Confused between mining and holding

[Joshua Jackson]

Mining is the use of your computer to produce a certain cryptocurrency of interest. Think of Mining as being similar to printing or minting currency bills just like the central bank does. while to hodl is to acquire a given cryptocurrency and holding until its value increases. In any of these cases, you have the opportunity to make huge profits if you are doing it right.

[CrossroadBTC]

while HODL is easier (and riskier too).

I find it hard to agree with this point, HODL is a lot less risky, you just need a proper hardware wallet to "store" the coin, your risks are limited, predictable, and avoidable, with mining, however, I can name tens of risks associated, many of which are not controllable by any means, people have no clue how hard is it to maintain a mining farm, but worrying about theft, fire, damaged PSUs, dead fans, heatsinks falling and all that is a lot of headaches and a lot of risk to be taken.

It still depends, not every holders are ready to hold for years to come, some are holding for quick up trend in crypto market for few dollars more, for them HODL is more risky, my friend was forced to hold BTC in 2018 after buying at ATH, he has no choice but to hold but he wasn't prepared for it

[willhuber]

@CrossroadBTC HODL is only good as long as you don’t hold and forget. Hodling is less burdensome but you still need to keep a close eye on daily movements because crypto being highly volatile can yield most unexpected results.

[Jawadu]

I recommend holding! Not that mining is not profitable, but it needs a lot of money in preparations and running the whole process 24/7. But you can start holding even with $500 and if you start holding at the right time then you'll see an increase to your portfolio slowly day by day.

[flip4flop]

There was a great report on how mining has actually outperformed holding over the years released by Jefferies last week. I will put the link below so you can read the whole report but the takeaway for the purposed of this thread are below.

Buying bitcoin versus mining it

Jeffries' primer tackles the persistent question of whether mining is more profitable than simply buying bitcoin. Of course the analysis finds mining to be more profitable, which is the correct answer. In this analysis, they note:

• The cost to buy an ASIC miner is generally earned back within 6-12 months.
  
• Mining has resulted in up to 5-6x higher returns over multi-year periods compared to buying and holding.

https://compassmining.io/education/jefferies-bitcoin-mining-report/?utm_source=miningmemo&utm_medium=newsletter

[kano]

...
Mining has resulted in up to 5-6x higher returns over multi-year periods compared to buying and holding.
...

Absolute crap

They probably compared it to retards buying BTC high and selling low
or buying miners a few years ago and selling them now for more than someone paid for them.

In reality though, the price you pay for a miner in BTC is usually around or less than the total BTC it will ever mine.
Selling off the miner after that to some sucker who is going to regret buying an old miner for the rest of their life will not be making you 4-5 times more BTC ... ever.

They are a company that wants you to mine ... so of course they are gonna report ridiculous stats to make you want to mine not hodl.

[philipma1957]

Well buy and hold is simple.
then buy at dca and hold is a bit harder.
lastly buy the dip and hodl is the hardest of all to time.


Mining ⛏ is complex. To say it is better than buy and hold is simplified.

The point you began to mine is important.
The mine and hold idea is important .

A long long long time ago I got an s-1 if I only mined with that and simply held every coin it mined I would have made a lot of money.

Now to say it cost three coins and earned 2.9 coins while it mined for years thus buying the three coins is better than buying the three coins and spending them on the gear only to earn 2.9 coins is one way of looking at it.

But it involves more than that as this time it is different.

why do I say that? an s-1 did 200gh and burned 400 watts

it was quickly replaced by

s-3
s-5
s-7
s-9
s-15
s-17
s-19

if you studying the watt to th improvements  they are getting flatter.

I propose this flattening is different and will favor mining over buy and hold.

But BTC is not predictable so I could be wrong.

Also if you buy on ebay and get a deal you paid in PayPal cash not btc.
You may have six months to pay with zero interest.

I got two s15’s on ebay July 2020. cost was 700 usd with six months to pay 💰

So if I did this and simply mined and held until Jan 2021 It would be better than if I purchased the btc at 700.

A ) I can buy the gear on layaway zero up front. six months to pay
B) I can not buy btc on layaway zero up front six months to pay.

This is a big reason why I mine more than I buy and hold.

[martina14]

Hello there
A Lil intro about me
I am based in dubai been in the crypto space since 2017 invested in a few shitcoins (bitgold,mlm schemes )(im looking at you bitclub) as well as a few long term based projects.
However none of my previous ventures have beared fruit as i anticipated
Currently im weighing in the pros and cons of mining a coin vs just holding the same worth of coin and reaping benifits lets say 5 years later
From what im reading on this forum the variabilities in mining are way too many compared to just buying the coin and holding it in a cold storage wallet
Ps:If mining id be looking at colocation (usa,kazhakstan,canada) was looking at a few options from compass mining (dont know how legit they are though since ive heard about them only through voskcoin)
What are your thoughts ?
Buy and HODL or Dive into the world of mining with colocation 

I've been here in cryptocurrency industry for 6 yrs and yet I never try to buy any mining rigs to  mine Bitcoin due to its too expensive in the market and the electricity also was too high, in short it consume high electricity monthly depending in the price value of bitcoin. So, the better things you need to choose and to do is buy and hold, in fact, when you buy the 50% of your holdings can be use for short trading actually.