Mining for cryptocurrency is pretty nice, once you get the rigs going you don’t really have to do too much, but I see it as a high-risk business and I’ll explain why.
The days of paying the cards themselves are over, you can’t make ROI in less than a year now.
If you end up making over 60% profitability in the first year, that can be amazing and it’s a rare ocasion no matter how you look at it.
A 2 year period in a tech environment it’s like a 10 year period for an offline business, it’s a long time because tech is growing exponentially and you are a constant threat that new video cards are going to come up or an ASIC board will be released and will make your mining rig obsolete.
Considering those threats I decided to invest up to 25% of my net worth in cryptocurrency mining, it’s a high risk and high reward type of investment and it can pay out or not. Investing in tech still is better than investing directly into a coin or multiple portfolios of coins. Bitcoin still runs the show because it owns over 50% of the market share, and every other altcoin is indirectly affected by this.
While any other coin could go down to zero, by investing in mining rigs, they can be considered as a depreciating asset which in time will be worth less and less.
People tend to forget that when you are doing an investment you should always minimize your losses. Never go all in and think about the worst things that could happen and prepare in time for that.
I haven’t reached yet 25% of my net worth allocation, that’s just as far as I am willing to go right now.
Here’s another image of my second rig which is stable and running 24/7 without interventions.
Works like a charm currently, but it can change in the long run so I must be carefull.