Bitcoin mining vs. Bitcoin buying: what is better?
Interest towards Bitcoins increases every day, which consequently rises Bitcoin's price. Thereafter the most popular question in the e-currency sphere nowadays is “If it's better to mine Bitcoins or to buy them?” Home mining has already become a type of “hobby”, by means of which you can generate a nice amount of Bitcoins. Yet it has turned to be much more difficult, what makes it impossible without a significant amount of money. Still, if you had $10K to invest in Bitcoins today, would you better just buy Bitcoins or use money to get mining equipment and mine them? Let's find out which option is the best and most profitable one.
How much Bitcoins will you get for $10K?
According to the current exchange rate you can get approximately 26 Bitcoins. You can easily check the exact amount of Bitcoins you will receive using Unichange.me calculator. Buying Bitcoins with Unichange.me is an easy, quick and reliable option. And now we are going to check if it is possible to surpass this amount by means of mining. Of course there is no evident answer to this question, as there are lots of factors influencing the mining process.
The first and the most important thing you have to choose is the mining rig, as most of the funds are going to be spent on it. Unfortunately, the majority of mining companies do not have necessary products in stock and you will have to pre-order it.
How many Bitcoins is it possible to mine with $10K?
For example, you spend around $9000 to buy 7 Antminer S4-B2 miners and decide to host the miners in a hosting center in China, since it allows to avoid storing and cooling the miners. The shipping directly to the hosting center costs approximately $300. One more factor you have to remember and include in your list of expanses is the electricity cost.
Now, it’s time to see how many Bitcoins will it be able to get. To check the about amount of Bitcoins you are able to get, use Bitcoin mining profitability calculator.
Yet, none of the calculators shows the final amount more than 26 Bitcoins through mining. The results vary - most calculators suggest the amount of 23 Bitcoins and some suggest as little as 10 Bitcoins. You can't say for sure which ones are more exact as different interests are taken into account. You should also keep in mind that you are able to get the money only 4.5 months after you’ve made your initial investment.
So who’s the winner ?
The answer may be following: if you’re looking at mining as a long term “hobby” than perhaps it can generate you more coins in the long run. You also need to realize that it’s risky as well, because miners can break down, moreover there’s no way to be aware how high or low will the Bitcoin mining difficulty so numbers can change drastically. If you want an immediate success than you should definitely go with buying Bitcoins instead of mining them.
The conducted research is theoretical and it doesn't include a lot of factors, that may occur while mining, though it gives an idea about mining process in general.