What are the advantages of mining?

What are the advantages of mining?

For Bitcoin, virtual currency, and other such things, everyone has heard of it more or less and even goes to the relevant information to understand them. But when it comes to 'mining,' most people stop and don't know where to start.
So are ordinary people suitable for mining? Yes, mining is a profitable project worthy of long-term investment.

Compared to buying bitcoin directly, mining has many advantages:

First of all, in terms of cost, mining is a cheaper and more stable way to obtain bitcoins. There are two ways to obtain bitcoins, buying from the secondary market and mining. Bitcoin purchased through the secondary market, often referred to as speculation, carries a premium on market sentiment. This premium may be a positive premium or a negative premium.
With data such as miner costs, electricity costs, other fixed operating expenses, and the hash rate of the entire network, the cost of mining bitcoins can be roughly calculated. In the industry's early days, many miners with faith gained a vast amount of wealth accumulation.
Secondly, mining is a reasonable risk hedging method. The blockchain industry is full of ups and downs. When the currency price fluctuates by nearly 30%, any short-term operation, especially leveraged trading, has huge risks. Therefore, mining that continuously produces coins has become a risk hedging method to reduce the average cost of obtaining coins.
The profit model of mining is transparent, and much traditional capital favors mining. Although Bitcoin's violent fluctuations can bring a lot of profit from speculative transactions for investors in traditional industries, its risks are also unbearable for ordinary people. At the same time, many traditional capitals do not understand the value of Bitcoin, so they are reluctant to rush into speculation.
The payback period of mining is basically about one year, and the payback period and profit rate can be estimated quantitatively.

Hoard coins:
Mining allows you to accumulate capital continuously

Mining can also become a financial behavior. For example, using mining to obtain bitcoins and collect mining coins may have more cost advantages than directly buying coins in the market and have the opportunity to obtain higher returns.
Or half of the mined coins are hoarded and half sold to maintain operations, not only for mining profits but also for long-term benefits.

Market maturity and stability:
Most mature enterprises provide one-stop service

For most miners who invest in mining, they do not need to know much about the currency you mine, nor do they need to understand obscure terms such as "algorithm, "hard fork," "DAG," "TPS," all you need to do is Buy miners, mine, withdraw coins to exchanges, sell and cash out.
Mature companies will help you provide solutions for purchasing miners' data and venue arrangements.

At this time, you only need to have a specific basic hardware knowledge and understand the market conditions (make sure you are not trapped when you buy miners), and focus on the following points:
1) Hash rate (output per unit time)
2) Power consumption (comparison of electricity consumption)
3) Currency price and selling strategy (real-time and expected currency price)
4) Site and electricity price (especially after scale-up)

After buying the miners and starting mining, the electricity bill is the most important thing that remains invested.
Electricity fee = total power consumption of miners * electricity price.
This is a continuous expenditure. Generally speaking, as long as the daily income can still cover the electricity bill, it is a continuous pure income.