When does it make sense to just buy the coin instead of a mining rig?

truckinusa

hero member

Activity: 534

Merit: 500

Quote from: Flying Hellfish on June 14, 2017, 08:35:02 AM

When you can buy more coins for fiat price of the miner than than miner will ever mine back (after deducting expense's), that's when. Obviously if the reverse is true you should buy as many miners as you can afford.

Whenever I have bought miners I buy them to mine for 3-4 months in the winter for extra heat and then I sell them. Hopefully they have new hardware this winter to heat my home. The amount of money spent on the miner was near zero dollars because there is always some demand for used miners.

Flying Hellfish

legendary

Activity: 1764

Merit: 1757

Verified Bernie Bro - Feel The Bern!

When you can buy more coins for fiat price of the miner than than miner will ever mine back (after deducting expense's), that's when. Obviously if the reverse is true you should buy as many miners as you can afford.

truckinusa

hero member

Activity: 534

Merit: 500

I think it is best to buy either in a valley not a peak. We have seen many valleys and peaks. It does not seem like mining hardware prices dip as much in a valley. I believe mining hardware is a better buy in a peak than buying the coins. It also depends on whether you solo mine or pool mine with a limited amount of hardware. I think solo mining is an excellent gamble with one miner over a lottery ticket from whatever state. I gambled $300 on a s7 miner and lost nothing because the hardware sold for exactly what I paid for it. I was leasing it for free and just paid electricity.

philipma1957

legendary

Activity: 4326

Merit: 8950

'The right to privacy matters'

Quote from: bossbit on June 09, 2017, 06:06:05 PM

I've been pondering this question a lot, and I cant seem to come up with an answer I like. I feel like if we are in a speculative bubble, it would be a smarter idea to just buy the coin, but if the overall market growth is slow or the coin price growth is slow due to an immense circulating supply, it might be a better idea to just buy a mining rig.

Thoughts?

Mining is better if:

Cheap power.
Reliable gear.

I have both so I mine and rarely buy.

Although I purchased today at 2635 price.

Iranus

hero member

Activity: 1792

Merit: 534

Leading Crypto Sports Betting & Casino Platform

It would be pretty profitable to start mining in the midst of a speculative bubble or to be mining through one - the reason being that difficulty can take quite a long time to catch up with price when the price goes up extremely fast (like it has in the past few months with Bitcoin and alts).

If the market growth is slow it would probably end up being less profitable, unless the speculative bubble ended too violently and the price went really low after the difficulty went up.

Amph

legendary

Activity: 3248

Merit: 1070

it's really simple i've explained it many time, when you mine you are essentially buying bitcoin at a very lower rate than buying, this is what make mining profitable otherwise it would be pointless

the onyl advantage of buying is thta you can have many bitcoin quickly, instead with mining you get them very slow, unless you have a very big farm

so..converting electricity in bitcoin is far cheaper than converting USD in bitcoin

Bitcoinsummoner

hero member

Activity: 1484

Merit: 624

Maintain Social Distance, Stay safe.

I think the movement of the price of bitcoin honestly is increasing fast if you know what the price last year its a big increase if we compare the price last year and the present price..
So buying coin is a good choice instead of buying a miner. and if you choose to buy miner we do not know if its really profitable or not it will be still depends if where you are living and what is your electric rate in your country..
Try this bitcoin mining calculator https://www.coinwarz.com/calculators/bitcoin-mining-calculator
Also add the hardware cost and power cost so that you know if its really profitable in your area or not..

bossbit

member

Activity: 68

Merit: 10

I've been pondering this question a lot, and I cant seem to come up with an answer I like. I feel like if we are in a speculative bubble, it would be a smarter idea to just buy the coin, but if the overall market growth is slow or the coin price growth is slow due to an immense circulating supply, it might be a better idea to just buy a mining rig.

Thoughts?

Topic: When does it make sense to just buy the coin instead of a mining rig? (Read 1071 times)