Profit evaluation – Hodl instead of mining

[BlockchainWizard]

Many people are still not sure how to get good profits from Bitcoin. Doing a good research is often difficult and some people want to make a profit by mining.
But is it really a good idea to generate profits from mining?

For mining, it needs to be mentioned to know about very technical details.

Normal people would hire or call a computer specialist to set it up and whenever a problem arises, you need to call him, which will cause extra costs.

Mining is involved directly in Computer Technology and requires special technical knowledge most common people don't have, if not studied.

Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

[NeuroticFish]

Hosted miners or Cloud Miners are even charging a fee to set up and operate

I would get cloud mining out of this equation, since the vast majority of them are HYIP/Ponzi scams disguised under websites showing some fancy images and numbers.

[Alone055]

Despite all the problems and issues you have mentioned about the technicalities of mining, solo mining can barely be profitable anymore considering the difficulty and the costs one will have to bear, and now when the block reward has been cut in half, it can be a bad business for an individual to try and set up a mining station at their home with one or two mining equipment or so.

Electricity costs alone would eat up most of the profit one can potentially earn from mining unless they live somewhere where the costs of electricity is extremely low and they wouldn't need to pay a hefty amount in electricity bill every month for running his mining equipment.

So, no doubt, holding is a better option for an individual, one could even think of making a few short-term trades for some profit, but mining shouldn't be an option for them.

[AbuBhakar]

Many people are still not sure how to get good profits from Bitcoin. Doing a good research is often difficult and some people want to make a profit by mining.
But is it really a good idea to generate profits from mining?

There will be no huge Bitcoin mining companies investing on bitcoin mining if this is not profitable instead of just holding. It depends on electricity rate and your mining rig equipment to become profitable in mining. In general, It’s really profitable if you have a good setup and cheap electricity cost. @Philipma can testify to this since he is very active on Bitcoin mining.

Bitcoin holding can’t even compared on mining since mining generates new Bitcoin for profit while holding doesn’t increase your Bitcoin quantity amount so both mining Bitcoin and holding Bitcoin will benefits when Bitcoin price increase. The only difference was you can get more profit on mining because your earnings grows like compounded because you generate new Bitcoin while it’s fiat value increase at the same time.

[Findingnemo]

Normal people would hire or call a computer specialist to set it up and whenever a problem arises, you need to call him, which will cause extra costs.

Mining is involved directly in Computer Technology and requires special technical knowledge most common people don't have, if not studied.

If that's what your expertise in dealing with gadgets and stuff then I won't recommend going anywhere near mining, in 2024 you need a huge capital to buy ASICs and set it up which is one time investment but for sure it requires regular maintenance and if you are going to hire someone every time that's gonna cost you a lot.

Holding and mining are totally different, and I wouldn't compare one with another but the point you are trying to say is right just buy bitcoin and hold them for years which is more profitable than investing on mining hardware.

[I_Anime]

Many people are still not sure how to get good profits from Bitcoin. Doing a good research is often difficult and some people want to make a profit by mining.
But is it really a good idea to generate profits from mining?

For mining, it needs to be mentioned to know about very technical details.

Normal people would hire or call a computer specialist to set it up and whenever a problem arises, you need to call him, which will cause extra costs.

Mining is involved directly in Computer Technology and requires special technical knowledge most common people don't have, if not studied.

Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

Well mining ain't bad one can actually a some good amount from mining, but it requires some technical knowledge inorder for it to be carryout. While holding don't requires such knowledge before one can start holding, with just the basic knowledge of Bitcoin and some principles one can gladly go into holding without any stress. Still both are still profitable depending on the individual .

[Coyster]

For mining, it needs to be mentioned to know about very technical details.

This isn't the major limitation in mining bitcoin. It is the cost of mining that you must consider first, these costs include that of electricity, mining hardware, maintenance, etc. For example, if you don't have access to cheap electricity, you cannot make profit from mining bitcoin.

Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

Cloud mining does not count. Most of it is just scam and nothing else.

