Bitcoin Forum
December 02, 2016, 06:19:38 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: profiting on mgtox while mining?  (Read 1231 times)
Costia
Newbie
*
Offline Offline

Activity: 28



View Profile
January 20, 2012, 05:46:10 PM
 #1

I started mining on my GPU a few days ago and transferred 0.1BTC to MTgox to play on the market.
tried short selling , and lost about 5% since the BTC went up.
Which got me thinking. I started mining because i believe that the value of BTC will go up with time.
If i were a trader that would mean I should buy BTC for a long term profit, but since i am a miner it basically means I dont need to do a thing - i am already getting BTC, and all i need to do for a profit is not to sell them - a.k.a. do nothing. this is kinda boring...
So, If i believe the value of BTC will go up, is there any sense for a miner to trade on MTgox at all?
1480702778
Hero Member
*
Offline Offline

Posts: 1480702778

View Profile Personal Message (Offline)

Ignore
1480702778
Reply with quote  #2

1480702778
Report to moderator
1480702778
Hero Member
*
Offline Offline

Posts: 1480702778

View Profile Personal Message (Offline)

Ignore
1480702778
Reply with quote  #2

1480702778
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480702778
Hero Member
*
Offline Offline

Posts: 1480702778

View Profile Personal Message (Offline)

Ignore
1480702778
Reply with quote  #2

1480702778
Report to moderator
Mushoz
Hero Member
*****
Offline Offline

Activity: 686


Bitbuy


View Profile WWW
January 20, 2012, 05:48:55 PM
 #2

I started mining on my GPU a few days ago and transferred 0.1BTC to MTgox to play on the market.
tried short selling , and lost about 5% since the BTC went up.
Which got me thinking. I started mining because i believe that the value of BTC will go up with time.
If i were a trader that would mean I should buy BTC for a long term profit, but since i am a miner it basically means I dont need to do a thing - i am already getting BTC, and all i need to do for a profit is not to sell them - a.k.a. do nothing. this is kinda boring...
So, If i believe the value of BTC will go up, is there any sense for a miner to trade on MTgox at all?

Yes. If you think BTC is currently overvalued, you can sell and wait till it drops a bit, only to buy back more BTC. That way, even if in the longterm BTC goes up, you will have more BTC, thus more profit.

www.bitbuy.nl - Koop eenvoudig, snel en goedkoop bitcoins bij Bitbuy!
wachtwoord
Legendary
*
Offline Offline

Activity: 1484



View Profile WWW
January 20, 2012, 05:50:50 PM
 #3

Just don't do that. It is speculation and it's a zero sum game whereas investing is not.

Mushoz
Hero Member
*****
Offline Offline

Activity: 686


Bitbuy


View Profile WWW
January 20, 2012, 05:54:00 PM
 #4

Just don't do that. It is speculation and it's a zero sum game whereas investing is not.

True, and because he's asking, he's probably not good enough to beat the market. But if he is good enough to have an edge on the market, he could consider doing it.

www.bitbuy.nl - Koop eenvoudig, snel en goedkoop bitcoins bij Bitbuy!
Costia
Newbie
*
Offline Offline

Activity: 28



View Profile
January 20, 2012, 06:16:22 PM
 #5

quote author=wachtwoord link=topic=60444.msg704008#msg704008 date=1327081850]
Just don't do that. It is speculation and it's a zero sum game whereas investing is not.
[/quote]
Never thought about it this way.
Playing the market on the short term means the asset doesnt actually change its value and i am using bubbles to profit
While in the long term its the asset itself that changer its actual value

Thanks
wachtwoord
Legendary
*
Offline Offline

Activity: 1484



View Profile WWW
January 20, 2012, 06:26:08 PM
 #6

That's why I posted it. To avoid you trying to beat other people in a game they are very likely to be better at. Most people will end up losing, a few will win and the bank (aka MT Gox/Bitcoinica/Tradehill etc) will always win.

If you'd like to read a good book about investing in general (and how it is completely different from speculation) I'd recommend "The Intelligent investor" by Benjamin Graham (http://www.amazon.com/Intelligent-Investor-Book-Practical-Counsel/dp/0060155477).

Twister Trojan
Newbie
*
Offline Offline

Activity: 12


View Profile
January 20, 2012, 09:11:26 PM
 #7

Just don't do that. It is speculation and it's a zero sum game whereas investing is not.

