The most common question that I see asked in my discord and other communities is…
“Which crypto miner gives me the most bang for my buck…”
As simple as this question seems, to a TRUE crypto miner, there’s more than meets the eye.
You see, crypto miners on the secondary market (where they’re sold after the manufacturers), can be considered a fairly efficient market.
Market efficiency refers to how well current prices reflect all available and relevant information pertaining to the asset.
Let’s look at the stock market (for example). As soon as a CEO is hired or fired, the market immediately reflects a new price based on this information. Due to the speed in which the market reflects this new price Is exactly why the stock market is an efficient market.
On the other hand, real estate is NOT an efficient market. As an example, when interest rates go up or down, the market might take 6 months or more to reflect a change in price based on the change in interest rates. Yeah Ty think we can do
Now, back to our main topic: crypto mining.
So, If you’re not new to crypto mining, then you know that miners are always bought and sold (traded) on the secondary market. Places like eBay, SpotMiner, and a few others are resellers of these miners.
The prices of these miners change daily. Meaning, the market for crypto miners could be considered an efficient market.
Now, these daily price movements are based on a few considerations. Starting with the most obvious, which is, the“coin risk”. The riskier the coin that’s being mined, the cheaper the miner trades for.
Bitcoin, for example, being the least riskiest coin to mine, due to its large market cap, takes the longest to break even. In other words, Bitcoin miners yield the lowest return.
Now, let’s take a look at Doge/Litecoin miners. Doge and Litecoin aren't as “blue chip” as Bitcoin. Therefore, the time that it takes to break even on the price of a Doge/LTC is less than a BTC miner, yielding a higher return than BTC miners.
Now, Ethereum miners, on the other hand, are the quickest miners to break even on (highest yield). And this isn’t because Ethereum itself can be considered risky, as it ranks #2 in coin market cap. However, its risk lies in ETH’s developers switching over from proof of work to proof of stake, which will eliminate ETH mining altogether.
Clearly, crypto mining men, like myself, will demand a shorter break even point (higher ROI) and thus a lower price on ETH miners to make up for this POW to POS risk.
Now, another (obvious) influence on crypto miner prices is the price of the crypto itself. When Bitcoin is at an all time high, BTC miners will be trading for a premium. And why is that? Well, as a cryptocurrency is worth more, the time to break even becomes shorter. Therefore, the crypto mining market responds by raising prices on the miners to bring them back to a more traditional yield.
And all of this price movement is based on supply and demand. When we’re in a bear market, miners are in an abundance, which as a result, causes prices of miners to drop.
The opposite occurs in a bull market. With crypto on a hot streak, everyone is scrambling to get their hands on a miner, causing a tight supply of the miners and pushing the price up.
Now, here’s the thing, we’re currently in a bear market. Which means one thing: LOW PRICES on miners.
And right NOW, there’s no better time to invest in a crypto miner.
So, if you’re someone who tends to procrastinate or gets “cold feet.”
Or, if you’re someone who constantly misses “the right time to buy,” then make your move and make your investment today….
For the most TRUSTED source for crypto miners, GO TO ===> https://spotminer.com/collections/products/asic-gpu-mining
-Josh “The Mining Man” Meadows