Mining .vs buying in a bear market | Bitcointalksearch.org

Lantind

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Quote from: cydrix on April 19, 2023, 10:45:19 AM

Buying bitcoin has less risk than mining because having a miner requires maintenance, which can be more expensive, and power rate changes, but because you stated it's free then it's lucrative. Both mining and buying have various risk tolerances, and it relies on you what is your investment goal. The only issue I can see with purchasing bitcoin is that it does not directly provide income like mine does.

Basically both are equally good jobs to do, buying in a bear market and mining I don't think they differ significantly, just different levels of risk maybe. mining actually needs to pay attention to several factors, one of which is mining equipment and also power and costs, electricity costs are very influential in the success of crypto mining, but if the investment is just waiting for the right time or the desired price target to get a profit.

KiaKia

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If you have free good amount of money you can embark on bItcoin mining but make sure you are deriving more than money from mining, it has to be fun for you to enjoy mining, those who are into mining for the gains only don't always last long, the end up selling their mining machines and quit.

Right now Bitcoin halving is coming and your earning will go lower, if you are not ready to hold your Bitcoin for the long term do not buy Asic Miner. Also, it's advisable to have an affordable power grid, if it's not affordable or cheap don't buy an Asic miner.

For most people, they are better off buying Bitcoin vs mining Bitcoin, some people don't find mining as fun or something that could be turned into a hobby.

ChixX

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Quote from: deafgoose on March 02, 2023, 01:24:56 PM

Should I buy two S19j Pro's for $3,700 USD and mine it for the next few years or just buy $3,700 worth of bitcoin (0.16 BTC) ?

My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.

At the current difficulty of mining, it will take over 250 days to mine 0.16 BTC with two S19j Pro's (assuming electricity is free) but the difficulty will be WAY higher in the next 250 days...

I love the idea of mining because it allows me to dollar cost average into the market and there is no KYC involved.

Buying bitcoin has less risk than mining because having a miner requires maintenance, which can be more expensive, and power rate changes, but because you stated it's free then it's lucrative. Both mining and buying have various risk tolerances, and it relies on you what is your investment goal.

The only issue I can see with purchasing bitcoin is that it does not directly provide income like mine does.

cydrix

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Buying bitcoin has less risk than mining because having a miner requires maintenance, which can be more expensive, and power rate changes, but because you stated it's free then it's lucrative. Both mining and buying have various risk tolerances, and it relies on you what is your investment goal. The only issue I can see with purchasing bitcoin is that it does not directly provide income like mine does.

wahyuagung26

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Quote from: Litzki1990 on April 13, 2023, 10:50:33 AM

Mining usually requires different equipment. And along with machinery, electricity is the most needed. If you have enough knowledge about mining and if you can connect the electricity line at low cost and if your mining cost is relatively low then you can decide to mine.

In general Mining and also buying in a bear market are two different things, as well as different risks later. maybe so far there have been several ways for them to do mining, some have used Rig mining and also ASIC for them to make it a mining tool, but between Rig Mining and ASIC of course if it is used to mine Bitcoin I think ASIC is much more effective, and the problem is here is the cost and electricity.

ASIC itself has a higher power for its use, and an important factor here is to investigate the cost of electricity around, maybe we agree when the cost of electricity around is relatively low you can try to do Bitcoin mining. You will be able to calculate the profit later, to get the maximum profit maybe you can hold it to wait for the Bull Market and try to spend it.

Litzki1990

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Mining usually requires different equipment. And along with machinery, electricity is the most needed. If you have enough knowledge about mining and if you can connect the electricity line at low cost and if your mining cost is relatively low then you can decide to mine. If we have the capacity to do mining then we should think about mining.
If you think like this, if you can buy bitcoins with the amount of money it costs to mine, is it possible to earn more profit from mining? It all depends on you if you can invest by monitoring the market movement on time then you will have a chance to earn good profit.

panganib999

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Quote from: deafgoose on March 02, 2023, 01:34:09 PM

I pay $0.07cents USD per kw.

