As a miner, why do you mine rather than buy and hold?

Gasotard

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Quote from: Amph on January 04, 2017, 04:00:36 AM

the simple difference is that if you buy you will not have more bitcoin, but only more fiat in the case bitcoin go big

if you mine you will have more bitcoin, if you sell your equipments back at certain point

i would buy if the roi is very very long, otherwise it's better to mine, both have their risk

Mining is more risky.

YuginKadoya

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Quote from: Amph on January 04, 2017, 04:00:36 AM

the simple difference is that if you buy you will not have more bitcoin, but only more fiat in the case bitcoin go big

if you mine you will have more bitcoin, if you sell your equipments back at certain point

i would buy if the roi is very very long, otherwise it's better to mine, both have their risk

I think it will vary on the situation if the value of bitcoin are going low it is good to buy then wait for it to go sky rocket high so you can exchange it to fiat to claim bigger amount, but you can profit in mining if The biggest factors determining profitability are equipment costs, the price paid for electricity and the value of the bitcoin you mine. it is certain that it is good to mine because the price is high but it electric and equipment cost will still vary depending if you would ROI from it!

Amph

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the simple difference is that if you buy you will not have more bitcoin, but only more fiat in the case bitcoin go big

if you mine you will have more bitcoin, if you sell your equipments back at certain point

i would buy if the roi is very very long, otherwise it's better to mine, both have their risk

spazzdla

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Quote from: Eric Mu on December 04, 2016, 07:51:29 PM

I constantly get told that it makes more sense to buy and hold than mine yourself - wondering what is your experience as miners.

I mined/mine.. it would of been better to buy and hold on the first batch I bought the second I would of done well.

One needs cheap power and a tech know how.

I keep mining because I am using low power draw ASICs and I like to say I am mining hehe.

Soros Shorts

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For heating. I have 2 x S9's heating my basement and 1 x S9 heating my attic. The circulating air keeps moisture away too. Grin

lOvE mE forEvEr

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I am currently doing both, when the prices are very high, certainly bitcoin I will sell to the maintenance costs of mining. But when the price is low, I think I will buy. Bitcoin price will reach $1.000, I should be able to hold for quite a long time, for the cost of maintenance I got from a loan to a friend.

Exoskeleton

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In my opinion its a good idea to mine at least a portion of your coins instead of buying them from miners. If you compete for the coins with them you help to drive up the cost of a coin which does increase the price no matter what anybody tells you otherwise.

JANGKRIK BOSS

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With mining I can produce a bitcoin without having affected the current high prices, the price of the bitcoin has reached $800, if it is too expensive for me to buy. I would like to hold bitcoin, but to pay maintenance cost I must sale my bitcoin.

QuintLeo

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For folks with a low cost of electric, it's usually a LOT more profitable to mine with and lower risk vs buy and hold.

I'd HATE to have been one of those folks that bought at the Bitcoin peak when it was well over $1000 - they STILL haven't recouped their investment after years....

On the other hand, buy in when it was in the under $300 range would have been pretty profitable at this point.

Raimonn

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I stoped mining bitcoins because the scaling on difficulty made my hardware outdated, i bought a bit more on bitcoins and now i hold them. I would like to mine again (if i find a cheap second hand miner) but electricity cost on my country make it near impossible.

btczar

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Quote from: Eric Mu on December 04, 2016, 07:51:29 PM

I constantly get told that it makes more sense to buy and hold than mine yourself - wondering what is your experience as miners.

I stopped mining with my own hardware when I saw that I would be in possession of much more bitcoin than I had, if I had just kept it, instead of risking it with mining. Yes I eventually got my ROI, in terms of the value of the miners when bought vs the value of the bitcoin I mined, but the total amount of BTC used to buy, vs the total amount of BTC mined, was not always correct. I got ROI many times on the fiat value, but not always on the BTC value. Now I only hold....but I am always looking to see if its still possible to make a profit mining again...

YuginKadoya

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There are many people that are buying and holding bitcoin than mining it because of the hard time yo need to accumulate while mining, the Rigs are very expensive, the electric cost you can make with just one miner, problem with space and place you should put it, the noise it emits will certainly cause neighbor disturbance Whether conditions and the internet speed issues in your country that is why it is better for other people in buying and waiting for the value to sky rocket,

But the best part in mining if you consider the said problems above and you got some capital in buying your Rigs, no electricity cost, great place with no neighbors to disrupt and a great internet speed then you can surely ROI and had an ongoing bitcoin production.

leowonderful

legendary

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Bitcoin FTW!

It's more fun in my opinion and you can use miners for lottery mining after you hit roi. You also get decent resell for your miners after you decide you don't want them anymore. Holding is pretty boring and takes time.

Zadicar

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Cashback 15%

Quote from: Eric Mu on December 04, 2016, 07:51:29 PM

I constantly get told that it makes more sense to buy and hold than mine yourself - wondering what is your experience as miners.

There are really people would like to mine since they have the capacity to put investments on it and even some are always claiming that mining isnt profitable already people would still continue because they treat it just like a hobby and would like to experience mining and dont like to purchase bitcoin itself.

MCWey8

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[ Poor Miner ]

For the blinkenlights !

IT pro, homelabber .. like having networked hardware, servers, switches, kinda a natural progression to mining.

target

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i do not mine myself but if i have the miner i would i just don't have the access to buy asic devices. mining it a lot profitable, they can mine and hold. its better than buying and hold.

DimensionZ

sr. member

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Shit, did I leave the stove on?

Some people mine for the experience and because they find it fun even though it's not as profitable as buying cryptos and holding until the price is right. I haven't used desktop computers for more than a decade and when I found out about Bitcoin I tried to figure out mining on my own and tried some on an AMD-based laptop I had at the time. I wasn't in it for the money but for the experience and to understand how things worked. I guess most of the casual miners are like that.

socks435

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Privacy is always important

I think it is depends if you have lots of money to buy bitcoins but it takes long time that you can gain a profit and it is risky because there is no assurance that the price will keep increase.. so for me it is better to mine bitcoins than buy and hold..
Because you can gain a bitcoin and you can save it for a long time. or sell it in the right time that can gives you more profit while you are holding..
Also you can gain more profit that get your capital back in mining..

veleten

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Activity: 2016

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buying and holding is easier,more profitable and generally recommended for the ones who are relatively new to mining and bitcoin in general
but there is a particular group of people who mine not only for profit
it is a sort of a hobby,opportunity to be a part of the community etc.
a friend of mine runs an s5 with 0.08 cents/kWh electricity tariff,not sure he is getting any return after electricity costs
when asked why the hell,he simply answered because I want to be a bitcoin miner

xuan87

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mining used to be a very profitable but after the halving it is really difficult to earn and beside of that we need to know every possible way to earn bitcoin, it used to be more profitable in mining rather than buy and hold, but now it is better to buy and hold, it is easier

Topic: As a miner, why do you mine rather than buy and hold? (Read 2335 times)