too to help keep the network power decentralized, so who knows.

I think I know what you're getting at. I need some drugs.
 Naa joke. Thank you for the alternative path, I will have to have a proper think about this.

My opinion? Give a little amount for mining and buy bitcoins with the rest.
You never know when luck hit you

this is why instead of just investing £3k in coins to hoard by buying through blockchain.info/bitinstant at a 5% loss due to their fee's (which is atleast a £150 chunk loss). forcing you to hold for a 6%+ rise just to break even.

if you bought £3k of stock. then you sell it at the market price at the 10 minute interval the customer is at the checkout stage, with added profit margin ontop of course. which if you convert 100% back to fiat the same day through bitpay would mean you have more then £3k purely on the profit margin of product selling.

or then hoarding the coins means your already in profit.

or just convert the % of coins that would get you your £3k and leave the profit margin as coins, so the coins have cost you nothing. Thus rinse and repeating the process to get essentially free coins while keeping £3k as physical stock/fiat to counter the daily price swings.

ditto. Although we are in a bubble I believe its only a matter of time until it reaches $100, so buying in now is not bad but you should wait for this bubble to pop to ~$52 again.

Thats the fucking thorn in my side. I had this in savings back then, but couldn't convince my parents to let me invest (was in their name). At least I could buy £40 worth. Now worth just over £3000, but could have been a hell of a lot richer.

Who is to say we are at the peak, it's a new technology which is less than 5 years old, I really doubt we're even close to seeing Bitcoin peak.

In terms of investment I think buying the coin is a smart move, my brother has almost doubled his £100 investment in BTC which is now worth £170 in just a few weeks, I know thats because the price has gone crazy lately but who's to say it wont continue to

Buying at the peak of a market is dumb, if you bought down at $2 would have been a different story

I would recommend just buying $100 per month in BTC (possibly $25 a week)

And invest in hardware when and if the prices crashes. (I'd give this strategy an 18 month window.)

+1

thats the smart plan. buy $3k of stock and sell it for bitcoin, whether its T-shirts, mugs, gaming equipment etc.
which is the best and cheapest method into bitcoin as it gives you coin, and at a profit percentage, compared to buying through exchanges like bitinstant at an initial 4-6% loss. then keep profit and use x% to sell for fiat and rebuy more stock.(if you chose to continue increasing investments)
you will rake in more income then mining plus with bitcoin rises you wont have to cash out as much each time, and the % you decide to keep as coin becomes worth more.

and if there was a mega price drop. then merchant tools would auto adjust at the 'checkout' section to ensure that you get more coin for the dollar value of the stock you sell.

EG today you will get one coin for over $65 dollars of stock. but if tomorrow the price dropped to $12each you would get over 5 coins for the same stock amount.

Buy.

You won't even see an ASIC for six months if you order one now.  And by then all your careful ROI calculations will be irrelevant at some insane difficulty level.

Just buy and hold and spend.  Spending supports the network just as well - if not better, at the moment - as mining.

Simple plan:  every time you want to buy something that costs $100, buy $200 worth of bitcoin, spend half on what you want, and put the other half into a cold wallet far, far away.

I don't think I understand.  Many people have made a lot of profit mining.  When mining went from CPU to GPU, the difficulty increased dramatically, but many people still made quite a bit of money mining and hoarding.  Both buying coins and mining are speculative, but with mining, the price you're buying at is power cost and investment cost, and the investment cost per coin drops every time you make more.  Pure speculation means locking in today's prices, which are near all-time highs.  I think I would wait and see what the prices do, and then buy bitcoins on a dip as well as putting in a preorder for an ASIC (probably BFL because Avalon forgot how to set prices properly).  That way, you're able to play both games, and both games are fun.

I wouldn't use that money on speculation unless you really know what you're doing and can accept the risk, or mining for that matter, I'd just set up a business that accepts Bitcoins.

BUY BITCOINS.

Mining wont make you any profit, when the difficulty gehts higher and higher. even not with asics

mining is small steady income while buying btc can give you much more and faster income ... or loss if you sell it in wrong moment.

So I have 3k to invest. How would you suggest I invest it? Straight up bitcoin or perhaps some mining hardware? I've not mined before but I like the idea of a little box mining away.