Seems like some miners are telling they would have made more money by simply buying and holding Bitcoin, rather than mining it. Is that likely to be the case going forward? I know I’m asking for speculation — but, if one is working under the bullish assumption that BTC will build up ter popularity and more people will commence using it, is it a better bet to buy and hold than to invest ter mining equipment?
Investing ter expensive mining equipment hedges a bet that the come back on investment, ter the form of Bitcoin, will eventually pay off the initial investment and proceed paying a come back for some time before becoming obsolete (like CPU mining has and GPU mining shortly will) or cracking down. It may be possible operate this spil a business, writing off expenses while selling generated Bitcoin for a profit. This is all based on an assumption that this mining system may eventually be profitable. It’s safe to assume that it will be once running, but, like any dividend play, it’s a long term investment. Unlike dividend plays, the terugwedstrijd will likely only decrease overheen time.
By buying Bitcoin itself, one participates ter the economy. While Bitcoin volgers would hope that one would not hold on to Bitcoin spil an investment, but rather spend it te order to further the economy, it is possible to still make a terugwedstrijd on investment if one’s purpose is to earn a terugwedstrijd te government issued currency.
Consider a $1,200 investment ter a mining setup versus a $1,200 investment ter Bitcoin itself.
The former is a long term play, slowing building up to profitability through the course of months or years. Something may toebijten that causes the system to fail and halt comebacks.
The latter is a more liquid play, where one can sell the Bitcoin at a profit (or loss) short-term or long-term, or exchange Bitcoin for goods and services, thereby furthering the economy.
It comes down to investment style. Does one fancy themselves a miner or a jeweler?
I think this is a subjective question.
Just because wij are bullish and are expecting growth te users, does this mean wij will see a rise ter price?
Not necessarily from my view spil I dont think price always indicates a rise ter popularity and usage. Price indicates there are more users buying than selling, however a price decline indicates more users willing to sell at cheaper prices.
Now talking about hardware, you have to consider who is ter the mining industry going forward. Wij are observing a massive growth ter factory mining facilities. Ones that are spending millions te purchasing hardware and outfitting warehouses to mine.
How long will a $1200 + cost of operating investment to turn a profit? Trio, 6, 9 months? How do you calculate your ROI? Are you using a static price? Are you expecting a increase te price? Are you accounting for a potential decline?
Next question you need to ask is are you accounting for difficulty increase? Big warehouse miners that come online can cause massive spikes ter difficulty and will extend your ROI.
I favor the latter specifically for all the unknown outcomes pointed out above. Big industrial miners have driven the petite huis miners out of the industry unless you can power it for cheap and expect to only truly pauze even. I view it spil gambling, you’ll likely pauze even, but you are likely to not make a profit.
My view: BUY BITCOINS!
Purchasing $1200 worth of bitcoins(at todays price of $210) means you’ll be able to purchase Five.68 BTC. On the spin side, you could say you’ll purchase $20 of bitcoins everyday for the next 60 days regardless of price. This means if the price is lower ter Ten days, your going to get more BTC, and if higher youll get less.
Purchasing ter segments means your positioning yourself incase of a more downward price. Wij’ve bot ter a price decline for some time now, and theres no signs that wij’ve kasstuk bottom which means wij can expect more lower prices(people want to specie out causing more supply of coins).