[Upgrade00]

If you do enough research you'll be able to properly set up your mining station all on your own, but to be profitable you'll need a lot of capital and constant/cheap access to electricity. For an average investor hodling is far more accessible than mining, you can start off with any amount of capital you have, you can buy steadily over periods of time and it doesn't cost you anything to set up a wallet.

It is also not a comparison, many miners are still holders. You don't have to do one or the other, if the conditions are right for you, give mining a shot.

[Faisal2202]

Your points are worth noting but with time people learn things its not that you have started to mine BTC and after 1 year you still have the same level of knowledge. With time and problems people learn, even if you have to call a technician or a miner expert in order to setup your rigs and to solve some problems you are facing, you will learn by observing, by asking him questions, or maybe you can pay him extra buck and ask him to teach you.

Anything is possible with a little devotion. But yeah holding has its own perks and we should really not compare it with the mining of BTC. Because in my opinion if you have lesser funds and you can either hold BTC by buying them or can build one low level rig which have lower power then definitely I will say go for holding option as that's more reliable. But if you have more funds that can buy you high power then the decision would be a little different.

[KingsDen]

Comparing mining and Holding should be done in 2 phases;

• Early days of BTC
• BTC now

During the early days when the BTC reward of miners was high(50BTC), we could say that mining was better because the energy requirements was smaller then.

Now, Holding should make more sense because Solo mining is definitely not profitable anymore unless one has to join some mining pools and the reward is recently halfed.
However, it's subjective although. When BTC reward was 50 for miners just a few dollars could also buy food number of BTC. I can say holders make it more and would not be wrong.

[Zaguru12]

Many people are still not sure how to get good profits from Bitcoin. Doing a good research is often difficult and some people want to make a profit by mining.
But is it really a good idea to generate profits from mining?

For mining, it needs to be mentioned to know about very technical details.

Base on profitability level I would say it depends on how much you’re willing to spend or have. Bitcoin mining if setup well with large amount of capital can definitely generate profits and at the same time you will be a bitcoin holder too. But the amount to set a mining rig with equipments like ASIC are way too expensive, not minding the amount need for electricity consumption. As the time goes by it is even harder for solo miners to compete with large pools for bitcoin mining. The thing most miners do is to join this large pools if they don’t have the financial capability to host their own mining rigs that can actually compete.

But the easiest option for low capital investment is to just buy more bitcoin and hold in peace, although it wouldn’t generate the periodic profits that the mining option will bring but it will be more profitable than a solo miner with less than 2EH/s hashrate

[LogitechMouse]

~
Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

Cloud miners? Is that even exists until now? When I'm starting to learn more about crypto, I tried joining on a cloud mining website through the satoshis that I'm getting on multiple faucets. Turns out, it isn't profitable and will never be. Exclude this one.

If you will try to start both, of course holding would be the best option since in order for us to start mining, we need a huge capital. If you don't want to get stressed on maintaining your mining facilities, just buy Bitcoin and hold it. Mining is profitable depending on what equipment you are using and your electricity bill, of course, but for me who doesn't want to get stressed that much, I'll just buy and hold Bitcoins.

[nakamura12]

If you want to mine then you should just bought a mining rig rather than in cloud mining which isn't a safe thing to do and also most of it are ponzi scheme so I wouldn't recommend it at all. Buying mining rig and join a mining pool would be a much better than cloud mining. As you can see with other forum members, they have the same thought as me that cloud mining isn't worth it to start with. It also depends on a place if the electricity is cheap or you found another way of having electricity without cost like having a solar panel and more to generate electricity or combine both so that the electricity bill will decrease compared to before the use of solar panels.

[serjent05]

Hosted miners or Cloud Miners are even charging a fee to set up and operate

I would get cloud mining out of this equation, since the vast majority of them are HYIP/Ponzi scams disguised under websites showing some fancy images and numbers.

I second this suggestion, it has proven that cloud mining is not a profitable venture and many of us fall victim in this scheme when it was hot way back a few years ago.  I am one of those that invested on cloud mining and my investment does not end well.  It is either the site file bankruptcy while other just straightly scam their client.  

