Bitcoin: Buy or Mine?


Should I Mine Bitcoin?

In my opinion, I would say yes if you would enjoy doing it as a hobby. It is not a significant difference compared to buying it right now. However, you could be mining bitcoins for cheaper than you could buy bitcoins or buy bitcoins for cheaper than you could mine them. You can do the math and make your best guesses at what the hash-rate, difficulty, the price of a bitcoin, shipping, electricity, etc… You can make an upper and lower bound of what you will make and compare it to what the price would be if you just bought the bitcoins outright. If the price jumps up in a few months, you won’t be able to buy it for as cheap as you could mine it. I would recommend mining bitcoin if you are a DIY hobbyist type of a person that would enjoy doing such a thing.

I know it sounds silly, but heating homes in cold climates might be profitable. I just bought two AntMiner S5s because I have an un-insulated addition on my apartment that does not have heat. I live in New England. I was going to buy a space heater for that room anyways. I do the mining as a hobby, but I think it would be a brilliant idea to make home heating systems as Bitcoin miners. The components would need to be able to be easily upgraded to keep up with the growth rate of the processors required to mine. I would be thinking about getting a couple for each room if they weren’t so loud. It would be cheaper than using my gas heat. The mining hardware will get quieter over time. Maybe I could attach a dryer vent around the front of it and place it in my basement having the heat come up into my apartment. This is where the future is heading. Home & Business heating will be done from the heat given off by a distributed system of supercomputers.

Should I Buy Bitcoin?

In my opinion, I would say yes. Investing is always risky and this risk is higher than average. However, with great risks, come great rewards. It has the potential to go to extreme heights, but it is impossible to tell when. It could fall to a lower price and stay there for a while. We don’t know what that price might be. It could be replaced with a superior cryptocurrency. Governments could start creating their own crypto currencies. The USD might someday be a crypto-currency that will be printed on paper embedded with a tiny chip. I think in the not too distant future, a bitcoin will be worth thousands. It might go down below $100 before that happens, but it is much too useful to stay at such a low price for very long. I can’t say whether it will be tomorrow or next year or 5 years, but the price will go up eventually. It must go up considering what it can be used for and the adaptability of the network to sustain itself no matter what the price of a bitcoin is.