Should you mine cryptocurrency or buy them?
The eternal question remains. If you have around 50,000 Rand to invest, what should you do? Should you buy some Bitcoins and then trade it around or should you mine for more currency by investing in a mining rig?
We’ve previously established that you can set up a mining rig in around 20,000 if you want to mine Ethereum and 40,000 if you want to mine Bitcoins. We have then also calculated the profit for each to be around 6000 Rand for Ethereum, and 2300 Rand for Bitcoins every month.
What we have ignored so far is the rise of value of Bitcoins in the market. If you spend 50,000 Rand today, and get some Bitcoins, you’d get 0.46 Bitcoins, or 6.08 Ethereum. Assuming that you sell this exact number of coins in 2019, what value can you expect to get?
Experts such as senior analyst Ronnie Moas predict that Bitcoins will be valued at around 236,720 Rand by the end of 2019. They are currently worth 108,968 Rands. This would mean you’d double your outlay, and get a profit of about 50,000 Rand if you decided to invest in Bitcoins
However, most people are much more bullish on the future of Ethereum, a comparatively newer currency, and see its value rising nearly 7 times. This would net you an astounding 350,000 Rand, if accurate.
Up above, we established the rise in value of currency via mining, without considering the trading component. If the value of Bitcoins doubles in the year 2018-2019, then our previous estimates in the article using the Antminer rigging setup show that we would have made a profit of 66,00 Rand, which exceeds the profit we would have made via trading, while also having the setup to mine even more coins in the future. However, if you assume that you sell your Antminer for half of what you bought it, you’d end up with a profit of 90,00 Rand from one year of mining.
This is even more prolific if you look at the value of Ethereum. We estimated an earning of 72000 Rands if the value remains constant, however, if the value does rise 7 times, then we’re looking at a profit of nearly 500, 000 Rand, which is about 10 times the value of what you invested.
Comparatively, trading the currency looks like a pretty terrible idea.
If you have the money to invest in a mining setup, then mining is definitely the way to go. The profits are far greater in mining than in trading, no matter what the market outlook is when you sell them.