- On August 20, 2018
We often are asked a variety of questions on a daily basis:
- When is the right time to buy a Mining Rig?
- When should I buy Cryptocurrency?
- “I bought $500 worth of Bitcoin and was told I would make $500 a day…”
- I bought Bitcoin from XYZ Website, and they want four times my money …..
- The list goes on….
Whilst this post may be detrimental to potentially your purchase of a Mining Rig from us, it will at least keep you informed and at least be educated into your purchase whether it be from us or from others, from cloud mining to cryptocurrency in general.
Most of these can be answered via our Frequently Asked Questions link.
Whilst we often don’t talk about ROI and have a disclaimer which goes into detail about Mining Rigs and Cryptocurrency in general. You need to understand that it is NOT a short term return. The value of Cryptocurrency in general varies on a day to day basis. It varies to the point that one minute it can drop 15% and others jump 100%. Last year around Christmas time Ethereum was over $2000. Today is sits at around $413. Whilst the value drops due to many different reasons, you need to look at the long term vision of what you are expecting a return on. You are investing in a technology that will be used in everyday life, a technology that allows you to exchange digital contracts (think purchase of houses, assets, cars, electricity contracts, medical records) through a variety of platforms that will make things that are mundane and prone to user error completely automatic, access controlled and with data verified and integrity intact. “Instant Validated Data”.
Yes the technology sounds fantastic, and will be great for our future, but why then is the market up and down..
Well a few reasons:
Too much speculation. You have organisations that claim that they are building fantastic products using this great Blockchain technology and are either not… or are in fact nothing but figures of their imagination, hardly working or not working at all – https://news.bitcoin.com/over-60-of-top-100-cryptocurrencies-have-no-working-product-study-claims/
Because of this people buy or SELL in droves which causes at times an artificial increase or decrease in price rapidly. Read the news and you will see that X company says they will be doing this, and the price goes up, then later they don’t and the price goes down…
I often tell clients we are back to the good old “electricity” days. When electricity has just been formed, and whilst it is invisible and does great things, it is nothing… until we start seeing the development of things like the “lightbulb” or “electric motor” and only then the every day mum’s and dad’s will see the value of what the technology is, driving the value up further, and possibly hundreds of times more than our initial investment.
When is the right time to buy a Mining Rig?
A Mining Rig is a serious purchase. Our rigs start at around $5000 and go all the way up to over $20,000. Our rigs are designed using hand selected computer equipment optimised for Mining a variety of coins. The best time to purchase a Mining Rig is usually when the market is down. The reason for this is that clients tend to want to purchase when the market is going well, and don’t want to purchase when the market is down. Unfortunately it puts us into a situation of supply and demand. Suppliers charge a premium for equipment when there is high demand, and then offer massive discounts when the demand is not there. So the entry point for purchasing a Mining Rig is usually better when the market is low, not when all the product is sold out and you are paying premium dollar for the components.
When should I buy Cryptocurrency, and how do i know i am doing the right thing?
As always when the market is low. If the market is high, you are asking for trouble. I feel sorry for the people who purchased bitcoin when it was over $20,000. Whilst eventually it will most likely go over that, at the moment it sits at $8900. You should ALSO always purchase from a reputable company such as Coinspot or Coinbase. I have heard too many stories from people who are poached from Facebook or read up about get rich quick schemes that promise to turn a $500 investment into $500 a week overnight. YOU WILL NOT ever make that, and i can assure you that you will end up kissing that $500 goodbye.
Do not throw money into websites that have no reputation, especially if you are an Australian customer. You are better of purchasing some cryptocurrency and holding onto it (HODL) then throwing it at someone who guarantees you a return 4 times your investment in a short period of time. Again… it WILL NOT HAPPEN…
We personally have also focused on only ETHEREUM and BITCOIN and have sold off if not all of our ALTCOINS that we were holding onto. We believe that these “founding” technologies will be the basis of most if not all blockchain developments (think electricity again).
My suggestion, is always to do what YOU think is right. As much as we can enable you by building you a Mining Rig, or point you in the right direction of where to purchase Cryptocurrency. You need to do what your gut tells you. We believe in the technology, what it is capable of doing so are in it for the long term. However if you think that you are going to get rich overnight it will NOT happen and you will most likely be in a situation that you regret it quickly. Unfortunately for that situation you missed that boat by a few years at least…