Mining vs Holding

[the rise]

I think miners, because miners were an early community of bitcoins, they were more understanding of bitcoin, and they were rich people, had a lot of bitcoins to date, there were no small bitcoin miners, they always had large amounts of bitcoin. In addition, miners, are a community with strong fundamentals, are not easily moved, and have full support with bitcoin.

[CryptoStar19]

Both holding and mining have risks in terms of downward price action, however with mining the risks are just more. If you are simply holding and prices go down you can always wait for a recovery, but if you are mining and there is a crash it can make mining not just unprofitable, but even causing a loss depending on your power source and how up to date your rig is...

[CryptopreneurBrainboss]

Since you didn't give any condition for your questions like having limited funds or you can only have the stated amount above, I'll say if you8 have the funds why not do the both. You can mine as well become a holder. You don't just have to sell the Bitcoin you mined as the results showed it'll be more profitable and chances are it'll even be more than what it's estimated there.

Or you can become a miner and still have funds to do investment, just that the mined coins would be sold for profit and used for your needs while the investment stays active until it's matured enough for you to decide what to do with it by either selling all or cashing out some fractions. Both mining and holding (investment) has it benefits. Miners get the opportunity to receiving virgin coin, coins that they were the first to own.

I mean that's a very special thing considering how rare this currency would be in future considering it just has 21million in supply. Soon there won't be enough to go round and having the opportunity to own one right now without having to pay for it literally is something worth holding.

[avikz]

I believe it's an individual choice whether to mine or hold or trade to make money. In all 3 instances, bitcoins have to be sold to realize the profit. I personally am a short term trader who identifies the moving average and trade accordingly to make money. I could have mined as well but I prefer a noiseless environment and when trading keeps me well fed, it makes no sense for me to mine.

Holding bitcoins is a different ballgame altogether. It depends on an individual's risk appetite and also depends on time. If someone has entered into the market in early days, they will definitely prefer holding. But if someone has entered at 50k price point, they will either sell off in loss or wait for a better time. In a nutshell, these are personal preference.

[SFR10]

you have 2500 $.
You can buy a miner or just invest this money to BTC.
Which is better in the long run?

I'm sure most of us, can easily argue on both sides when it comes to the pros and cons of each ^{[results may vary depending on your situation]}.
^{- Personally, I prefer purchasing a miner > use it until it doesn't make sense [regardless of the ROI and profits] > sell it > purchase a "better" one > repeat the process [this is just the short version and others have already mentioned most of the risks].}

Mining while it does have issues with difficulty rising and electricity costs at least electricity costs are stable

I wish I could say the same ^{[highlighted part]} thing about mining rigs as well.

You need some technical knowledge to mine while any computer-literate person can buy a coin on an exchange.   

And they could lose everything if they're not careful enough ^{[unfortunately]}.

In Mining there are a lot of factors to consider, obviously you should live in a country wherein electricity is quite cheap,

Or you could use hosting services from a country that has a cheap electricity rate.

I'd honestly recommend holding more than mining just because of the effort time and money mining needs before you actually profit.

The same ^{[highlighted parts]} can be said about hodling as well.

Miners get the opportunity to receiving virgin coin, coins that they were the first to own.

That's not always the case ^{[in general]}.

[Silberman]

In almost all instances investing for the average person would be more worthwhile unless you can fill a warehouse full of miners with cheap electricity and then you would be earning a lot more over the long run. The thing is with investing it bares a lot of risks and you have to time it correctly with mining its generated passive income all the time.

I agree, I had been tempted by the idea to mine my own bitcoin but at the end I decided against it as I was not sure I would be able to do it with my current level of knowledge and as such I prefer to buy bitcoin and just hold it, according to the OP this will be less profitable than mining and holding but this is not a problem for me as not everything can be about the profits, as I have a job and I do not have the time to dedicate to anything else at the moment so the easier and faster route of just buying bitcoin and holding it is better for me.

[Core.i7]

I have developed a project
https://github.com/peroksid90/crypto_calculator

to compare mining vs holding. Contributions and comments are welcome.

For example,
you have 2500 $.
You can buy a miner or just invest this money to BTC.
Which is better in the long run?



So at the end we see:

the worst case: do mining and sell mined profit every day (red line) (7300$)
the better: just buy and hold (olive line) (8200 $)
the best: do mining and don't sell. (magenta)  (12500 $)

magenta and red doesn't include the miner market price. So actually we should add it to the profit, because the equipment price is also rise(even used).

Mining is a difficult process as compare to the investments. In mining you have to bought the equipment and also bear the cost of electricity. In investment you only have to invest and hold. You can choose mining is you have large capital.

[Shenzou]

I think when it comes to mining you have to take in consideration the cost of electricity, since it varies from one place to another the cost versus the profit that you would get from mining is much more variable, and the investing and holding is really dependent on how much you put into it, so if you really want to mine bitcoin efficiently you should think about making an investment into some clean energy production system like solar panels if you want to make bitcoin for free.

[DarkDays]

In almost all instances investing for the average person would be more worthwhile unless you can fill a warehouse full of miners with cheap electricity and then you would be earning a lot more over the long run. The thing is with investing it bares a lot of risks and you have to time it correctly with mining its generated passive income all the time.

