I have NOT touched or spoken about crypto-currency (not blockchain) since 2017 because there are too many emerging “experts” on the global scene actively writing and talking about it.
It’s factually true that in a bull run everyone’s a victorious fortune teller. However it is in a long bear run and seemingly collapsing market that only a rare and real hero is born.
In recent days I have been personally approached on the issue of mining. It is very surprising to realise that my close acquaintances have been involved in crypto mining for quite some time already.
The most common concern is “Can or should I do mining now?” I take that they are referring to Bitcoin and Ethereum. Since their questions are in nature of general interest and maybe there is not a straightforward answer, I decide to make my response publicly on FB.
However before I answer them, answers to the following counter-questions are paramount:
Like “real property” are these crypto commodities they are mining…
1. Ever existing and will never disappear?
2. Scarce in nature?
3. To be increasingly adopted?
4. In line with the future trend?
If the answers to the above are negative any word beyond this point is irrelevant. However if the answers to the above are positive, then one has to be aware of the fact that the profitability of mining depends on the following major considerations:
1. The efficiency of the mining equipment
2. The electricity cost of POW mining
3. The maintenance and management costs
4. Trustworthiness of the mining team
5. Security and secrecy of the mining farm
6. Disposal options and value of obsolete mining equipments
7. The difficulty level of mining
8. Lastly and most importantly the market price trend of the crypto
If you know cryptos are like real estate or similar assets, would you buy the dip or would avoid at all cost? This is the question (answer).
All I can be sure is, when there are big discounts or crazy bottom price sales my wife and I will go all out shopping for our favorite stuffs.
Click here to read more : China: Cryptocurrency Mining Machines Reportedly Being Sold According to Their Weight