Topic: Mining .vs buying in a bear market - page 2. (Read 539 times)

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.

Yea like many have said the only way this could work is if you didn't have to pay for electricity.  The only way you're going to get zero cost for electricity is if you build your own power source... IE solar, wind farm, or if you somehow find a way to tap into zero point energy (not likely).  

If you CAN find a way to offset the cost of electricity or even turn the deficit into a profit by putting more energy back on the grid than you consume, then the BTC mining venture would become the side hustle, as the incentives from utilities paying you for generating electricity would almost certainly be more profitable.

NOTE on zero point energy:
It's not possible to build a zero-point energy device right now.

Zero-point energy is the lowest possible energy that a quantum mechanical physical system may have, which is also called the ground state energy. This energy is always present in any physical system, even in a vacuum. However, it is not possible to extract energy from this state, as it is a fundamental property of quantum mechanics.

Attempts to create devices that could harness zero-point energy have been made in the past, but none have been successful. There is currently no known way to access or utilize this energy. The laws of thermodynamics, which govern the behavior of energy in physical systems, also limit the possibility of extracting energy from the vacuum.

While the idea of a zero-point energy device may seem enticing, it is important to recognize that such a device would violate some of the most fundamental principles of physics. Therefore, it is not a practical or feasible goal to pursue.

I think mining needed to invest in hardware and software to solve complex mathematical problems that validate transactions on a blockchain network. As you mine, you will rewarded with newly minted cryptocurrency.

on the otherhand, buying cryptocurrency in a bear market can be an option. as prices are generally lower than during bull market. But there will be a risk that is no guarantee that prices will rebound. you will keep losing money if the price continues to fall.

but i don't think mining is dead, the decision to mine or buy crypto in a bear market will depend on the circumstances and risk tolerance.

You will be paying for the electricity bills, that is where I have a problem with Asic miners, they take too much energy and I can't add an extra miner because of this, it is better to just buy Bitcoin instead, there is no need to deal with calculations and other little headaches surrounding Bitcoin mining, unless it's your hubby like some members on here, even while Bitcoin mining is less profitable they don't see the need to stop mining, they believe in long term mining and holding.

In cases like this, it's better to just buy bitcoin and hold it for a long time in our wallets or just make a trade depending on what we want rather than buying mining rigs.

    Because here in our country, bitcoin mining doesn't seem to work because the electricity consumption here is high per kilowatt hr (KWH), but if you are in a cold country like antartica, maybe it's possible hehehe, just kidding aside.

Difficulty will increase for sure in the coming days and with recent inflation, electricity cost could increase again too. Also, mining rigs needs maintenance. And with electric devices, there's no guarantee that it will always work smoothly. If not from a reputable brand, there's a risk of getting scammed and warranty void problems. And most likely you will need two and a half years to get your investment's return.
On the other hand, if you buy Bitcoin in this bear market before halving in 2024, you could get a good amount of profit. Meanwhile you can DCA with it too. And KYC is not a concern because there are many decentralized exchanges available to buy BTC without the need of KYC. This is just what I think. It's your asset, and you should invest in which you feel comfortable.

Hello, I don't know much about mining, but there are ways to buy Sats without KYC.  (You will need a card though, but nothing more than that)

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

If you want no hassle or worry and think about it, if I were you, just buy bitcoin while on these occasions he went down in the market.

      If you choose to mine bitcoin, you need to monitor it every day as much as possible from time to time, unlike if you just buy bitcoin if you are a long term holder you will really just wait for a bull run. That's all you do, it doesn't affect you if its value falls or not in the market.

Well to be fair to you dude, if your electricity is cheap there and you only consume 0.05$-07$ per kwh you can do it by mining bitcoin. But if your electricity consumption is not included in the amount I mentioned. My advice to you is not to go ahead with the Bitcoin mining that is being planned.

It's more practical to invest or buying bitcoin on a trading exchange. At least there's no hassle, especially if you have an idea for trading, but it's better if you're a long-term holder all you gonna do is to wait for the right time of bull run.

By the way I will Prefer Bitcoin buying in bear market with the lowest possible price.
Because if I have some technical knowledge than I will be able to buy Bitcoin at lower possible price like current situation at 12k dollars if Bitcoin comes and in this way I will be in huge profits too.

mining is not dead, I hope that everything will work out

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.

Depends on many variables
Right now it shows me 0.00030942 BTC and $6.93  but Viabtc is 0.00028699 BTC and $ 6.41338274.
I'm a bit unsure how would Nicehash pay more if it weren't just for luck, and just from renting power for sure you can't get that much difference constantly as it would make no sense from the buyer side to overpay.
Anyhow, last 7 days we had a -4.5% drop in price and we're going to get 3% in diff, so, there goes the Nicehash bonus! 

The funny thing is, that, maybe, just maybe the miners themselves can be treated as assets. If a Bull cycle comes, the asic miner prices will shoot up again. Some people even do both things even used they sell them for more bitcoin while maybe renewing with more efficient models.

Since we can't guess the future, it is unknown. I have seen many past scenarios where buying bitcoin and holding would have been better than buying miners. But sometimes, if you bought the miners cheap (like with a bear market) and then later because of the Bull market they end producing more than anticipated reaching their ROI faster.

So yeah make your guess.

I don't like Nicehash, its not Bitcoin, they rent your hashrate for whatever clients want to do. If the altcoins are green you will get that perception, when altcoins go red, well you will see. It happened in 2018, it will happen again. Supposedly when altcoins go red, they now fallback to Bitcoin. There are other rentals with more control too where YOU define the fallback pool, etc.

I am getting paid more using NiceHash.

I average about 31,000 - 33,0000 satoshi's per day with a single 100th machine.

That's a good deal if you can get it.  I haven't heard of any hosts that offer this to the community at large and assume this is a private deal you have with your partner, right?  If not, I'd love to hear how I could get into something like this.  I currently have gear sitting around collecting dust that would be better put to use mining away for someone else and me getting 1/2 of what is mined.  I think a lot of people, especially now at the bottom of the market would love to participate in something like that.  Did I miss out on something?  Not a lot of people can profitably operate a miner while only keeping 50% of the revenue.

Once I pay the unit off my cost is 50% of price of BTC

many have my deal.

I buy the gear and give exactly ½ the coins to the host.

So a 100th s19 gives me 50th for free until it breaks or I sell it.

that is 50 x 6.5 = 3.25 a day for a 1500 dollar machine  around 462 days and it then generates coins at half price.

as long as I do not over expand to quickly I am good to go.

My hope is that in 2030 when I am ready to get out, there will be other options or that BTC will be accepted for what I want to purchase.

Only do mining if your electricity cost is profitable because mining is for long term investment and will definitely generate more money than buying upfront since you can sell the rig afterwards.

Only buy token if your electricity cost is expensive and not profitable because it’s just a waste of time and money to mine at loss than buying the tokens up front.

FYI. You will still need to KYC if you mine your tokens when you are already cashing out your profit to fiat. You will still need CEX no matter what happened if you are planning to get a fiat out of your token investment.