The Decision To Mine Or Purchase Bitcoin

For mining insight, others such as @Diverter and @Econoalchemist have published detailed reports on their experiences and lessons, helping others through the experience and avoiding pitfalls in the mining space. I would like to add to this compendium and address economic aspects, specifically, the question of mining versus outright purchases of bitcoin.

There are many benefits to mining bitcoin, such as acquiring non-KYC bitcoin, enhanced privacy and contributing to the bitcoin ecosystem. Outside of these benefits lies a more objective benefit: The quantity of bitcoin one can obtain with fiat. By solving how much bitcoin one can acquire, it clears some of the uncertainty of the decision to be made and reveals an interesting side benefit: By focusing on the quantity of bitcoin, one can disregard exchange rates back to fiat.

Thinking in bitcoin terms makes fiat noise fall away and you can focus on the hard-money signal bitcoin provides, identifying the path that provides more bitcoin. I am not suggesting other benefits are to be disregarded, but determining which aspect delivers more bitcoin improves your overall analysis and decision-making. When one considers economic outcomes in bitcoin terms — the purest form of currency on the planet — one divests baggage associated with traditional finance and agenda-pushing rent-seekers. By first understanding how much bitcoin each alternative will provide you, you can decide for yourself if the subjective benefits are worth the difference in the amount of bitcoin.

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