Should I buy two S19j Pro's for $3,700 USD and mine it for the next few years or just buy $3,700 worth of bitcoin (0.16 BTC) ?
My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.
At the current difficulty of mining, it will take over 250 days to mine 0.16 BTC with two S19j Pro's (assuming electricity is free) but the difficulty will be WAY higher in the next 250 days...
I love the idea of mining because it allows me to dollar cost average into the market and there is no KYC involved.
Mining and buying cryptocurrencies in a bear market both have their own advantages and disadvantages. Here are some things to consider:
Mining:
Advantages:
If you have the technical expertise and equipment, mining can be a way to earn cryptocurrency without investing fiat currency.
You have the potential to earn more cryptocurrency than you would if you bought it outright, depending on the price and difficulty of mining.
Mining can also support the decentralization of the network, which is important for the long-term health and security of cryptocurrencies.
Disadvantages:
Mining can be expensive and time-consuming, especially if you need to buy or upgrade equipment.
The cost of electricity can be high, and may not be profitable in some areas.
Mining may not be as profitable in a bear market when the price of cryptocurrency is low.
Buying:Advantages:
Buying cryptocurrency can be a simpler and more straightforward way to invest in the asset.
You can take advantage of price dips and potentially buy cryptocurrency at a lower price.
If you're investing for the long term, buying and holding may be a more passive and less time-consuming way to invest in cryptocurrency.
Disadvantages:
The price of cryptocurrency can be volatile and may fluctuate wildly in a bear market, which can be stressful for some investors.
There are often fees associated with buying and selling cryptocurrency, which can eat into your profits.
There is always the risk of losing your investment if the price of cryptocurrency drops significantly.
Ultimately, the decision to mine or buy cryptocurrency in a bear market depends on your individual circumstances and preferences. It's important to do your own research and assess the risks and potential rewards of each option before making any investment decisions.