Provided that there's no active bans for crypto-mining within your state/country, you should be good to go. I reckon that the next couple years will be relatively the same difficulty-wise since there's only so few bitcoins left to be mined and crackdowns left and right are of course expected even with apparent signs of a bull market approaching. In any case, both is profitable, but if you want to have the power in yours hands, I would highly suggest you look into mining bitcoins instead of buying them, gives you the power to earn more if you want to, since I guess electricity's not really going to be a problem given the fact that you pay dirt cheap for lights, and idk, buying bitcoins right now is a little less appealing to many compared to mining (my personal observation).

philipma1957

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Quote from: kano on April 09, 2023, 05:12:36 PM

Quote from: philipma1957 on April 07, 2023, 02:47:12 PM

Buying coins is almost always wrong if you have cheap power.

Buying gear is almost always correct if you have cheap power.
...

Well from a simplistic BTC view, you'll probably never buy a miner that will mine more BTC than it cost to buy.

I purchase most of my miners with one year free credit.

And I can’t buy BTC on one year free credit.

But yea if you can’t buy miners properly (credit or cash) buy and hold btc is okay.

In fact I recently cut a deal for a ‘free’ miner.

I take 2 from the dealer.
He gives me one
The other I let him mine for zero power cost for one year.

Thus no btc out of pocket.
no cash out of pocket.

Can only do this with cheap power.
better yet he repairs gear. So I get good repairs.

Our expansion issues are cooling.
Still waiting on the liquid coolers from octominer they are now sixty nine days late.

kano

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Quote from: philipma1957 on April 07, 2023, 02:47:12 PM

Buying coins is almost always wrong if you have cheap power.

Buying gear is almost always correct if you have cheap power.
...

Well from a simplistic BTC view, you'll probably never buy a miner that will mine more BTC than it cost to buy.

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Quote from: deafgoose on March 02, 2023, 01:24:56 PM

Should I buy two S19j Pro's for $3,700 USD and mine it for the next few years or just buy $3,700 worth of bitcoin (0.16 BTC) ?

My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.

If you're not seriously ready to face the difficulties associated with mining then it's better you avoid going into it and not to be consumed by the difficulties along the way where you may have to abandon what you have already spent much time and energy to build. If your guts tells you to buy $3700 worth of bitcoin then it's also a rational decision as you don't have to face hassles in making profits compared to mining. All you get to do is to HODL which may not even get to 250 days before you start making profits from concurrent rise's in bitcoin price.

philipma1957

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Buying coins is almost always wrong if you have cheap power.

Buying gear is almost always correct if you have cheap power.

For all the years I mined 6 cent power turns power almost every day mining ever existed.

not so true for 10 cent power.

Bear markets are good for me as I get to buy gear cheaper.

we went from 1.2 ph in sept 2022 to 2.7 ph in march 2023

cost of gear was far far lower than it was in April 2021.

power cost 0 to 6 cents buy gear slow but sure = winner

power cost 6 to 9 cents harder to know if coins or gear is better.

power cost 9 to 14 cents very tough to mine buying coins is more often best shot.

over 14 cents don't mine maybe a little for fun or hobby

over 25 cents forget about it. buy coins via DCA method.

If all cases above do not buy so much that you are in real financial trouble.

A week ago a f2 Tornado with winds at 120-130 miles per hour missed my house by 2500 feet.

So you could have a great mine with great gear and by by if Mother Nature says so.

FP91G

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Quote from: bettercrypto on April 04, 2023, 06:16:07 PM

Quote from: wahyuagung26 on April 04, 2023, 05:20:17 PM

Quote from: Hana1707 on March 24, 2023, 01:29:51 AM

If there is suitable electricity, it is definitely more suitable for mining

Actually what you said is true, electricity is one of the most important components for Bitcoin mining, of course, but what we understand is what you mean, maybe this is in terms of the electricity cost factor for calculating income from mining, it seems like using ASIC and also like Rig mining, this really requires a higher Power Empowerment Performance, and from here the electricity cost factor greatly influences the profits of a Bitcoin mining.

Choosing between Mining or buying in the bear market, maybe I think these are the same two jobs even though the methods and nature are significantly different, but basically they both have the same goals to be achieved. Especially we say that people's point of view is different as well as the technicals that brands use, most take advantage of the bear market to buy and increase their assets, and maybe most people choose the option of Bitcoin mining.

The problem we see is that it will take several years before the investor's capital is recovered. If the cost of electricity is at 0.07$ per Kwh.

Its ROI seems to be in 2 to 3 years but that depends on the situation maybe. So I think that if practicality is the basis for investing here in bitcoin is a really good way in my opinion.

