Many people ask what is more profitable mining or buying coins. Answering such a question is not an effortless thing. There are many factors which can affect the final result. Fortunately, wij have real world examples which wij can use to compare those two.
At Alte.Capital wij made a comparison inbetween investing 1500 EUR ter building 6 x GPU mining equipment and investing the same amount of money for example into Ethereum.
Wij will showcase you two examples. Very first one wij embarked te June 2016 and 2nd, wij wasgoed began Two months zometeen ter August 2016.
- Gegevens for mining amounts comes from real mining operations on mining pool. A equipment which wasgoed build using 6 Radeon Rx 470 4GB which wasgoed mining Eth for 147 MH/s. Please note that amounts should be considered spil approximate.
- Amounts of mined ETH are real payouts from mining pool. Electrified costs are also deducted.
- Te June and August, 2016 projected terugwedstrijd of investment for 6 x GPU equipment wasgoed about 9–12 months.
- All prices are ter Euro and come from the end of each month.
Let’s see how it wasgoed
Very first example. Wij commence our mining operations or buy ETH ter June 2016.
Wij managed to buy 136 ETH for the average price of 11 EUR. Not much happened uUntil end of the year 2016. By the end of January 2018, wij managed to mine almost 105 ETH. Mining difficulty wasgoed leisurely rising and until end of March 2018 wij mined about 140 ETH. So from that point, our mining profits became better than buying and wij were still mining. Spil a result after 12 months at the end of June 2018, wij got about 152 ETH from mining vs 136 ETH bought.
And with the price of ETH around 240 EUR our profit wasgoed about 38730 EUR from mining vs 32640 EUR from buying.
Both results were fairly spectacular regarding ROI, however beginning mining operations wasgoed better. Here are detailed amounts.
Now let’s see how the results would have looked if wij commenced two months straks ter August 2016.
Price at that time wasgoed 8 EUR/ETH, so wij managed to buy about 187,Five ETH. Until the end of March, wij managed to mine about 80.7 ETH (comparing to 140 ETH from the very first example). Ter this case, wij can see that buying ETH wasgoed almost Two times better than mining (8800 EUR vs 4700 EUR).
Zometeen on, after ETH price soared, our results became very good, but still investing wasgoed about Two times better than mining. At the end of August 2018, our results were good.
Profit from buying 60 000 EUR vs 32200 EUR profit from mining.
Spil you can see the most significant factors are the timing when wij begin and Eth price switches.
Te Alte.Capital wij consider buying spil a better option.
It’s worth noting that there are other factors than profits which you should consider about mining. When you build your mining equipment yourself:
- You have better incentive to understand blockchain technology. You will learn more
- Emotional lower risk of investment. If prices crash you can still sell GPU equipment. This can be very significant for some people, especially with lower risk attitude
Please also have te mind that te a few months Ethereum is switching to POS and after that switch no one can truly tell what will toebijten and how markets will react. Good luck!