Best Bitcoin Investment Strategy: Lump Sum Purchase vs. Mining?
200 sats \ 7 comments \ @fbv000 19 Jul 2023 bitcoin
Let's say you have between $30,000 to $50,000 USD to invest into Bitcoin, what do you think it would be the best way to invest it?
The two primary investment strategies I'm considering are:
  • Lump Sum Investment: Immediately purchasing BTC with the entirety of the investment capital at the current market rate.
  • Bitcoin Mining: Allocating the funds towards the procurement of mining equipment, as well as the ongoing electricity and other related expenses. In this scenario, the electricity cost is estimated to be around $0.07.
While I have done some preliminary research and am aware that each of these options carries its unique set of advantages and challenges, I am particularly interested in hearing directly from those of you who have hands-on experience, especially with Bitcoin mining.
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0 sats \ 0 replies \ @2bithits 20 Jul 2023
Lump sum
Unless you have access to cheap electricity AND its guaranteed to be stable & available for the next 3-5 years.
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0 sats \ 0 replies \ @era_sed 19 Jul 2023
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0 sats \ 0 replies \ @Eljay 19 Jul 2023
Lump sum. I cannot fathom holding dollars waiting to buy bitcoin at a better price. Thats a risk I am not willing to take. And at the current phase in the cycle its a no brainer!
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0 sats \ 0 replies \ @grayruby 19 Jul 2023
Here's what I looked at when I sold a property and had some proceeds to filter into Bitcoin:
Lump Sum, Weekly DCA, Daily DCA, Mining, Bitcoin Adjacent stocks- MSTR, Miners etc.
What I decided to do was lump sum 5k and then Daily DCA the rest over a year. I did buy some MSTR and Hut 8, but I have since sold those positions. Made a decent profit on MSTR but hut8 not so much.
I didn't go with mining because I was concerned about the mining services companies at that time and managing the off peak, on peak rates at home to make sure I was profitable home mining was a pain in the ass. I looked into raising capital from a few folks via a bitcoin bond to invest in mining but it didn't pan out, had a couple people interested but ultimately decided just buying bitcoin was the best and least risky route.
Disclaimer: My decisions were based on the early days of the bear market. I knew we had a long slog ahead of us and I had a lot of time to DCA so your calculus might be different if you think price is going to get away from you.
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0 sats \ 0 replies \ @premitive1 19 Jul 2023
lump sum. if you aren't mining to secure the network don't even bother.
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0 sats \ 0 replies \ @era_sed 19 Jul 2023
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0 sats \ 0 replies \ @nullama 19 Jul 2023
Bitcoin mining is now serious business.
You will have to keep making sure your miners are running correctly, and after some time you'll have to upgrade to the more efficient ones. Also, difficulty keeps going up, so it's always harder and harder to hit a block. You might be able to get more bitcoin in the long term, or maybe not. But work will have to be done regardless.
It's a personal choice, but if you just want to invest, probably buying Bitcoin directly is the right answer for most people as you won't have to do the mining work.
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