Mining or Outright Buying

Hi all,

To preface, I’m all for mining and supporting the network (I intend to, but maybe just not on a large scale), but, between mining and buying Grin, which one is more financially sound/reasonable (and if there’s no exact answer, then what is your opinon)?

I.e. I’m considering building my own rig maybe with someone else, but what would be the possible spread if I waited for Grin to hit the market and scooped them up at a (assumingly) low price? Is the amount you can mine in beginning stages outrageously more than buying Grin directly, or are the returns closer than that?

I’m sure this question has been asked multiple times in the past, but I wanted to hear from you all about your experiences regarding the matter, and just overall suggestions.

Thanks everyone!

edit: revised comment

It simply depends on whether your cost and efficiency will enable you to mine at a profit, which is generally hard to predict, and almost impossible before genesis block.

If however:

  • You plan on trying to time the market instead of buying grins at a constant rate.
  • You care about donating your honest graphs rate (/hashrate) in order to secure the network.

Then it’s not just about mining at a profit or a loss.

Financially, I think it depends on the timeframe you’re looking at.

  • For the first 30 days or so, mining makes more sense due to limited initial supply.
  • After the first 30 days or so, unless you have excellent mining efficiencies, buying makes more sense.

Note: I could be wrong.

Also, this presumes that there are exchanges or alternative direct methods to exchange grins with [fiat|btc|eth|xxx] by mid-February.