Pay Your Money and Take Your Choice: Buying vs Mining
Analyzing the current situation with Bitcoin mining it is easy to see that mining is not as profitable as it was at the very beginning of its history. Users would use their computers without any sophisticated configurations, but after the tremendous splash in the digital world in 2017, the network complexity has increased dramatically.
Despite all the difficulties and expenses on the mining process, experts are sure that Bitcoin mining remains a profitable business. However, if there is a choice between purchasing ready digital money and mining investments, it all comes down to the greater number of advantages for the first option.
Advantages of buying Bitcoins over mining
1. Users having made investments into mining equipment continue to spend money on its storage, cooling and security system, Internet, electricity and numerous other expenses. Therefore, investors first are looking forward to the pay-off period, which is on average not less than 10 months, and get no extra profits.
2. The second benefit is that users get their Bitcoins at once while it takes a long while to mine the digital money. Using the trading option Bitcoin owners are able to sell it when the value moves higher. Those buyers who see a future for Bitcoin as a digital currency might simply hold it for a long time. At the same time, the mining process involves not only continuous financial support, but also much of personal time. With purchasing the situation is easier, once there is a purchase, there is a product in your account.
3. Buying Bitcoins have more advantages over mining because of the complexity of the last. At the present time there are somewhere around 18 Million of the total mined Bitcoins. That’s a huge number coming close to the cap of 21 million. As over 85% of Bitcoins are already mined, the difficulty level has risen. More and more people are getting involved in mining, which increases the competition immensely. It is unlikely that users will mine the whole block. Therefore, the reward will be divided among a great number of miners.
4. Another advantage of purchasing digital assets is that it does not require technical skills. Definitely, certain companies supply their customers with already installed mining farms just for some extra charge, but operating such a huge investment a user has to be aware of the difficulties that might come across the complex mining process. Provided that he collects a miner himself, there is an enormous volume of technical skills and knowledge needed to prevent possible disorders.
5. To conclude the last advantage to cover is Bitcoin’s volatility. Bitcoin may remain underpriced for some period of time, but the cost for its generating could either remain the same or rise. If so, purchasing Bitcoins stays a more satisfactory solution.
Mining followers argue for Bitcoin mining saying that mining does not require extra fees to be paid to get Bitcoins, but only setting up all the mining equipment for the initial price. In addition, mining allows its users to watch their transactions and a number of crypto enthusiasts the manufacturing process is far more enjoyable than trading.
In the end, buying Bitcoins is cheaper than mining them. Purchasing some Bitcoins, holding and watching their value increase must be good time. In general, people are to be venturous enough to make operations and investments with digital assets. Even purchasing Bitcoins carries huge risks, and by extension if crypto enthusiasts do not prefer easy ways, then mining Bitcoins will become a great challenge.