It doesn't matter what you call it, profit is the only reason to do it. I've traded stocks and options for some years and the less I thought about investing the more money I made. Sometimes people ask me "What's a good stock to buy?" when they mean "to buy and hold?" and I have to tell them I don't know of any.
Goomboo
Sr. Member
****
Offline Offline

Activity: 409



View Profile
January 20, 2012, 09:12:15 PM
 #8

My background is finance and your question is "does this make sense"

Sense = the present value of all future cash flows is greater than your cost of capital

In other words:

If you think you can MAKE money trading adjusted for the risk of uncertainty, then you should trade as well as mine.

So the question is thrown back at you: can you make money trading?
Costia
Newbie
*
Offline Offline

Activity: 28



View Profile
January 21, 2012, 12:18:42 AM
 #9

In the current situation the profit i can possibly make from short term trading is not enough to justify the effort - i.e. I can make more money by spending this time working , writing software, rather than betting on unknowns. In other words - i don't think I can make money just by trading in a speculative zero-sum environment.
The only investment that makes sense for me is long term. Assuming financial bubbles don't last forever i need to evaluate if the current cost of BTC is more than it's worth now, and/or if it is greater than what it will be worth in the future.

So i guess that my current decision should be to invest a small amount of time/money into BTC now for these 2 reasons:
1) BTC might be actually worth something in the future
2) In the process itself of trying to figure out how currency works i am learning a lot about economy/money/trading - and actually getting some practical experience with investments without much risk.

I think that the only logical step for me is to buy some BTC for real money as a long term investment. But currently, I will not do it since I don't feel comfortable investing any sum of money due to my lack of knowledge in trading and economics.
jekker
Newbie
*
Offline Offline

Activity: 8


View Profile
January 21, 2012, 12:01:17 PM
 #10

I trade bitcoins in small amounts and make a few bucks here and there. I've simply recognized the pattern of when bitcoins go down in price and when they go up. So i just buy low and sell high. I'm not very good at it, but it does make me some money.
coinft
Full Member
***
Offline Offline

Activity: 187



View Profile
January 21, 2012, 07:08:26 PM
 #11

I trade bitcoins in small amounts and make a few bucks here and there. I've simply recognized the pattern of when bitcoins go down in price and when they go up. So i just buy low and sell high. I'm not very good at it, but it does make me some money.

Maybe. It's a fun game, but liquidity really limits the amounts you can put to use this way, and your time is most certainly better rewarded (financially) doing something else.

Also, some small gains can easily be set off by a big loss, so I don't think you have evaluated your true risk yet. I made this mistake in the past too. Pattern based methods are quite like reading tea leaves.

-coinft.
Costia
Newbie
*
Offline Offline

Activity: 28



View Profile
January 21, 2012, 10:04:25 PM
 #12

I trade bitcoins in small amounts and make a few bucks here and there. I've simply recognized the pattern of when bitcoins go down in price and when they go up. So i just buy low and sell high. I'm not very good at it, but it does make me some money.

Maybe. It's a fun game, but liquidity really limits the amounts you can put to use this way, and your time is most certainly better rewarded (financially) doing something else.

Also, some small gains can easily be set off by a big loss, so I don't think you have evaluated your true risk yet. I made this mistake in the past too. Pattern based methods are quite like reading tea leaves.

-coinft.

I dont quite agree with this. the lessons taught here by loosing a few cents/dollars on mgtox can save you a lot of money in the long run
While he doesn't get rewarded much in terms of actual money - it will teach him how volatile a forex market can be - thus saving him a lot of losses in the future
i.e. free economical education , some institution charge quite a lot for that Smiley
codymanix
Full Member
***
Offline Offline

Activity: 203

Gir: I'm gonna sing the Doom Song now..


View Profile
January 23, 2012, 08:56:06 PM
 #13

I do not really understand the question. If you have lots of coins, you cannot do anything with it unless you make money from it, right?
And to make money from bitcoin you need an exchange like MtGox or Tradehill, right?

Also you do not have to speculate. You can also long term invest your bitcoins, given the (99%) fact that bitcoin will rise, as seen in long term.

Programming tutorials, Tools, Games & Humor http://deutronium.de.vu
My Vircurex referral code for persistant 0.05% trade discount: 750-33267 or use
https://vircurex.com/welcome/index?referral_id=750-33267
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!