What's better Ethereum Mining or Buy and Hold?
The crypto currency gold rush is on!
I'm asking this to the steemit community which I fully admit many have a much better understanding of crypto currencies than I do and I want to get your opinion.
Personally I'm seeing the continued rise of ethereum and see it bypass bitcoin. At least that is what we are seeing in the market cap. Right now bitcoin is at $48 billion and ethereum is second at $32 billion as of June 11, 2017.
What I see is that bitcoin is like the My Space of crypto. Sure it was first but the technology is outdated and has limitations as I understand. Ethereum as I understand it is better designed.
So my question is. If you had $1,000 USD to invest which would be better spent.
1 - Getting a 2 year mining contract at Genesis Mining for 30MH/s with no maintenance cost for $869 USD. According to the calculator would bring in $204.73 per month.
My question here would be that as ethereum prices rise would it also mean the payout would increase? So you're benefiting in multiple ways, right?
Or
2 - Just buy $1,000 worth of ethereum and hold it as it increases.
Now I'm leaning toward mining but before I do I want to get some opinions.
Another benefit I see in mining at Genesis is that you can switch your Mining Allocation to another currency like Steem even. So if for some reason ethereum tanks you can switch it. Hmmm.
As a test I did already got a Genesis account at just 5 MH/s for $150 3 days ago and so far got 2 pending payouts for a total of 0.00674646 ETH which is in line with the calculator.
If you want to try Genesis Mining yourself you can use this code for a 3% discount: vbkHL2
Another option that I found is with HashFlare which offers 12 month contracts for a lower price which might make more sense since the difficulty level increases over time anyways.
Use this link for 10% off your first order as a first time customer. Example use this calculator with 30MH/s and select 12 months for 2.39 ETH then select 24 months for 3.07 ETH. So in the second 12 months you only earn an extra .68 ETH.
I look forward to your opinions.
These are certainly exciting times we live in.
Wow, first clever topic on Genesis Mining! Good question! it depends on what will grow faster: difficulty or the price! Do your own research on the price prognosis. Difficulty increase you can already predict, but the speed of increase may also rise, as everybody is buying graphics cards now and Jerry Banfield vlogging about earning $200 a day with mining with 50 graphics cards.... So, it's up to you. To tell the truth, I am torturing myself with the same question...... :) Following you! Thanks for this question! Let's look what will other specialists say ;)
Investing is crypto is already a risky business. Investing in mining is exponentiating that risk. IMHO, plain stupid. The major factor is, that the difficulty increases dramatically. Sometimes exponential. Most mining profitability calculators do not account for that. They give you the wrong picture, so you think mining is a good business (it is, for the one who is selling it to you).
See this calculator for example: http://www.mycryptobuddy.com/EthereumMiningCalculator
With accounting for difficulty increase the absolute maximum you can mine with 30 MH/s is around 3 ETH. But you have to run it for 2 full years (extend it to 24 months under the image) - and after that the contract will most likely be unprofitable to maintain. So, do you want to wait 2 years for your 3 ETH, with all the risk involved of the company saying goodbye or difficulty increase to beyond mars, or do you want them NOW safe?
Thanks. I appreciate your input and the link to that calculator.
Good question. I', following to see what the answer turns out to be. I know that if things go south you at least have a rig that you can convert to another coin, but I don;t know the risk/reward.
I don't know much about trading and mining. I'm a buyer for long term.
my opinion is better mining. because you can get profits in daily regardless the price going up or down
What ever you prefer - both is good. Hold for longterm, mine for a constant income.
Option 3: Invest in the gear and build your own ETH miner. If you spec it right, you can mine any crypto that uses GPU miners. A typical rig has 5 or 6 GPU's (rig cost about $2500 USD) and each GPU produces between 25-30MH/s It should pay itself off in around 6 months. (even after the expense of hydro is included)
If all of the GPU cryptos tank, you can sell the gear you bought, or have a very decent gaming computer.
Nice post. Good to see I'm not the only one that is thinking about this. Buy low, sell high, it seems so simple but most investors still don't seem to get it :-) I found this amazing platform: https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. Check for example: https://www.coincheckup.com/coins/Ethereum#analysis For the Ethereum Investment and research analysis.