Anyone hedge your mining income?

[adaseb]

Its not possible to hedge your mining income. You can always sell some BTC or ETH futures shorts and you would be locked in at a specific price but you can't control the difficulty.

If price of ETH keeps going up so will the difficulty. So if you sell your ETH futures at the current price of $250 and in a few months it hits $1000 per coin, your issue will be that it will be difficult mining that same ETH at $1000 than at $250 since there are more miners. So your profit per day would be much smaller even though your price is still at $250.

This method would work best if say ETH crashed back down to the $100 range, because the difficulty would decrease and you would get more ETH to sell at $250.

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[GREENch]

And if you wait for the transition to ETH POS it will be possible to receive passive income, of course if you have 32ETH. It's all theory, and as will be in practice, nobody knows.

[adaseb]

And if you wait for the transition to ETH POS it will be possible to receive passive income, of course if you have 32ETH. It's all theory, and as will be in practice, nobody knows.

Yes your passive income will be in ETH, not in US dollars which is what the main poster is trying to achieve. This is why its not always great to invest in masternodes, because yes you will get more altcoins but if the value of the underlying altcoin actually goes down with respect to the US dollar, you lose money anyways.

And who knows when ETH will actually transistion to POS, they are always slow in development and always miss deadlines. It could be another 2-3 years before we get the full POS.

[Kasperiko]

Half of what got from mining sell. This tactic has been working for more than a year. Thus, even at a strong fall, I can not turn off my power.

[Rakly3]

Mining + (real) gold & silver IS my hedge against fiat inflation and coming worldwide economy crash.
I'm buying instead of selling if I have spare cash.
And if i see cheap hardware (like 12 vega 56's reference) for 175 euro each. motherboard for 20 euro or less, rig frames for 14 euro etc etc. I'm buying all that **** up!

100 risers with cables for 100 euro, c'mon, they are just giving it away!
(been scammed once though, but luckily was only 72 euro)

[GREENch]

And if you wait for the transition to ETH POS it will be possible to receive passive income, of course if you have 32ETH. It's all theory, and as will be in practice, nobody knows.

Yes your passive income will be in ETH, not in US dollars which is what the main poster is trying to achieve. This is why its not always great to invest in masternodes, because yes you will get more altcoins but if the value of the underlying altcoin actually goes down with respect to the US dollar, you lose money anyways.

And who knows when ETH will actually transistion to POS, they are always slow in development and always miss deadlines. It could be another 2-3 years before we get the full POS.

An interesting question)) According to analysts, the transition of Ethereum to Proof-of-Stake will not happen until at least 2021. This is because a PoS system is simply not able to prove its efficiency.

[CryptoKush]

I think that the best hedge is when you have money and you do not need to sell your coins for electricity opata. You can wait for the best price.

[EdvinZ]

Yes, now the majority of miners are mining basic cryptocurrencies and hold it in the hope of further growth. The news background stirs up investor interest, soon will be halving the reward for the mined block of Bitcoin. A lot of good news is expected, so very few people withdraw money in fiat currency.

[VanDeinsberg12]

And if you wait for the transition to ETH POS it will be possible to receive passive income, of course if you have 32ETH. It's all theory, and as will be in practice, nobody knows.

Remember that will be more difficult to earn, POS makes the big players will become a winner and 32eth still a speculation to be the minimum amount to able stake our ethereum in the network. We have so many news and sources said the different thing about that. POS makes block reward of ethereum will have reduced to the 0.5eth for each block and that looks so horrible for a little miners

[Dr.Osh]

Current income from mining is not as big as before. many say that the decline in bitcoin prices that occurred in 2018 made many people no longer a hedge of their mining income. well, nowadays most people hold it back, and wait for the right moment to sell it, so that their income can be better than selling it directly.

[adaseb]

Mining + (real) gold & silver IS my hedge against fiat inflation and coming worldwide economy crash.
I'm buying instead of selling if I have spare cash.
And if i see cheap hardware (like 12 vega 56's reference) for 175 euro each. motherboard for 20 euro or less, rig frames for 14 euro etc etc. I'm buying all that **** up!

100 risers with cables for 100 euro, c'mon, they are just giving it away!
(been scammed once though, but luckily was only 72 euro)

I checked and in my area the Vega's or the 1080Ti are still expensive and hold their value very well. The only cheap GPUs which I can buy tons of are the RX 470/570, those are even dirt cheap on eBay. The pricing is pretty bad for the RX 470 because I've sold my even older Radeon 7970/280X for almost the same price. No idea why people are paying the same for a 280X than a RX 470.

Motherboards, especially Intel and their CPUs will never be cheap. The only cheap motherboards out there are those China brand ones and the only cheap CPUs you will find are the Celerons. Even AMD seems to be holding their values, unless you are looking at a Sempron.

Rig frames, you can usually just buy the hardware and cut it to your own specifications and build it yourself. In my area, very rarely is someone selling a used rig frame.