Mining or buying?



  • Hello,

    My name is Archer and I'm from Germany.
    A few days ago, I became aware of Burstcoin.

    At the moment I mine with an old - unused - computer and a few old drives with a total capacity of round about 3 TB.

    I would like to invest more in Burstcoin. Now the question arises: expand mining or buy Burstcoins? In any case, I would hold the coins.

    125TB (25x Seagate Expansion Desktop (2015) + Rescue 5TB, USB 3.0 Micro-B (STEB5000201), 116 €, ~ 23.20 € per TB) would cost ~2900 €. According to the Burstcoin Calaculator I will get 41.017 burst a month with 125TB.

    On the other hand I would get 164.557,51 bursts for the 2.900€...

    What would be smarter?

    Thanks!
    Archer



  • in about 4-8 months you would already get 164,557 BURST, but that depends on luck factor, and network diff, and block reward decreasing 5% every month.


  • admin

    I'd mine. Four months of mining will give you the same number of Burst that you could buy, in the fifth month you're ahead.



  • I do not know what I would do, there are days I think it is better to buy burst and other days I think of investing in mining.

    The mining data is good, but you are wrong with the purchase, I explain.
    You are assuming that you buy the burst and it is already, but this is as if you buy the miners and you do not use them, I can buy today the burst to 500 satoshi and that in a week rise to 1000 and in a week I will have duplicated The investment, are just sample numbers.

    So you have to decide what you want to risk because with the buy-sell you can also lose.
    Comfort frees to risk.
    Do not get angry, it's another way of seeing things. 😉



  • @Energy what are "Satoshi"?



  • @ArcherV small measure of a bitcoin the smallest infact ( after 8 digits



  • okay... i think i will go with mining.



  • @haitch As much as I apprec. and respect you opinion I tend to disagree on that Statement.

    --nonsense deleted-- ..

    With the latest issues Net Diff can only INCREASE and will - as Burst becomes introduced to more People, thus more start mining etc. . I understand that in the Long run it has nothing to do with the recent suspected Botnet case, though its a Topic. Despite of that the more sucessfull the coin becomes, the more TB of mining there will be - be it via a guy suddenly adding 3-5% of the whole Network within a day or be it with more People slowly but steadily increasing the Net Diff. In the end it makes no diff, just the Speed alters/varies this process is taking its time.

    Net Diff has at least tripled within the last 2-3 weeks, but lets say doubled for the sake of it to be conservative and not fud.. There is NO sign that this process is going to be reversed anytime soon. U can talk about some progressing kondratieff Zyklus maybe. (Smallish/er ) miners will fall apart as they more and more see no Point in mining with tiny GB for virtually nothing.

    Biggisher miners will face more and more competition.

    I stick to my opinion as a result of this, -pure- mining Assets and their Prices on the Exchange will suffer severly until profen otherwise.. As the assumptions are based on 1/3 or even less the numbers were not only when they were issued but only 4 weeks ago. Id LOVE to be able to shorten Assets but thats a complete different Story and prob. good so.

    At the same time, current market Price Burst against the $ or Satoshis is stagnating or falling - after a huge hike. AE Prices, the Investment Needed compared to how much you will mine (during the next 4 months) nobody knows. 5% decrease each month is certain, the amount of how much net diff will even raise faster - nobody knows. But the trend is upwards, noone can deny that.

    Thus, where does the Statement Comes from mining is the better Option than buying and will have an adv. withing the short timeframe of only 4 months I wonder?


  • admin

    @Marc Everyone has their view point.

    I believe in mining the coin, and am putting my money behind that opinion.



  • I think big farms will begin to demand higher sell points for their investments. I would expect the price of Burst, long term, to go up.



  • the net diff expressed in PB, weekly average over the last month:

    4: 32.1217
    3: 42.5233
    2: 48.4636
    1: 56.7552

    looking at daily averages for the same time frame magnifies+distorts the growth:

    28: 29.5712
    27: 30.3402
    26: 34.9577
    25: 32.8571
    24: 32.837
    23: 30.8564
    22: 33.4321
    21: 38.08
    20: 39.4872
    19: 37.2882
    18: 42.2495
    17: 45.6668
    16: 51.3343
    15: 43.5573
    14: 45.7503
    13: 45.7094
    12: 46.4589
    11: 49.5296
    10: 50.0223
    9: 48.6411
    8: 53.1335
    7: 50.3384
    6: 50.5754
    5: 53.4078
    4: 53.3213
    3: 59.0123
    2: 62.9972
    1: 67.6338

    I will still mine and continue to add HDDs instead of buying at the exchanges.