Did you take into account the Bitcoin halving in April 2024 in your calculations? After that, the miner's income will drop by about 50%, while the mining difficulty and the cost of electricity will increase. This business gives good profits when some big miner shuts down their equipment, as was the case in China, and others get an increased profit.

kano

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Quote from: hZti on April 05, 2023, 01:20:51 PM

Quote from: deafgoose on March 02, 2023, 01:34:09 PM

I pay $0.07cents USD per kw.

Congratulation you have the possibility to mine Wink

! Still there is a very good chance that you will be better of if you will simply invest the money that you will put into the miner. Energy prices can rise and you would have a large problem or your miner can be defective etc. YOu need to make a very good profit to beat simply investing in bitcoin.

But that 'big' profit would only be made by BTC price rising ... so buying BTC would work out better.

hZti

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Quote from: deafgoose on March 02, 2023, 01:34:09 PM

I pay $0.07cents USD per kw.

Congratulation you have the possibility to mine Wink

! Still there is a very good chance that you will be better of if you will simply invest the money that you will put into the miner. Energy prices can rise and you would have a large problem or your miner can be defective etc. YOu need to make a very good profit to beat simply investing in bitcoin.

wahyuagung26

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Quote from: bettercrypto on April 04, 2023, 06:16:07 PM

Quote from: wahyuagung26 on April 04, 2023, 05:20:17 PM

Actually what you said is true, electricity is one of the most important components for Bitcoin mining, of course, but what we understand is what you mean, maybe this is in terms of the electricity cost factor for calculating income from mining, it seems like using ASIC and also like Rig mining, this really requires a higher Power Empowerment Performance, and from here the electricity cost factor greatly influences the profits of a Bitcoin mining.

Choosing between Mining or buying in the bear market, maybe I think these are the same two jobs even though the methods and nature are significantly different, but basically they both have the same goals to be achieved. Especially we say that people's point of view is different as well as the technicals that brands use, most take advantage of the bear market to buy and increase their assets, and maybe most people choose the option of Bitcoin mining.

Its ROI seems to be in 2 to 3 years but that depends on the situation maybe. So I think that if practicality is the basis for investing here in bitcoin is a really good way in my opinion.

Maybe so far now, many Bitcoin users, they choose to prioritize investing over long distances, and the ROI is more in the realm of investing, now we can say we are more attractive to investment paths in long-distance and long-term use, and what seems to be evaluating efficiency performance is more to ROI in the long term in my opinion, and maybe it's true that now the practicality is more to investment. although depending on the situation in the next

bettercrypto

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Quote from: wahyuagung26 on April 04, 2023, 05:20:17 PM

Quote from: Hana1707 on March 24, 2023, 01:29:51 AM

If there is suitable electricity, it is definitely more suitable for mining

Actually what you said is true, electricity is one of the most important components for Bitcoin mining, of course, but what we understand is what you mean, maybe this is in terms of the electricity cost factor for calculating income from mining, it seems like using ASIC and also like Rig mining, this really requires a higher Power Empowerment Performance, and from here the electricity cost factor greatly influences the profits of a Bitcoin mining.

Choosing between Mining or buying in the bear market, maybe I think these are the same two jobs even though the methods and nature are significantly different, but basically they both have the same goals to be achieved. Especially we say that people's point of view is different as well as the technicals that brands use, most take advantage of the bear market to buy and increase their assets, and maybe most people choose the option of Bitcoin mining.

The problem we see is that it will take several years before the investor's capital is recovered. If the cost of electricity is at 0.07$ per Kwh.

Its ROI seems to be in 2 to 3 years but that depends on the situation maybe. So I think that if practicality is the basis for investing here in bitcoin is a really good way in my opinion.

wahyuagung26

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Quote from: Hana1707 on March 24, 2023, 01:29:51 AM

If there is suitable electricity, it is definitely more suitable for mining

Actually what you said is true, electricity is one of the most important components for Bitcoin mining, of course, but what we understand is what you mean, maybe this is in terms of the electricity cost factor for calculating income from mining, it seems like using ASIC and also like Rig mining, this really requires a higher Power Empowerment Performance, and from here the electricity cost factor greatly influences the profits of a Bitcoin mining.

