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Author Topic: How Much To Spend, How Much To Keep  (Read 1191 times)
MikesMechanix
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June 08, 2011, 09:22:44 PM
 #1

I'm a bitcoin newbie, and there is something I have been wondering, which I haven't seen discussed here...

Most miners keeping a lot of their mined coins leads to a smaller supply, and subsequently to a more rapidly increasing price.
Increased price leads to greater incentive to mine, and subsequently to increased network hashing power and difficulty.
Increased difficulty leads to less generated coins per hash.

To put it simply, keep mined coins => get less coins in the future. Which might mean that in the long term, there may not be such a big difference between hoarding and selling (or spending) coins almost immediately, at least if you look at the bitcoin economy as a whole.

Most people who hoard coins are probably entertaining the idea of spending or selling them at some point. So, eventually, they'll be adding to the supply anyway. Of course, timing will make a difference and some people will have more luck than others.

Taking the thought further, I think it might actually make sense to save some mined coins and spend or sell some, to even out some of the luck.
What would be a good ratio and what would go into determining it?
How much of a gamble is saving?
How much of a gamble is spending?
Should you factor in the hashing power of your mining rig?
Or am I overlooking something obvious?

Any thoughts?

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June 08, 2011, 09:30:50 PM
 #2

I will trade off a few coins each month just so I have something to show for it (in case of a crash).  I don't have many anyway (less than 20).  As I make more I'll adjust
 
If coins ever reach $100 per coin, I"ll sell off a little each week, always keeping at least one.
 
If coins ever reach $1000 per, I"ll sell the minute I earn one. 
 
I'm keeping one just in case it ever reaches one million per, so I can sell it and say I'm a millionaire Wink
 
That's my plan.  mostly to keep the coins moving, and to have something to show for it rather than hold on to a ton, and then have them crash and be worth pennies or worse.
 
Someone's gonna be left holding the bag, just like someone's going to get really rich.  Me, I'll be in the middle somewhere Smiley

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Coma
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June 08, 2011, 09:41:43 PM
 #3

Been mining for a 10 days, got 4 BTC, but this friday my first rig will come to life. Humble, but would get me 2BTC/day with the current difficulty.

I was thinking on spending 1/3, reinvesting 1/3 and saving in BTC 1/3.

But now I don't know.
I do know I want to have at least 3 times the hardware I currently own.
gboytazzz
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June 09, 2011, 07:44:39 PM
 #4

ya with the way its going now i argee with OP i do want to mine and have something to show  for it ... i dont want to be the one stuck with a ton of them and there worthless  Embarrassed.... so i think of just investing what i have into more rigs im a gamer so i know they will get used to there full potential  Smiley  Wink  Cheesy

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Findeton
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June 09, 2011, 07:53:31 PM
 #5

I save 10% of profits in dollars, so when/if bitcoin's price plummets, I can buy a lot of them.

Stop thinking in dollars!

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ThaMunsta
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June 09, 2011, 07:57:36 PM
 #6

I plan on keeping every coin I can get at this stage.
Right now it feels like a supply and demand thing. As it gets harder and harder to mine coins the demand will go up.
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June 09, 2011, 08:43:55 PM
 #7

I sold 200 BTC for $12USD last august, and was pretty psyched.

I currently try to give BTC away to people I meet in real life who might have a shot at spreading the good news.


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June 09, 2011, 10:17:49 PM
 #8

I currently try to give BTC away to people I meet in real life who might have a shot at spreading the good news.

This.

Everyone who wants bitcoin to succeed needs to either give them away to spread the news, or spend them to encourage adoption, IMHO.  Selling is OK too as at least they are being redistributed.

This goes about a million times more for the early adopters who are sitting on piles of btc.

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