I’m new to this, and maybe someone has done the math, but there has to be a point where mining at a loss makes sense if the coin appreciates at a certain rate. I’m curious what that chart would look like because the smaller the loss the smaller the rate of appreciation would have to be to make a return worth it in the long run - right? More of a mine > hold > sell model. I suppose it would make more sense to put that money into the coin and hold than to put it into mining and hold, but if you’ve already sunk $10k into a rig, then running it at a loss might make more sense - especially if you can’t sell it. Is there anything that’s appreciating, that you can mine at a loss, but you can’t buy - only hold or sell?
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It’s such a multi-faceted topic. So many uncontrollable variables.
In my own mining history I can describe mining at loses, how they turned to wild gains or how I ended up with a wallet full of coins from a de-commissioned Blockchain.
I might even think that “mining at a lose” was just the vision I saw then. So I mined a trash coin BBS for a couple years. In 2018 it got down to 1 litoshi per coin. I kept mining. Flipping my small profits here and there. Come 2021 those small profits and flips turned giant. Lot of variable or questions there. Should I have kept all profits in BTC? Did I do right by using profits to buy other coins to Hodl?
Here’s a kicker. At the US’s current Deflation rate of - 7% (or more) in the past 2 years. Did I actually mine at a loss in 2018 ??? It seemed so then, but the coins ended up gaining value faster/more than the currency I used to create the coins.
Just so many variables. Does the Miner mine 100% or do they trade crypto also.
Here is an angle I often ponder. If a person wanted to buy BTC for an investment would they be better off buying the mining equipment instead and making the BTC themselves? Say 100K, you could buy 2 or more BTC right now. Or mining equipment that will , in time, achieve the same amount of BTC. Time… , if BTC went to 1million before you mined the same BTC amount maybe it would have been better just to buy it. But then since it’s worth so much, isn’t continuing to mine more of a better idea.
My personal choice, mine non-stop. Playing the $$ fad only goes to fight against Satoshi Vision. It doesn’t matter how much the Coin I hold is worth, as long as the financial backing for that Coin started with a fiat currency from a corrupt nations collective wealth.
People often overlook that we use our national currencies to transfer the value into Crypto’s and then ship them around the world. The value-less Fiat stays home, the value leaves the control of the Federal Reserve. All they can do is “print more” to combat us. For every $1 I spend mining crypto, the US Gov now has to print 2 more to balance the national budget, or change interest rates. LOL …“Are we winning?” … “No, but we’re reshaping the global financial infrastructure”.