Choosing between Mining or buying in the bear market, maybe I think these are the same two jobs even though the methods and nature are significantly different, but basically they both have the same goals to be achieved. Especially we say that people's point of view is different as well as the technicals that brands use, most take advantage of the bear market to buy and increase their assets, and maybe most people choose the option of Bitcoin mining.

philipma1957

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Quote from: deafgoose on March 02, 2023, 01:24:56 PM

Should I buy two S19j Pro's for $3,700 USD and mine it for the next few years or just buy $3,700 worth of bitcoin (0.16 BTC) ?

My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.

At the current difficulty of mining, it will take over 250 days to mine 0.16 BTC with two S19j Pro's (assuming electricity is free) but the difficulty will be WAY higher in the next 250 days...

I love the idea of mining because it allows me to dollar cost average into the market and there is no KYC involved.

There are pros and cons to both options of buying two S19j Pro's for $3,700 USD and mining it for the next few years or just buying $3,700 worth of bitcoin (0.16 BTC).

Mining can allow for dollar cost averaging and avoid KYC, but there is a risk of not being profitable before reaching 0.16 BTC due to the increasing mining difficulty and electricity costs. It also requires maintenance and may not be as profitable as just buying bitcoin upfront.

Buying bitcoin upfront is less risky and may provide a good return on investment in the long run, but it doesn't generate earnings like mining and there may be KYC requirements when cashing out.

mining is far lower risk than buying coin.

but buying coin means more possible profit.

the idea of say .1 btc at 28000 in coin

or using .1 btc at 28000 to buy a miner is comparable is the problem.

they should never be compared ever since they are different method of investing.

one buying coins is passive
the other buying a miner is active.

if your power is cheap enough profit in mining ⛏️ is pretty certain.

i can buy mining gear with credit cards and pay zero interest for 15 months.
i cant do that with buying a bitcoin.

i get endless tax writeoffs expanding a mine
i get to build solar arrays with my partners with mining
cant do it with buying coins.

I made profit every month since nov 21 price was at 69k because i mine.

Aikidoka

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Quote from: kano on April 02, 2023, 07:11:27 PM

Of course there is also the more relevant issue that the amount of BTC you spend to buy miners will almost always be less than the total BTC you will get back.

So while people like playing luck with $ prices vs $ cost for miners and running them,
the actual BTC cost you pay for the miner at the time you buy it, will probably always be higher than the amount of BTC it generates, no matter what the market is.

I confirm that mining is really hard to make a profit from it unless you have a lot of equipment and you don't pay for electricity. Most casual people who buy miners start to make a decent profit in the first few months, but after about half a year, the profit usually decreases significantly. In some cases you'd pay much more for electricity than the profit you would make from mining.

Personally, I started mining using 3x GTX 1660 SUPER a few years ago, and I made almost 80% of their cost. However, i stopped because the earnings were too low and it wasn't worth to keep going.

alphalemming

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Quote from: alphalemming on March 06, 2023, 02:36:20 AM

For profit, the average person is always better to buy bitcoin, never mine it, and don't buy at the top.

The company that sells the new miner will raise the price of it to take away your profits and maximize theirs.

The person that sells a used miner knows that there is no more profit in it.

The price of bitcoin and the difficulty will rise faster than you can mine it.

1 Month Update All in on miners or bitcoin?

Total Hash Rate + 12% Network difficulty + 9% Bitcoin + 23%

4/2/23 0.16 BTC ($28,400) $4,544
3/2/23 0.16 BTC ($23,100) $3,700
Buying Bitcoin made $844
Mining made .0175 btc est. ($28,400) $500
Buying bitcoin made $344 more than totally free mining

Even with free labor, free electric, no pool fees, 100% up time, buying bitcoin was more profitable than mining this last month.

Bitcoin can “mine” dollars faster than a miner can mine bitcoin. The price of bitcoin can grow exponentially while the miner has a fixed, or limited, maximum hash rate going against an increasing difficulty rate as new faster miners come on line and the price of bitcoin increases.

A miner mines bitcoin slower over time, loses value, and becomes obsolete. Bitcoin “mines” dollars faster over time, becomes more valuable, and is never obsolete.

Looks like a big percentage loss to mine. Smaller losses will become larger over time. If bitcoin goes to 1M then .08 would be $80,000 vs .16 at $160,000

Smoking Hopium Bitcoin Mining Calculator
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Topic: Mining .vs buying in a bear market (Read 618 times)