I would always choose Bitcoin mining over the so-called cloud mining butfor those who have technical difficulty in setting up mining it is best to just  straightly buy BTC, less maintenance, less troubleshooting and all we can do is keep our holdings safe from hackers and have the patience to see profit from that venture.

Base on profitability level I would say it depends on how much you’re willing to spend or have. Bitcoin mining if setup well with large amount of capital can definitely generate profits and at the same time you will be a bitcoin holder too.

Mining profitability is dependent on the cost of the electricity, so if you are in a country where the price of electricity is gold, then better forget the idea of mining.  It will only drain your funds for paying bills.

[hugeblack]

Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

Cloud mining is either mostly a scam or an investment with uncertain results and risks. In any case, beginners should not think about mining as a means of obtaining Bitcoin. Mining is an economic activity that requires experience, capital, and technical and detailed knowledge, as any error or delay may cause the loss of your money. Instead of cloud mining, buy Bitcoin or learn to trade.

[lovesmayfamilis]

I'm not a miner and have never tried mining, but I think the OP forgot to mention electricity. Electricity costs for mining go beyond normal usage. I'm talking about this because in my country, the government literally keeps its nose to the wind, and miners are tracked for consuming large amounts of electricity and then severely punished. Therefore, of course, in some countries, it is more profitable to simply invest than to mine.

[tabas]

Many people are still not sure how to get good profits from Bitcoin. Doing a good research is often difficult and some people want to make a profit by mining.
But is it really a good idea to generate profits from mining?

For mining, it needs to be mentioned to know about very technical details.

Normal people would hire or call a computer specialist to set it up and whenever a problem arises, you need to call him, which will cause extra costs.

Mining is involved directly in Computer Technology and requires special technical knowledge most common people don't have, if not studied.

Hosted miners or Cloud Miners are even charging a fee to set up and operate mining devices which will decrease your mining rewards even more but you won't have to care for technical details to set it up and maintain it.

I don't mine but I see individual miners sharing their mining setup and they're all happy continuing doing that, and most of them are aware that the difficulty increases over time and there will be a point of their lives that they need to upgrade. Forget about cloud mining because most of them are scams and if there are legitimate ones, you'll never get to avail any of their contract because they're always sold out. I have no idea if they're on a purpose of being sold out at all times. Going back to mining if it's fun to make profits from it, DEFINITELY. They've invested into their mining equipment and they're not just cheap asic miners that can be purchased by someone who have no idea on what they're doing. The fun is there in discovery, operating and troubleshooting once you're there. The good thing now is, there is a vast community that someone who's new to it and ask questions to help each other.

[1miau]

Very true because HODL instead of mining is really much more profitable compared to mining.
Mining is a really professional business and maybe some of you have viewed the graph, where the mining difficulty has been visualized. Mining difficulty is going up much more than Bitcon's price because mining is really a competitive business and miners get more modern and powerful step by step.

Mining is involved directly in Computer Technology and requires special technical knowledge most common people don't have, if not studied.

Good point and aside from the fact that mining is a business done by professionals, not average Hodlers who don't have any experience in Computer Technology, your miners get old pretty quickly because new miners are developed by Bitmain and Co. frequently.
So, your shares of the total hashrate go down every time your competitor miners are getting more modern (and powerful), you'll lose shares of percentage of the total hashrate.  

And good point where you've said every time it needs to be checked, we need to hire or call a computer specialist to set it up and whenever a problem arises, we need to call him... It's very annoying because it's also a consideration for our profit evaluation, where we lose time once our called computer specialist will look into it. Aside from extra costs, which your mentioned correctly.

[shitpost pioneer]

Yes, Hodl instead of mining.

Mining is a business for professional and experienced people in Computer Technology or Coders who have knowledge of Mining and Blockchain.
We need to focus on Hodl, normal Bitcoin price gains and opportunities to get Bitcoins for free. Mining is not suited for normal people.