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wilslaw

Mining vs Buying Bitcoin: How much can you achieve with $10k?

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Recently, Bitcoin’s price has been rising. A lot of people have made enquiries whether it is better to mine Bitcoin or to buy them. Bitcoin was initially covered due to the crises in crypto. Last year, home mining was the hobby taken up by many people. As at April 2013, it was possible to generate a nice amount of Bitcoin to home mining with your graphics card or CPU. Today, Mining has almost become impossible to do at home without investing a substantial amount of money. 

 

So how much Bitcoin will $10K get you via exchanges?
This is an easy answer, if you intend buying Bitcoin. We can get somewhere around 25BTC as at today’s exchange. The question is, Can this be gotten through mining? This depends on many factors such as, increase in mining difficulty and electricity cost.
Finding a good Bitcoin miner is quite difficult
It is important to choose carefully, since most of the money will be spent on mining ring. The products of most mining companies are out of stock and they create pre-orders, which is a problem. An example is KMC miner.


How many Bitcoins can be mined with $10K?
There are factors that determine this question. Firstly, how much will the Bitcoin mining difficulty increase over time? Secondly, what will be Bitcoin’s exchange rate once my money runs out? The second factor tests for overall profitability, and since we only comparing mining to buying, it is definitely not applicable here.


Total expenses up until now:
Miners $8750
Shipping $277
Electricity cost $0.12/KW/hour
Hosting price per day $4.587


Let’s see how much Bitcoin can be gotten out of this. 
The daily expenses add up to $7.467. This means that you can run your miner for 130 days before you run out of money. All the variables will be put into a Bitcoin mining profitability calculator to see if we can figure out how much BTC will be generated. 
Different calculators show different results, since some variables needs to be guessed. Most calculators suggested that around 23BTC will be made while some suggested making as low as 10BTC. It is necessary to keep in mind that there is also a time factor where money will be gotten four months after the initial investment has been made

 

So what is better?
Mining could generate you more coins in the long run, if you are considering mining as a long term investment, but it is also more risky.
Miners can breakdown, and if hosted somewhere, accidents could occur. Also, you cannot know how low or high, the Bitcoin mining difficulty gets to. So it is advisable to go for buying Bitcoin rather than mining.
 

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It's much easier for me to just buy and hold. Mining is for more technical people, you need to learn how to setup a rig, have a room, etc.. O.o

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I once tried to mine one shitcoin (I think it was IMP coin) and it was good for a while. Block rewards were good, mining was fast, and so on. After a while it was not worth it anymore. Hashrate increased and price tanked.

 

What concerns mining bitcoin, I think it's better to stick to buying. Because big corporative companies are doing the mining thing. 

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Interesting comparison... why I haven't heard of Google mining? They have bigger server farms for all the data.

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