BTC Investment vs. Bitcoin Mining Rig Investment: Which One Should You Pick?
Since the beginning of the year, Bitcoin has surged by 40.71%, reaching over $73,000 in March, once again attracting widespread attention. Searches related to “Bitcoin” remain high, with “How to get BTC” being a hot topic of discussion. Owning 1 BTC is a dream for many, as it can be exchanged for a Cybertruck, 17 Apple Vision Pros, or 26 ounces of gold in the real world.
How to Get BTC?
Currently, there are mainly two ways to obtain BTC: one is to purchase it through the crypto market, and the other is to invest in Bitcoin mining rigs for mining. Thanks to the emergence of Bitcoin spot ETFs this year, it has provided a way for a wider range of investors to invest in BTC. Unlike directly purchasing BTC through crypto exchange platforms (hereinafter referred to as “exchanges”), Bitcoin spot ETFs allow investors to buy and sell BTC without actually owning BTC.
Bitcoin mining is the most “natural” way to obtain BTC. Mining involves using computers to solve complex mathematical problems to verify and process Bitcoin transactions, thereby earning new BTC. This process is similar to mining for gold in nature. Miners require tools, equipment, and time to search for and extract gold. Once miners obtain it, they can either store it or immediately sell it on the market.
How to View Bitcoin Investments?
Investing in Bitcoin presents a high potential for returns, along with high risks but relatively low barriers to entry. Nowadays, almost anyone can purchase BTC on exchanges with minimal financial requirements. The biggest hurdles, aside from regulatory concerns, lie in acquiring basic knowledge, such as understanding how to deposit funds, place orders, and withdraw funds. However, most exchanges now typically offer beginner tutorials, making it easy for individuals to buy BTC after a thorough study.
Utilizing the price fluctuations of Bitcoin is the primary means of earning profits through investing in Bitcoin. However, incorrect judgments during significant price fluctuations may result in substantial losses for investors.
How to View Bitcoin Mining Rig Investments?
Investing in Bitcoin mining rigs is a form of investment that requires a significant upfront investment and has a relatively long payback period. To obtain BTC through mining, investors need to patiently wait for a period of time to recoup their costs and start making profits. The larger the hashrate of the purchased Bitcoin mining rig and the lower its power consumption, the higher the daily net mining income.
Due to various factors affecting mining rewards, including mining difficulty, block rewards and transaction fees, hashrate, and electricity costs, it is difficult to accurately calculate future mining income. However, estimates can still be made based on the current mining difficulty and the average miner fee over the past 7 days.
Taking the latest generation Antminer S21 Pro as an example, priced at $4,423 on the official website, based on electricity costs of $0.05 per kilowatt-hour, and calculated at the current difficulty of 88.10T, connected to a mining pool with PPS+ settlement and a 4% fee rate. It can mine approximately 0.00018017 BTC per day, with a daily electricity cost of $4.21. If the price of BTC remains at $60,000, the static payback period is approximately 409 days.
Bitcoin Investment vs. Bitcoin Mining Rig Investment: Which Path to Choose?
Advantages and Potential Risks of Investing in Bitcoin:
- Simplicity and Convenience: Purchasing BTC is relatively simple, requiring only buying on exchanges or platforms offering Bitcoin ETF services, with low entry barriers.
- Liquidity: Holding Bitcoin offers high liquidity, allowing trading on corresponding platforms at any time.
- Risk: Bitcoin markets exhibit high volatility, with prices subject to significant fluctuations, potentially leading to investment losses.
Advantages and Potential Risks of Investing in Bitcoin Mining Rigs:
- Long-term Returns: Although investing in Bitcoin mining rigs requires initial capital and a longer payback period, once recovered, continuous mining returns can be obtained, offering long-term investment potential.
- Strong Risk Resistance: Holding Bitcoin mining rigs can diversify investment risks, not solely relying on Bitcoin price fluctuations.
- Risks: Bitcoin mining is influenced by local regulatory policies, including mining taxation and energy policies. Changes in policies or actions taken by regulatory authorities to restrict Bitcoin mining activities may affect miners’ operations.
For those seeking a rapid plunge into the crypto realm and the adrenaline rush of high-risk ventures, direct investment in Bitcoin offers allure. But if steady returns and the capacity, both financially and energetically, are your forte, then investing in Bitcoin mining rigs for mining could prove more lucrative.
Disclaimer: This article is for reference only and offers no financial advice.
About ViaBTC
ViaBTC, founded in May 2016, has provided professional, efficient, safe and stable crypto mining services for over one million users in 130+ countries/regions around the world, with a cumulative mining output value of tens of billions of dollars. This world-leading, all-inclusive mining pool offers mining services spanning more than ten mainstream cryptos that include BTC, LTC, and KAS. Backed by one-stop services covering ViaBTC Pool, CoinEx Exchange, and CoinEx Wallet, ViaBTC strives to offer global users more supporting tools, stabler and more efficient mining services, as well as better product experience.
