Evans

Mining versus buying Bitcoin

4 posts in this topic

Bitcoin having been described as a digital gold,people who know about this currency technology wants to have as many bitcoins as possible.

However,one major problem is that not many can afford buying a bitcoin as an investment due to huge price.Hence,the best profitable way of investing in bitcoin is by mining.The best recommended is pool mining because mining alone too is very expensive.

If you need to invest in mining pools do a thorough research because many scams are out there waiting to con people in this cryptocurrency craze!

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Many people can't afford to buy precisely 1 BTC, because it's anywhere between $6000 and $20000 depending on the time of year. But you can always buy a fractional Bitcoin. So you could buy 0.2 BTC without needing to invest as much.

Even pool mining is not easy, because you need to have enough mining power to be worthwhile. In my experience, the price of enough mining equipment to make even pool mining profitable would still be better off spent just buying Bitcoin directly. Unless you live in an area where electricity is extremely cheap (or free) so that you'd be able to realistically compete with mining farms in China and Russia.

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While I agree that mining is not also cheap,I prefer mining because of the volatility of the crypto. 

Imagine people who bought Bitcoin around Dec 2017 when it had shot to $20,000. Now,it's $6500!

They will need to wait for a long time to recover their money!

If one invested let's say $2000 in mining and another in buying and keep,in 3yrs mining may have earned around 2 BTC thus making more profit.

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That's a fair point. Then investing money in mining equipment is like hedging your bets on Bitcoin price. If the price goes down by a lot, at least you still have the equipment that you can re-sell if necessary to recuperate your costs. If the price goes up a lot, you still make some profit but may have missed out on the short-term gains from buying directly.

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