My math says mining might be better than DCA over the next 8 years
https://ift.tt/3J8n0b3
When people ask about mining, I usually see the advice that “just buying BTC is better unless you have a big operation..”
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I decided to math it up a bit. Now, the big unknowns are BTC price and changes in hashrate/difficulty. I also may have missed something else. Open to criticism here. But, my napkin spreadsheet math tells me mining is significantly better. I chose to use an 8-year time period to compare. My math had mining earning about half a bitcoin while DCA was closer to a third of a coin.
[https://ift.tt/3H6mCYF
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Here are some assumptions I used:
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1. Hashrate goes up 65% per year. This is roughly what happened between 2018 and now.
2. I used my local power rates which are low (~8 cents per kw/h) and assumed a 1.5% inflation
3. I was able to buy one top miner for $15k (This is not real. It’s assuming I can)
4. For DCA comparison I used the initial miner cost and then the annual power cost
5. For BTC price, I used an annual average that went up 40% per year (pretty conservative). If the price goes up faster, it favors mining more.
6. Halving occurs 2024 and 2028
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I used this site to calc current rewards: [https://ift.tt/3qipXNq
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Someone check my math. Dealing with a miner might be a pain, and the one major risk might be if your miner quits working. But, otherwise, mining seems like a great move. Am I missing something?
Cryptocurrency
