To mine, or to invest?
#1
By the end of August I will have R100k to dedicate to cryptos. I am looking for opinions as to which option would be better.

1. buy 2 x 6 gpu mining rigs and start mining. With the current hardware shortages I will be paying a pretty penny for what is available, or have to wait a few weeks longer for the rigs after ordering.

2. Buy R50k BTC & ETH each.

3. Buy R25k BTC & ETH each and 1 mining rig.

Any opinions would be greatly appreciated.

#2
I'd buy the crypto straight, stock will be such an issue by then.
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#3
One thing I just realized is with the current pricing of mining rigs, your ROI isn't as per Nicehash calcs but now 5 to 6 months.

#4
Personally, although there is appeal in mining, I have a little experience in trading so took that route. But had to think about - because like any bloke, I get a semi looking at all the shiny gear. Just worked it out, and although dribbled the money in over a couple of weeks, and am a couple of days shy of a month - am up 61%. Woo hoo. Could take the profits and get myself a nice little three card rig....

#5
65/25/10 investment split.

65% into safer cryptos - ETH/BTC (you will know if hard fork for BTC will be an issue by then)
25% into mid-safe cryptos - research which ones stabilize in August (Golem/Siacoin etc.)
10% into ICOS (initial coin offerings) which have the chance to make a high ROI; Status, Civic and in the past Bancor, BAT, Aragon etc.

#6
(06-14-2017, 12:30 PM)iamkiko Wrote: 65/25/10 investment split.

65% into safer cryptos - ETH/BTC (you will know if hard fork for BTC will be an issue by then)
35% into mid-safe cryptos - research which ones stabilize in August (Golem/Siacoin etc.)
10% into ICOS (initial coin offerings) which have the chance to make a high ROI; Status, Civic and in the past Bancor, BAT, Aragon etc.

That pretty much sums up the approach I took Big Grin

#7
At the moment I have 50% ETH, 15% BTC, 15% Ripple, 5% Ethereum Classic, 5% Litecoin, 5% ZCash, 5% Golem

I'll look into Siacoin, Status & Bancor.

I'm still looking for an alternate or additional wallet to Jaxx.

#8
(06-14-2017, 01:25 PM)marco79 Wrote: At the moment I have 50% ETH, 15% BTC, 15% Ripple, 5% Ethereum Classic, 5% Litecoin, 5% ZCash, 5% Golem

I'll look into Siacoin, Status & Bancor.

I'm still looking for an alternate or additional wallet to Jaxx.

Exodus is a decent one from what I heard (wallet).

Bancor (BNT) already had it's ICO and the coins will probably be inflated.

Status is this Saturday.

Siacoin is tokens for a storage cloud (basic explanation).

I personally stayed away from LTC, XRP and ETC as well as ZCash.

STEEM/STRAT/GNT/SC are my alt coins apart from ETH.

I also bought into CFI in the ICO.

Each to their own however, best of luck.

#9
My personal opinion is that it would be better to buy the crypto straight, your option number 2.

Why I think like this is because it gives you options.
Firstly, you instantly have 100k worth of crypto that would otherwise take you months/years to mine, and dont have to wait to break even, before mining longer to get the same amount of crypto.

In this scenario, if the price is skyrocketing, you immediately benefit from having more value as you already hold the crypto, whereas if you buy rigs, you are out of pocket for a while before you break even.

If the price is going up, and you are mining, your revenue might be worth more in Rand as the price climbs, but would still need to break even and would not have as much value as if you had invested the whole amount in the crypto in the beginning.

If the price is tanking, and you are losing value, you have the option to stop your losses, and sell your crypto. If the price drops further and then settles, you then also have the option to buy back in at the lower price so that you can gain more value as it starts going up in price.

With a mining rig if you have not broken even, and the price is going down, you now are out at a heavy loss, and the revenue being generated is not worth as much as you anticipated....it might even come to a situation where it costs you more in electricity than you are able earn with the crypto, and its cheaper to just turn off the rig. In this case, you now have a rig you cant use, and nowhere near as much crypto as if you had just invested in the first place. You could sell what you have earned already to get back some value, but you would have less than your initial investment. You could of course also sell the hardware to get back some value, but since the graphics cards work pretty hard, you might not get as much for them if you tell anyone you were mining with them....you might have to keep that part a secret when selling.

If the price continues to go up while you are mining, then it is profitable, and so other people will also jump onto the bandwagon to make profit too. The more miners that join, the more the difficulty increases, and your profits go down over time as profit is dispersed among the miners....more miners = less profit per miner. The way around this is to increase your mining power to earn more profit, but that means more investment....it is a very fine line. The cost for mining is not only the rig itself, it is also the running costs that take a cut of your profit...electricity for example is the biggest part. A mining rig can easily set you back 1k or more a month in extra electricity bills.

If the price is climbing fast, like ETH has been, then it is entirely possible that you will be able to pay for your rig, and mine a bunch more to make a huge profit, but for me personally it is a bigger risk than just buying the crypto. Mining does require some level of knowledge of computer hardware, and possibly even troubleshooting problems with hardware. Sometimes hardware needs to have its drivers changed, or if it does not function properly, you might have to send it back, which means possible down time and loss of earnings.

Mining normally also means your cards are working hard, and that means a lot of noise and heat, so you would need a place to put the rig that is not going to disturb you with noise and you might need cooling systems too. Many miners have fans and aircon running too, which again means more noise and electricity cost. When there are things like loadshedding, if you dont have a backup power supply, that is mining time lost, which is valuable to you. You might need to buy a UPS or something which again, costs money. There is also your internet connection, which is a trivial cost, but again, if that is not working, or sketchy, you lose money.

If you are tech savvy, and are interested in computers and crypto, I think it is a great exercise to try and make your own rig, but it is not for everyone. It can be very profitable, and it can also be very costly...you need to do your research, and be dedicated as it might take up a lot of your time. I loved my mining days, and only stopped when I moved house, and would love to try it again....if it is purely for profit, and you are not tech savvy, be careful. I think it will be less hassle, less risk, less noise, heat and time spent, to just buy the crypto, rather than to wait months to hopefully get the same amount of crypto you would have had in the first place.

If you have some support from the main guys that sell mining rigs, they can help you to make sure it goes as well as possible, so chat to them...but personally, I like the option of being able to trade the full value of the investment, and to get the full gains if it goes up in price, or sell to stop losses if it is tanking.
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#10
Option 3.

95% using iamkiko split or thereabouts.
5% mining contract

Every couple of months use a portion of the trading profits to buy another mining contract IF it's going as planned.






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