Topic: The Logic Between Mining/Holding vs. Mining/Buying Parts (Read 403 times)
For me, it depends on what coin you are mining and how many different coins you are mining. I myself mine Eth and XMR on two different machines and I tend to hodl them both. The only time I sell is if I need to buy parts for my machines or for some other things that I do not want to use my funds from my work.
Really depends what you're comfortable with. Nobody can predict the future and there's no guarantee coins you hold will be worth more in the future. I personally tend to mine and continue to expand on operations. I'd try doing a bit of both and seeing what works out.
Let's assume a card pays for itself in 6 months, and after 6 months it has a 25% depreciation.
If you have 1 ETH now worth $450 USD and you buy the GPU worth $450.
6 months later you have the GPU (worth $337.5 after depreciation), plus you have earned $450 in fiat assuming it did pay for itself in 6 months, and you sold everything once mined.
In this simplified scenario you have $337.5 + $450 = $787.50
If you choose to hold 1 ETH, and after 6 months it's worth less than $787.50, then it's better if you bought a GPU.
If that ETH shot to the moon and is at $2000. Obviously it's better to hold.
We just can't predict the future.
For me I tend to sell on price spikes and buy gear with it. During down time in ETH prices, I mine and replenish more stock of ETH up till it equals a certain percent of my mining investment.
If you have 1 ETH now worth $450 USD and you buy the GPU worth $450.
6 months later you have the GPU (worth $337.5 after depreciation), plus you have earned $450 in fiat assuming it did pay for itself in 6 months, and you sold everything once mined.
In this simplified scenario you have $337.5 + $450 = $787.50
If you choose to hold 1 ETH, and after 6 months it's worth less than $787.50, then it's better if you bought a GPU.
If that ETH shot to the moon and is at $2000. Obviously it's better to hold.
We just can't predict the future.
For me I tend to sell on price spikes and buy gear with it. During down time in ETH prices, I mine and replenish more stock of ETH up till it equals a certain percent of my mining investment.
what percent do you think is good?
everyone else has good input. now i understand why it makes sense to hold coin. i've been selling coin and buying new equipment but i'm going to cut back and hold for a bit.
I think that you should try to reinvest until the point that you feel you can get enough coins to mine.
If you have 2,3 6,10 cards...i think it would be better to sell as soon as you can buy another card.
If you have 500 cards...obviously you can lay back and just mine and hold.
Basically, it all depends on your personal level of confort and the amount of coins you will be happy to mine monthly and hold. Anyway , i would personally will never recomend to stop reinvesting...
I heard someone saying this and stuck to me:
Instead of getting the golden egg, you should get the Goose that lays the golden eggs.
If you have 2,3 6,10 cards...i think it would be better to sell as soon as you can buy another card.
If you have 500 cards...obviously you can lay back and just mine and hold.
Basically, it all depends on your personal level of confort and the amount of coins you will be happy to mine monthly and hold. Anyway , i would personally will never recomend to stop reinvesting...
I heard someone saying this and stuck to me:
Instead of getting the golden egg, you should get the Goose that lays the golden eggs.
at the end of the day its wishful thinking , being optimistic and some math with x dollar per day - x dollar per day cost of electricity to make a profit but right now there are better solutions to this just by holding ,staking and masternodes.
Mining and buying new parts provides steady profit but has 8-10 months ROI at best per card. On the other hand, mining and holdling coins make the better profit provided that you have chosen the right coin. It also has a big risk when the price of the hodled coin drops, profit also drops. It maybe best to invest on expanding the mining rig rather than hodling coins IMO. Steady but sure profit is better for me. But if you are good in hodling/trading then the other option is better.
I am simply not seeing such poor ROI as to take 8-10 months to pay off the system even now.
For example I built a new 3x VEGA-64 system for mining Intense (ITNS)... looking at ~4 months to get my money back from that system even if ITNS price does not rise.
My nVidia systems mining on ZPOOL are similar as well.
Hi All,
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
combination of both works best:D
Let's assume a card pays for itself in 6 months, and after 6 months it has a 25% depreciation.
If you have 1 ETH now worth $450 USD and you buy the GPU worth $450.
6 months later you have the GPU (worth $337.5 after depreciation), plus you have earned $450 in fiat assuming it did pay for itself in 6 months, and you sold everything once mined.
In this simplified scenario you have $337.5 + $450 = $787.50
If you choose to hold 1 ETH, and after 6 months it's worth less than $787.50, then it's better if you bought a GPU.
If that ETH shot to the moon and is at $2000. Obviously it's better to hold.
We just can't predict the future.
For me I tend to sell on price spikes and buy gear with it. During down time in ETH prices, I mine and replenish more stock of ETH up till it equals a certain percent of my mining investment.
If you have 1 ETH now worth $450 USD and you buy the GPU worth $450.
6 months later you have the GPU (worth $337.5 after depreciation), plus you have earned $450 in fiat assuming it did pay for itself in 6 months, and you sold everything once mined.
In this simplified scenario you have $337.5 + $450 = $787.50
If you choose to hold 1 ETH, and after 6 months it's worth less than $787.50, then it's better if you bought a GPU.
If that ETH shot to the moon and is at $2000. Obviously it's better to hold.
We just can't predict the future.
For me I tend to sell on price spikes and buy gear with it. During down time in ETH prices, I mine and replenish more stock of ETH up till it equals a certain percent of my mining investment.
Hi All,
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
Most people just use 6-24month no interest financing to fun their mining operations. This way you can hold and pay it all off when its time. Some people can afford to mine/hodl while bleeding electrical fees. Others need to mine/sell to pay bills.
Mining and buying new parts provides steady profit but has 8-10 months ROI at best per card. On the other hand, mining and holdling coins make the better profit provided that you have chosen the right coin. It also has a big risk when the price of the hodled coin drops, profit also drops. It maybe best to invest on expanding the mining rig rather than hodling coins IMO. Steady but sure profit is better for me. But if you are good in hodling/trading then the other option is better.
Hi All,
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
I'm wondering what your thoughts on are mining+holding vs Mining+selling for parts?
I see that some people like to mine and hold their coins. I don't understand how that is better than mining, and then buying more parts to mine faster.
I'm curious what others think so we can all understand a little more about the pro/cons of both.
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