Reliable comparison between mining vs. buying and holding

[Eric Mu]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

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[odolvlobo]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

Assuming you have a situation where you can mine bitcoins profitably, then mining may give you a better return than simply buying them. On the other hand, mining is much more risky.

To determine mining returns in the past, you can use past equipment and electricity costs to determine mining costs, and compare those to mining income determined from historical difficulty data.

[Eric Mu]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

Assuming you have a situation where you can mine bitcoins profitably, then mining may give you a better return than simply buying them. On the other hand, mining is much more risky.

Yes I understand and that is quite obvious - I was wondering if there is any statistical evidence. Something a little more specific

[yayayo]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

I can't agree with your impression. I tend to read a lot more people giving advice against mining as opposed to simple buy and hold. And so would I. Nowadays, Bitcoin mining is profitable only for professionals with state of the art mining equipment and cheap electricity costs.

A general comparison between the two is hardly possible however, because all relevant factors vary greatly. You have to take into account electricity costs, mining difficulty and the efficiency of your miners. So you can calculate profitability only for a number of scenarios, not in a general sense.

What can be said with a high degree of certainty however is that the majority of home ASIC miners would have been better off directly buying Bitcoin. Delivery delays and inadequate performance of mining hardware had a huge negative impact for many.

ya.ya.yo!

[pooya87]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

these are not two things that you can compare. buying and holding is an investment that is easy and needs you to know some stuff about trading too. but it doesn't need much work to be profitable.
but mining is more like a long term investment that you have to work on it to make it profitable. and most people say choose buy and hold instead of mining because mining with the difficulty increase and electricity cost and the competitive nature of it is getting harder and harder and for most people the electricity bill is enough to make it a loss.

in the end it is up to you to calculate things and see if you can make it work and by how much.

[buwaytress]

Chances are, if you're already asking here it means you were unable to source the answers yourself. Of this is the case then you are far better off buying bitcoins if the idea is to hold them for long-term profit.

Bear in mind that the miners making profit are very technically knowledgeable, have a significant capital and are willing to put in time and further cost commitment.

Only consider mining if you have the patience, time and capital.

[saiha]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

Since both of them are investments that will need to have bigger amount of capital, those people who are comparing it are those are speculating and saying that mining is not profitable anymore.

So in alternative, they prefer to buy bitcoins and just hold it for a long time. Because in mining, if you don't have mining rig, you need to invest with it and as well as the consumption of electricity.

But with holding, many of the people here prefer this to do because this investment doesn't require too much effort.

[cakravothy]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

trading buying hold selling, and repeat can high profit and return
is comare in mining, mining high cost, electicity, reduce hadware performance, and high price in tool mining
if cloud mining is very high risk and low return, high risk because in very dificult can find cloud mining in real mining
so trading if the best choise to high return investment but must have skill

[Hazir]

From what I know no one created comparison between mining and buying. I imagine it would be extremely hard, what are the rules of this comparison?

Would buying BTC and holding it for a year, two, five will be better than investing money, time and effort into mining?

Do we want to convert BTC to FIAT in the end or when BTC price will spike up? Cost of electricity varies from place to place, there are too many individual factors too...

At this point it is safe to assume that mining BTC is dead for ordinary people.

[chesatochi]

I think both alternatives can provide an income and profit if you know what you doing.

In the case of buying and hold, you simply buy them and hope the price will claim in order to make a profit. The second point with mining, you need to make an investment in equipment and electricity before to do a break even before to start to make a profit.

I think the best option, should to buy them with you own money and wait.

[zero1ten]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

By simply looking at bitcoin's price history, you can already see that price grew by 75% compare to december 2015 and by that alone you can already assume buy and hold strategy was the better investment against bitcoin mining already, because there's no maintenance cost, no time consuming monitor needed, etc.

[Ayers]

mining bitcoin has more risk but mining altcoin and dump for bitcoin, which is effectively the same thing, is a much better investment than buying, because you generate bitcoin while keeping the value of your machines, that can be sold at any time to have almost everything back, for me it's far better than buying, but perhaps it's slower as a way to accumulate bitcoin

[ikydesu]

mining bitcoin has more risk but mining altcoin and dump for bitcoin, which is effectively the same thing, is a much better investment than buying, because you generate bitcoin while keeping the value of your machines, that can be sold at any time to have almost everything back, for me it's far better than buying, but perhaps it's slower as a way to accumulate bitcoin

If i'm be a part of mining party, i will choose to mining some altcoin too, but i prefer to research first the coin for future plan, means it can be worth to mining then dump or/ hold it for better price to earn more bitcoin(this need a lot research, but probably worth) or just be a sh*t coin for developer profit purpose only.

I think mining and buying/HOLD is basically same kind, both as investment, just the way make it different, buy directly is more safe but also the risk is price itself, this case is actually returned to their respective self.

[raja2sumi]

Mining bitcoina means machine cooling staff ,taking care of it and looking after it day after day .buying is more and holding it for a long time ,as if u hold it for a long time u might end up having a lot of bitcoins in the future.

[ladydark]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

Mining was an important source of earning bitcoins earlier when it was easily mined using CPU but now its not that easy.Mining is still profitable but for that,you have to invest to buy powerful ASICs and also,you have to check your local electricity charges for profitable mining.But for investing,you could even invest a small amount in bitcoins and hold it.In mining,you could be able to get a steady income.But in holding bitcoins,your earnings depends on the price variations in bitcoin.

[Palmerson]

You speak the truth, but why not combine all these types of earnings? It can bring good result and diversifitsirovat risks. Though of course it all depends on starting capital which you can use to earn money.

[jekjekman]

I think it is more convenient to buy bitcoin instead of mining nowadays because it is so simple that when you buy a hardware for you to mine the return of investment is so long or even no at all.

Instead of investing a $1k in mining then bought it with Bitcoin now and wait just like what will you do in mining but in holding bitcoin you don't need to spend electricity cost and maintaining cost.

[Oralmat]

Actually I have a different experience between mining vs buying and holding. Because i have not listen for any people who arguing for mining and opposed to buying and holding. Even i hear a opposite for the people who think that buying and holding is much better and everyone could do it easily than mining. Because only big professional investors can do mining and only when they start to mining if in their country they have a lowest electricity.

[hase0278]

I constantly hear people arguing for mining as opposed to buying and holding or vice versa as better investment strategy - is there any reliable source of information that compares the two over an extended period of time?

To compare the two, mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released according to investopedia which would only be profitable if you have a good mining rig or mining setup to begin with. Buying and Holding on the other hand is a passive investment strategy in which an investor buys and holds the bitcoin bought for a long period of time, regardless of fluctuations in the market according to investopedia again and is typically more profitable than mining most of the time unless you have a very good equipment for mining and a source of cheap electricity.

[AK47-]

Actually it is dependent upon number of factors. If you have access to free or near-free electricity, cool climate, Millions $USD in capital, technical expertise and first access to the latest ASICs. Then yes mining is profitable. If not, you are almost certainly better off just buying and holding BTC.