-BUY/HOLD -Buy $4200 of a coin at $0.5 each, if cost per coin doesn't change I own $4200 of coin
*in 1 year at 3x cost it's $12,600 I hold ,
*in 1 year if it 5x cost it's $21,000 I hold,
*and if it's 10x cost it's $42000. Solid.
-MINE- Spending $4200 ($2400 piece of hardware, plus $1800 in power for 1 yr /$150 a month) , and the average of coins mined daily over the year is 30 coins a day...
*in 1 year at same cost I've mined $5475 (30 coins a day, $0.5 each coin) minus cost of hardware and power = $1275 , not good
*in 1 year at 3x , mined total $16,425 - $4200 hardware / power = $12,225 , closer to buy / hold scenario
*in 1 year at 5x , mined total is $27,375 - $4200 hardware / power = $23,175 , better than buy / hold
*in 1 year at 10x, mined total is $54,750 - $4200 "" = $50,550 , $7450 more than just buy/hold
Check it out, let me know what I missed, (of course I know it can't be that simple, but I think the basic logic applies)
Well, you obviously missed the current situation: everything cratering. I have bought some coins outright, but I mainly mine them for the simple reason that if any one coins goes down the shitter I've really only lost the electricity cost because my equipment can mine something else. If I bought the same coin outright - let's say I got suckered into Bitconnect, for a pertinent example - then I lose my investment capital and can't do a damn thing about it.
I'm not saying you should only mine coins, rather, that you shouldn't put all your investment eggs into one basket - pretty much the same advice as applied to stocks, bonds, etc.