  • @ArcherV in case of being 'unsure', you can always diversify and mine and buy 🙂 Buying always will assure you the freedom of trading...


  • admin

    @vaxman Mining.



  • @ArcherV said in Mining or buying?:

    Hello,

    My name is Archer and I'm from Germany.
    A few days ago, I became aware of Burstcoin.

    At the moment I mine with an old - unused - computer and a few old drives with a total capacity of round about 3 TB.

    I would like to invest more in Burstcoin. Now the question arises: expand mining or buy Burstcoins? In any case, I would hold the coins.

    125TB (25x Seagate Expansion Desktop (2015) + Rescue 5TB, USB 3.0 Micro-B (STEB5000201), 116 €, ~ 23.20 € per TB) would cost ~2900 €. According to the Burstcoin Calaculator I will get 41.017 burst a month with 125TB.

    On the other hand I would get 164.557,51 bursts for the 2.900€...

    What would be smarter?

    Thanks!
    Archer

    as difficulty is increasing every day, return on investment is decreasing every day as a result, at least when that investment is in hardware... the "profit calculators" don't do a very good job as factoring this in, especially since they simply don't know how many more folks will join and continue to lower the ROI on every terabyte you have... so its a complete risk and gamble that the 6 months today to break even, might turn into 12 months or 24 months in the next few months...

    so you're not only fighting the ROI on the equipment to create the burst, but you also have to worry about how much will the value of a burst be in the next 6 months or a year or whenever that break even point is reached... you're fighting two fights when you buy hardware in hopes you mine the burst that you hope will have a constant value based on todays value... and we simply don't know future worth... if burst goes up you win, but likely even MORE folks will come and increase difficulty that much more, making your ROI on the equipment worse...

    but lets say you simply buy the burtscoin today, your only worry is what value will it have 6 months from now, not what your ROI will be to justify the expense of the hardware, so there is a LOT to say about simply purchasing it outright and not taking a risk on the hardware side of it, as thats likely a lower gain every day... but both scenarios require burst value to increase ultimately right, but only one has the downside of more miners lowering the ROI on a hardware purchase...

    so for now the better risk I would say is simply buy and hold burst... not hardware... you likely have more liquidity of the burst alone, than burst and hardware, I mean, if burst crashes, who is going to be there to buy all those hard drives from you if you decide to exit the marketplace completely? do you have something you can do with all that hard drive space, or will it sit idle and empty for a long time before you can make use of it, and how much will you be able to sell it for if the marketplace is flooded with others offloading their used hardware because they too stopped mining?

    I think the most logical and best option if you're going to spend the money... buy the burstcoin direct, and make sure you have a way to liquidate it from some exchange into your local currency, that way if it drops 5% or 10% or 20% in value, whatever threshold you set you can exit and have some actual currency... meanwhile you use your existing hardware and free space, to create plots, that will slowly add a few burst here and there to your purchased amount, so you can enter with less risk, and still increase overall amount of coins, without additional cost aside from electricity and depreciation on your current hardware... I think logically this is what burst was always intended for, using existing hardware, rather than the risk of purchasing exclusive hardware and rolling the dice on ROI...

    so there you go... a complete non-answer with an answer... but we simply don't know how it will pan out over time... if difficulty keeps rising at the dramatic pace it has the past month, hardware is going to be the losing bet, and if burst rises and mitigates ROI you'll still come out ahead without having purchase a single extra hard drive to do it, but you won't have any new burst coins after the ROI is reached, but you'll have far more liquidity in case you decide to exit and stop mining altogether... the choice is yours... its a pickle, but I think using existing hardware and purchasing burst is the best if you're going to spend money, OR invest in something else entirely while using existing hardware to make burst, a nice NASDAQ index fund is always my favorite bet over time...