I wouldn't think that mining is passive even if you do manage to get away with paying cheaper electricity. By definition passive earning is not some action at a reduced cost by involves you not doing anything.

As for mining vs holding, these days you can't compete with the mining gear pros have it requires too much of an initial investment which is why in my opinion holding is the better deal.

[temple]

In almost all instances investing for the average person would be more worthwhile unless you can fill a warehouse full of miners with cheap electricity and then you would be earning a lot more over the long run. The thing is with investing it bares a lot of risks and you have to time it correctly with mining its generated passive income all the time.

Well, even if you had the opportunity to fill a warehouse and also have cheap electricity prices, the actual bottle neck will still be whether or not you can get your hands on a certain number of miners. The companies developing that stuff are also mining companies themselves. If they have cutting edge technology, they use it first and sell it to the retail market when they are 90% through with developing the next generation miner that's outcompeting the predecessor. 

[ninkdwi]

all will have their respective risks and benefits because basically both mining and holding both have advantages and disadvantages between the two.
to mine might be very good because we get passive profits from there but this also has risks and depends on the investors who are there because the more investors, the less passive you will have. but maybe you will be more relaxed because you already know the passive income you have is already listed in nominal.
and to become holders, we also have risks and things that need to be considered, such as how long we want to be hodlers and what the prospects will be like.
but apart from that i like mining more than holders

[teosanru]

I have developed a project
https://github.com/peroksid90/crypto_calculator

to compare mining vs holding. Contributions and comments are welcome.

For example,
you have 2500 $.
You can buy a miner or just invest this money to BTC.
Which is better in the long run?



So at the end we see:

the worst case: do mining and sell mined profit every day (red line) (7300$)
the better: just buy and hold (olive line) (8200 $)
the best: do mining and don't sell. (magenta)  (12500 $)

magenta and red doesn't include the miner market price. So actually we should add it to the profit, because the equipment price is also rise(even used).

A better option than both is staking. If you stake in the bearish phase of the market and continue staking till the bull run, there is no better investment option than staking any coin. Also unlike mining staking requires no space therefore you just need the wallet or staking can even be done with exchanges these days which makes it even easier. Many coins give around 20-30% yield per year which is pretty good if combined with price movements.

[fara_buduk]

both are very good things but in my opinion mining is better because we can collect and hold it until the market pumps at a high price whereas holding can only wait to make profits in unpredictable terms

[GoingIntoAction]

I tried mining many times, first i tried mining with bitcoin when the price was 700 dollars, i spent 7000 euros in mining, and yes i made good money, like 2 bitcoins, but if i would have bought i'd have around 10, the difference is clear. After some time i tried again, this time with graphic cards mining altcoins, and it happened again, i'd have won 10 time more if i did buy.
And that's why i don't mine anymore, i only do it now with the rest that i got but i don't buy new equipments.
Mining can be very profitable with horizontal price swings, but with these strong revaluations that cryptocurrencies kept having, it's complicated that the profitability of hodl look alike when mining, also when the price is high the difficulty usually is high too, so you can't benefit the revaluations while mining the same way you benefit from hodl.
Maybe when the revaluations aren't that strong or the prices are more stable, mining will be more interesting. 

[BaeSuzy]

I don't have a lot of time to set all of that mining stuff because i quite busy with my real life (working and teaching my son). So i prefer to investing instead of mining, further more if we're looking in this market situation i think it's very dangerous to spend money into mining stuff. Most of my friends already sell all of he's VGA and i think thats the right choice to do in this current situation.

[indo1]

Holding looks simpler and also inexpensive in terms of capital, in contrast to mining that must have rig mining, plus expensive electricity costs, holders only need to support in the long run, and it looks much simpler, with the same profit as miners.

[indo1]

Holding looks simpler and also inexpensive in terms of capital, in contrast to mining that must have rig mining, plus expensive electricity costs, holders only need to support in the long run, and it looks much simpler, with the same profit as miners.

[Hendra gunawan]

I prefer holding over mining.  because mining requires a large enough capital to buy a VGA.  Then the electricity cost per month for mining is very expensive.  Holding is very flexible whenever we can immediately sell our assets for take profit.

[tygeade]

It’s not a new thing that mining is an expensive business to do this time around. A lot of people are even running away from it because of the cost that comes with it. People that I see around who are into mining are mostly cloud mining. Big companies with big mining farms has taken over the mining space.

So, this time a better thing to do is investment. Even when you are doing investment you still have to be careful and calculate your moves to avoid making mistakes that will cost you money. Though the good thing about mining is that if you have enough money to start up a mining farm and also have affordable electricity to run, you’re sure of making income. Investment is best for those that doesn’t have enough for mining.

[Btcvilla]

everyone will probably prefer mining bitcoins instead of holding, maybe because of several factors that influence it, if we invest in bitcoin for a long time and also the purchase price is very cheap for now, maybe we just need a little patience before we start to enjoy these results, maybe it is more inclined to the perception of each for each investor, but for me I will prefer bitcoin with a long period of time