Quote from: bitdominion on February 23, 2014, 08:29:55 AM

Quote from: Syke on February 23, 2014, 01:58:15 AM

Quote from: bitdominion on February 23, 2014, 01:10:46 AM

Investing involves more than putting all your resources into one pipeline. While we definitely purchased large amounts of BTC at the time, mining helped offset the long term risk associated with market volatility. Mining provided steady and better predictable results to support the uncertainty therein.

There's 2 ways to get bitcoins, buy them or mine them. I'm having a hard time seeing how getting 46 BTC rather than 70 BTC is offseting the risk. Why would you want to mine less than you can buy?

This is exactly the question we asked ourselves when KnC first arrived on the scene... the price was too volatile to know what one would profit from it in the timeframe the miner would be running; Gox had just spiked from $38 - $260 then plummeted, then back to $140, then tapered off in a suicidal manner before adjusting to a (+) longer term trajectory. Our thinking was dropping $7k without knowing where the buyin leads was more risky than (could have been 70btc or 53btc) purchasing a miner which was a more predictable speculation (and we had already had success with)

Again this is hindsight and the question would hold very different meaning if any number of crazy things happened to the market in the interim

There are also stages of adoption some bitcoiners go through which factor into my learning experience:
'I believe this is going to be the best thing in the world!'
'Wait what about all this other technical stuff?'
'How do I get as much value as possible then turn it back into fiat currency?'
'Holy crap, I'm never day-trading again'
and finally 'Oh, so if I just hold it everything works out?'

it is also a human nature thing...i as a noob and others learned enough in our noobieness stage to feel comfortable about getting a 'product' ie a physical miner to mine coin to an address .....dropping 7K for virtual coin to a virtual address was a bit too much of a leap i my noob days....(to be fair i thought knc unit would pay for itself at the then 400gh in like 8 or 9 months..and then i'd maybe get 9 months of utils paid on the house on it ..ie a hobby i think oct 18th when i got the unit it was like 150 usd a coin if i remember right..the next month or so it went to 1250 or whatever...so there is that aspect to this...)

so it was a hobby...now....i'm kinda at cross purposes...i should probably drop miners and buy but prob will keep one (hey imho of the depths of my silly mind......er what the heck) ..but probably i should dump the 2nd miner and just get coin

i suppose later in 20/20 hindsight i wll then have it beat into my head simply to buy coin...but again ...i'm a dull hairy silly primate..it takes a bit to pound stuff in my monkey brain...but then again 1 miner is still a toy to play with (hey coulda got a bass boat instead..its all good)

but again imho everyone buys some kinda miner 1st then they speculate....or at least everyone i knew as a noob did this

Searing