It appears that across many of the top cryptos there is an increase in miners. GPU prices have dropped a little bit and people are jumping all over them. Maybe late to the party, wanted to buy a few months ago but prices were just too high. I wonder if any have done a profiablity calculation? And some small miners are buying up cards fast because they are 100 bucks cheaper. The roi on those cards is years. Why not buy the coin? If things go bust to they really think their gpus will be able to be sold for more than half at best? Just trying to wrap my head around the logic.
It just depends, for me when I bought my mining rig the price of zcash was much higher so it made more sense but it also made more sense in acquiring a big giant chunk of electrically powered metal versus intangible things. Plus once you’re satisfied, you’ve got a mining rig to sell. I think it’s kind of a distraction and easier to find solace in the whir of the fans and the warm air blowing in your face versus sitting there in your head looking at Market candles. But with these low prices the decision certainly becomes more difficult I’d say, just my opinion.
Also, without mining there would be no zcash, they’re the ones who drive the network, so maybe choosing mining could be a way of taking more personal responsibility for the Zcash environment in general, the assumption that somebody will always be mining it may be fair but not a given
It isn’t always about ROI…
I get that it’s not necessarily about return on investment. But that is why most people get into mining. It just seems like there is this 3rd wave of people jumping into mining without looking at all the costs.
Mining makes sense when the difficulty level and GPU prices are low and the price of the coin is increasing. It doesn’t make sense now for ZCash since the difficulty level is stupid high, the price is stupid low and GPU prices are stupid high, too. On top of that, electricity is a consideration hobby miners overlook…it’s not cheap.
Buy ZEC directly now. Buy as much as you can!
It made sense last year, even if the price was lower because the difficulty was way lower. Plus next gen cards were probably a year away. It next gen cards are months away, difficulty is near all time highs and gpu are down 10 to 20% above the highs, but still up 30% or more from msrp. You would think people would stop buying for mining and just put that money into the coin. But they are looking at gpu as an asset that will hold its value based on the last 3 months. That probably won’t happen with the new cards coming and the market flooded.
A related question: is there a way to anonymously acquire coins except through mining? Could that be the reason for a bias to mining over purchasing?