Why are miners scared of POS?

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Comments

  • Jotun70Jotun70 Member Posts: 107 ✭✭
    At under $13... I'd hardly call it a gamble to dump some money into buying ETH right now. You will make money, whether it be in a week or 2, a month, or sometime next year.
  • coolrascoolras Member Posts: 22
    @rawmeen oh it has been very educational so far. I have no idea that you can have 6 gpus on a motherboard, never heard of risers and I've never modded or overclocked a gpu before. It's been very fun and exciting. So now the question is whether to commit more money and time into this venture. Gosh, only if I have a crystal ball.
  • chuckfeastchuckfeast Member Posts: 19
    If I might be so bold, a gambler would not start mining ETH now. That is because all of the facts point very strongly to the very very low likelihood of returning your investment.

    It is possible the price of ETH will rise. It is very unlikely to rise enough, and if it does we will just see more miners.

    The cat is out of the bag on ETH, which means if the price rises more will mine.

    There is always someone willing to mine for a lower margin than you, there will always be someone mining with lower power costs, and there will always be someone willing to mine without needing to ROI - for example, someone who has already paid for their rig(s).

    On top of that, there are a lot of people who will happily buy rigs using profitability calculators, never considering any of the effects that I'm describing, and assuming that the profits will remain constant over time... thereby adding to the very problems they have failed to appreciate.

    No, it's not a gamble.

    If you buy in now, you will not make money. You will not ROI. You will spend money, and not see it again.

    By all means, get in for the fun, the learning, the excitement, the hobby, the principle or the sheer damn hell of it.

    But don't pretend that you're gambling. You're a poor gambler if you do, because the risks are high, and the payouts aren't.
  • rawmeenrawmeen Member Posts: 79
    @coolras if you're doing to make money, you are better off just buying Ether (don't doubt this for a second). If you're doing it to learn and have fun but lose a bit of money, then invest in more rigs. You really don't need a crystal ball. Chuckfeast is 100% right ... if you think of this as gambling, you are not a very good one.
  • SWDude26SWDude26 Member Posts: 132 ✭✭
    At a small scope, if you're only interested in mining ethereum and only ethereum. Don't mine if you can't afford to lose that money or not see it again in the immediately future. ROI based on current price and when POS will hit isn't going to happen.

    If you don't mind moving to another crypto, then you can move on to mining something else to hit your ROI.

    If you don't want to mine another crypto after POS, then buy and hold ether.

    It's not a gamble unless you make it one. Diversify.
  • coolrascoolras Member Posts: 22
    Ok so lets say I give up mining idea and just buy ETH and hold. Seems to be a better and safer route. How do I do that? Do I first get a wallet and then buy it... where? What wallet would you suggests? And where is the best place to buy it?
  • Tbone5660Tbone5660 Member Posts: 75
    edited October 2016
    Setup an account on Poloniex, Kraken, or Bittrex and then use the exchange provided wallet for your purchases. You can move ETH to other wallets from there if you wish. You can also buy it directly from Coinbase.
  • DividesByZeroDividesByZero Member Posts: 58
    Create accounts on exchanges. There you can generate walllet addresses and deposit fiat to exchange. I would then also sync geth and create you own wallet and transfer funds off the exchanges to your own wallet. Unless you trust someone with your money then keep it on the exchange.

    I use kraken and poloniex.
  • coolrascoolras Member Posts: 22
    Thanks a bunch guys!
  • SWDude26SWDude26 Member Posts: 132 ✭✭
    edited October 2016
    Never, ever, keep your money on an exchange. They are not banks.

    If you're trading and what not. That's fine. But for holding, always hold in your personal wallet whether it's straight up vanilla wallet or any mix of the GUI services out there where you can make several backups of the private key and/or password
  • glenn_txglenn_tx Member Posts: 67
    edited October 2016
    In the US, Coinbase seems to be the cheapest, but they have crazy long 5-7 day settlement delays for ACH/Debit Cards. You can instantly buy Bitcoin on Circle very easily via Debit Card, then transfer it to an exchange to trade for ETH. Circle has a $300 weekly limit that is nearly impossible to get them to raise. They say no fee, but there is a hidden 1-1.5% premium in their prices. I do a combination of Circle and Coinbase.

    ... and then immediately transfer it to a local wallet (and backup your keys on an encrypted USB drive)
  • Jotun70Jotun70 Member Posts: 107 ✭✭
    glenn_tx said:

    In the US, Coinbase seems to be the cheapest, but they have crazy long 5-7 day settlement delays for ACH/Debit Cards. You can instantly buy Bitcoin on Circle very easily via Debit Card, then transfer it to an exchange to trade for ETH. Circle has a $300 weekly limit that is nearly impossible to get them to raise. They say no fee, but there is a hidden 1-1.5% premium in their prices. I do a combination of Circle and Coinbase.

    ... and then immediately transfer it to a local wallet (and backup your keys on an encrypted USB drive)

    Impossible to raise? Haha, the day I signed up with Circle I asked for more and they made it $3k :smile:
  • DividesByZeroDividesByZero Member Posts: 58
    @Jotun70 Coinbase rejected the photo of my drivers license to increase limit... Who did you blow?
  • Jotun70Jotun70 Member Posts: 107 ✭✭
    edited October 2016

    @Jotun70 Coinbase rejected the photo of my drivers license to increase limit... Who did you blow?

    With coinbase, do it with your phone. I emailed them and they said something about it being way easier on the mobile app.
    Post edited by Jotun70 on
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