Want to start mining, 10k budget.

Pacolebon · December 11, 2021

Hi all, i'm new to the mining world, (just mined a little with niceash and some Chia for fun)

Now i want to try to get seriously into mining and i have 10k to invest and a place to place the rig.

Starting with the basics, would you invest all in a single Coin (like ethereum) or would you split in two or more?

GPU mining or something else?

PS: do not worry about the invest, i can afford It without prob and more importantly my wife said ok!

tikker · December 12, 2021

Obligatory "not financial advice" and "I don't take any responsibility"

Lately I've changed my stance a bit. If you have gear ready to go, by all means do it, but currently I'm going to say don't drop as much as 10k on mining equipment anymore. Coin prices may be high, but so are hardware prices and the bull market has been going on for a long time (which might be a stabilisation, but a correction or crash might also be due). With both the shortages and pandemic entering the tail end (knock on wood) of things I would simply invest it directly. While you're at it, also consider investing in some regular stocks or whatever if you haven't already. Crypto is risky.

My reasoning: $10k may get you 5 3090s maybe, which could make 5 x $8 = $40 per day mining ETH. That will take $10,000 / $40 = 250 days (roughly 8 months) to recoup if the price of ETH remains the same and not accounting for electricity. Now ETH's difficulty bomb has been postponed once again to June 2022 now, but say that it goes through, in 6-7 months time Ethereum mining would be dead and you wouldn't even have your initial investment back. As for Bitcoin, can you even get the miners again? Last I checked orders were still backed up.

On 12/11/2021 at 6:56 AM, Pacolebon said:

Starting with the basics, would you invest all in a single Coin (like ethereum) or would you split in two or more?

As with any investment, "diversify" a bit, but don't spread your butter too thinly. Crypto still moves mostly as a whole on the grand scales, but different coins have different purposes and aims, so it's definitely worth it to put your eggs in multiple baskets.