In this article, I walked through the benefits of bitcoin mining, and the difference between investing in bitcoin mining vs bitcoin.
Learn how bitcoin mining helps SMEs (Small and Medium Enterprises) to comply to ESG (Environmental, Social, Governance) principles becoming part of Corporate Governance Strategy at the overlap of Technology - Energy - Financial Services - fostering the development of sustainable energies (solar, wind, hydro, biomass) and driving Geopolitical Transformations around the world.
Before starting, these are not investment advice. Everyone should do her/his research and make decisions based on specific personal, or business conditions, goals, and interests.
https://youtu.be/b-7dMVcVWgc?si=wtYNlcxj8h0XSY7V&embedable=true
INTRODUCTION
There are plenty of reasons to invest in bitcoin mining, and why now in 2024 is the best moment to do it, but if you have only four minutes, rather than reading this article I would suggest watching Dirty Coin’s teaser below, a short film by
https://www.dirtycointhemovie.com/?embedable=true
INDEX
- What bitcoin mining does
- Why invest in bitcoin mining vs directly bitcoin
- Why invest in bitcoin mining vs (DCA) Dollar Cost Average
1. What bitcoin mining does
While bitcoin mining is silently becoming an industry, the mainstream is slowly realizing the crucial role of location-agnostic flexible load and green data centers, for the global energy sector.
In developing countries, bitcoin mining provides a solution to energy scarcity, costs, and concern for limiting carbon emissions, in underdeveloped ones, solves the electrification in rural areas (600 million only in Africa).
Bitcoin mining fosters a circular economy, brings jobs, cleaner air, and economic prosperity, incentivizing financial inclusion.
Bitcoin mining contributes to the security of the bitcoin blockchain network, which is the only public financial infrastructure, openly accessible worldwide, funding the development of sustainable energy as a buyer of last and first resort from solar, wind, hydro, and landfill.
2. Why invest in bitcoin mining vs directly bitcoin
People interpret digital asset investment in different ways.
There are professional traders and everybody else. The job of professional traders is to make short and long-term profits out of any assets they invest, then there are some people who want to speculate because digital assets opened up a low entry barrier type of investments, with potential upside. Other people invest in digital assets because understand, or see the technology’s long-term vision.
Based on these three macro categories, people interpret digital asset investment in different ways.
For an individual who believes that bitcoin will grow infinitely in value, investing in bitcoin is like investing in a property in a prestigious area of an economic hub of an international city (as Micheal Saylor said). Those people will hodl (terms that refer to the crypto community strategy of not selling, well explained in the video below) forever or won’t spend their bitcoins as long as possible, but rather borrow fiat money against bitcoin, using them as a commodity.
Apart from the type of investors who just want to speculate, bitcoin is considered a long-term investment because the appreciation in value is by design due to the scarcity (only 21M) combined with supply-demand dynamics.
So, why invest in mining rather than directly in bitcoin? The two are not mutually exclusive. Generally, those who invest in mining have already part of the portfolio invested in bitcoin, or other digital assets.
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Bitcoin mining allows one to earn bitcoins instead of buying them via an exchange, OTC, or a security, enjoying potential tax reduction, leveraging opex (operations expenses) and hardware (CAPEX) depreciation.
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Earning one bitcoin through mining costs less than buying one bitcoin itself.
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An individual who needs some liquidity out of their assets, might not be interested in the bitcoin long time horizon (speaking about decades).
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Some people might prefer to invest less, in less time, and get some yield regularly, as an alternative form of
dollar cost averaging (investing a fixed fiat amount on a regular basis, regardless of the share price). -
Investing in mining you invest in a hard asset (hardware, and real estate facilities) that has an intrinsic value and can be sold to a second market, as well as producing passive income in bitcoin.
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Some people would like to mine themself, but can’t for many reasons, one of them is electricity cost too high that wouldn’t make them profitable.
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With a horizon of 3-5 years, investment mining could be more profitable than bitcoin.
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Investing in bitcoin mining combines high profitability with a high cause. Mining is fostering the electrification and civilization of underdeveloped areas of the world, securing the network, contributing to decarbonization, and incentivizing the usage of sustainable sources of energy (because it is cheaper otherwise the cost of energy is too high for the miners to sustain the cost of energy) and stabilizing the grid reducing energy bills cost, bring back jobs in rural areas, reducing pollution, all of that ESG compliant.
3. Why invest in bitcoin mining vs Dollar Cost Average
Bitcoin dollar-cost averaging (DCA) is a strategy that involves buying a fixed amount of Bitcoin at regular intervals, regardless of its price.
The goal is to smooth out Bitcoin’s price volatility by buying it in small increments over time. This method is popular among long-term investors who want to build a position in Bitcoin without exposing themselves to the risk of buying it all at once at a high price.
To implement a Bitcoin DCA strategy, an investor can set up a recurring buy order with a cryptocurrency exchange or use a DCA app that automates the process. The frequency of the purchases can be daily, weekly, or monthly, and the amount can be adjusted based on the investor’s budget and risk tolerance.
One advantage of Bitcoin DCA is that it removes the emotional element from investing. Instead of trying to time the market and make decisions based on short-term price movements, investors can focus on their long-term goals and stick to their investment plans.
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By investing in mining, you are obtaining a portion of newly mined BTCs that accumulate over time, and after 3+ years the accumulated yield surpasses what would have been invested directly in BTC. Bitcoin mining is the most profitable solution (ROI) for long-term investors looking to hold for 3+ years.
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Bitcoin mining is a form of passive income generation, with daily returns, whereas investment in BTC directly generates no yield
- Bitcoin mining performs better than DCA in BTC during market downturns and price dumps (with mining you keep accumulating new BTC every day, with DCA the value of investment simply goes down)
CONCLUSION
I will walk you through the process if you want to start mining bitcoin quickly and securely getting bitcoin rewards after 24h,
If you are an accredited investor and want to evaluate either a site development investment, or hosting turn-key, or have specific requirements and questions, you can send me an email, schedule a call, or connect:
Linktree - https://linktr.ee/lauraspinaci_da
Linkedin - /in/laraspinaci
X - @lallispinaci
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