Bitcoin, To Buy or to Mine? That is the question.

The “Halving” arrived, and Bitcoin seemed to be entering an early “Summer.” Then Bitcoin dipped and went back up, but wait… down and up. So critics and fans wait with bated breath to see who is right. Will it go up or down…sideways? So, if Bitcoin was going up, why did it dip? Do I buy Bitcoin now? Should I wait? Should I consult the Oracle first? Is it better to mine Bitcoin? 

It’s important to note that price dips are a natural part of Bitcoin’s journey, and its value will continue to fluctuate for years to come. Despite the Federal Reserve’s decision to maintain high interest rates, concerns about inflation, and a slowdown in ETF inflows, the potential for Bitcoin’s value to further appreciate remains. However, Bitcoin volatility is a moot point when Bitcoin’s price consistently rises at a rate that outperforms even the most promising commodities. The future holds even greater potential for Bitcoin’s value to appreciate, making it a promising investment option.

Programmatically the Bitcoin Halving Event precedes the “Bull Run,” or “Crypto Summer”, by several months. It is impossible to precisely forecast the “when” and “to what extent” of the upcoming wave, but we know it is coming. Why? The simple answer is supply and demand. The Halving cut the new supply of minted Bitcoin in half while the demand for or adaptation of Bitcoin into our society and the global economy grows almost exponentially. You get a big price increase if you include human nature, emotional excitement, sensationalized media, and FOMO. After the wave, the price will settle somewhere at a comfortable equilibrium, which I estimate to be about twice what this Summer’s low ends up being. 

So when was the best time to buy Bitcoin? The best time to buy Bitcoin is in the past, but the second best time is today. Even if you encounter a dip after your initial Bitcoin purchase, remain patient. Those who bought Bitcoin near the peak of the last Bull market are now reaping the benefits. Admittedly, it took 2.5 years, but considering that’s the worst-case scenario, it’s a promising outcome. If you’re reading this around the time of publication, you’re unlikely to experience a 2.5-year wait for a return, but rather, historically speaking, you might even see a 3X increase by next year. However, this is solely my opinion based on personal observations regarding the historical patterns of Bitcoin price fluctuations, and it is not financial advice. My lawyer insists I disclaim any prognostications, musings, or opinions…Killjoy. 

To decide if you want to mine Bitcoin instead of just buy it requires some questions to be answered:

1. Are you patient? (mining will have higher rewards but over more time)
2. Do you have at least six digits to invest? (the entry point to mine is higher than buying)
3. Could you use a tax right off? (mining investment is a tax right off, whereas buying Bitcoin is not)
4. Do you like to have hard assets? (investing in mining is an asset-backed investment)
5. Would you like to exchange risk for reward? (several risk-mitigated methods are within mining)
6. Can you wait several years before exiting a direct investment? (mining is not a liquid investment)

If you answered “Yes” to all of the above, you should definitely invest in mining instead of just buying Bitcoin. The only decision left is whether to invest in a large, sophisticated mining operation or buy the equipment and do it yourself. Your budget and exposure to the right opportunities partially affect this decision. GIODELL can provide the high-performance, risk-mitigated, strategic investment opportunity you need. So, in the meantime, follow our posts and feel free to reach out and set up a 1-on-1 conversation to learn more about why we mitigate risk while delivering higher rewards.