To mine or to purchase cryptocurrency in 2019?

Academic
By February 3, 2019 15:59
mining invest - Coinconomist

What is better: to own or invest money in cryptocurrency? To answer this question you need to count how much can bring income for a certain time and what things should be considered.

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Let’s start, perhaps, with mining. What do you need to start to get cryptocurrency? Farm or acic-miner. What are the pros and cons of the first and the second? A farm can be configured for different computing algorithms, if the extraction of one currency becomes unprofitable, then you can customize the extraction of another crippling currency. With asic-miners, this can not be done. Asic-miners are configured to extract only one specified algorithm, and if an asic ceases to be in the plus, then it becomes unnecessary debris.

What are the farms working on?

Standard farms work on racks like Radeon RX 470, 480, 570, 580 or GeForce GTX 1060, 1070, 1080, both standard and TI. Each video card has its own features – the pros and cons. The most common graphics cards used for landing are the Radeon RX 580, and they will be taken as a benchmark in our analysis.

On average, the most profitable coin is Ethereum, the most popular of altcoins. On it we will make a calculation.

Farms come with a different amount of graphics cards. I believe that the optimal number of video cards is 8. Firstly, there is a sufficient number of appropriate motherboards on the market. Secondly, such a farm is both productive and has dimensions that allow it to be placed comfortably. On average, the price of such a new farm will be about 2500 USD. Of course, you can take a risk and buy the same used farm, its price will average 1400-1500 USD, but there are no guarantees that it won’t brake in a month.

Mining profitability

On average, the RX Radeon 580 8GB displays a performance of 30 MH / s, which collectively will allow the entire farm to develop a capacity of 240 MH / s. We can calculate the profitability of such a farm with mining Ethereum.

Etherminimg

We will see that in a month such farm, with actual at the time of writing the article courses and the complexity of extracting Ethereum, will bring about 83 USD or 0,756 ETH. It is almost 1000 USD a year or 9,072 ETH. That is, if the complexity of the extraction is stable, at the end of the year you will have 9,072 ETH and your farm, which will continue to produce crypto products.

Cryptocurrency purchase

Consider an alternative. What if you invest not in the farm, but in the crypto industry, for example, ETH. By purchasing ETH now we would get about 23.14 ETH.

If we decide to own something then at the end of the year we get 9,072 ETH and stay with the farm, which at that time will lose about 30-40% of the cost. This loss is at least $ 830 from the farm’s price, and, accordingly, its market value will be $ 1,670, which is equivalent to $ 15.46 ETH if the ETH price is stable. In aggregate it can be said that mining theoretically gives us the opportunity to accumulate 9,072 ETH plus, provided that the price for ETH does not change, there are still 15.46 ETH in the form of farm production capacities. Under such conditions, extraction is more profitable, since it allows us to accumulate more crippling goods if at the end of the year we will change the farm at ETH.

Features of two options

However, mining is always accompanied by the cost of electricity and such troubles as breakdowns of components and periodic failure of farms. All this in aggregate will reduce the amount of cryptocurrency production, or increase the amount of investment if we would like to save all the coins in the hope of a future increase in their prices. Accordingly, if you want to earn money, then the best way at the moment is to simply buy the coins themselves and hold it for a long time.

Of course, it is possible that the prices of cryptocurrency will fall again and we will lose a significant part of the invested money. At the same time, the difficulty of coin mining can be greatly reduced and the farm loses its value, but at a much lower pace. So, in this case, it is more profitable for us to invest in the capacity for extraction and this will to some extent save us from the loss of a large part of the investment.

What to choose?

So, to decide how to do better, we need to weigh the odds that the market will start to grow or fall. As everyone knows, at the end of 2017 the price of the main crypto foreign currency – Bitcoin, set the historical maximum – 20,000 USD. Since then, the price has fallen to a mark of $ 3,200, indicating that Bitcoin fell to 84 percent of its maximum price. Such a fall is one of the deepest bitcoin in existence, but it is far from the first.

For those who have been working on the market for quite a while – all that is happening now was predictable. The fact that Bitcoin lost 84 percent of the cost only suggests that the market is very close to its minimum and will start recovering after some time. Accordingly, the chances that prices for cryptocurrency will increase significantly higher than their chances of falling.

Now let’s answer the main question of this article. What is better – to start producing or investing in the cryptocurrency itself? The answer is obvious – invest in cryptocurrency. Perhaps Bitcoin will lose all 90 percent of its maximum price and pull down the altcoins, but this should be considered only as a good chance to buy a cryptocurrency at a better price.

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Academic
By February 3, 2019 15:59