How to Mine Your Own Business in a Bear Crypto/Bitcoin Market
By Tim Mandell and Crystal J. Milburn
Whenever evaluating this question, start with your cash flow and risk tolerance.
Things to keep in mind:
Cash is king (if you carry little debt/obligations, you can mine in a bear market)
The core values/fundamentals of the digital currency market haven’t changed
Cyclical is normal
It’s possible to build during bear markets (profits realized as things head back up)
Fortunes are made in bear markets!
If you look at the stock market over time, growth is made in down markets. See the hypothetical example from the stock market below. The investor who pulled out during the best 44 months (3.6 years) out of 1,044 months (87 years) made less than $20 vs. the investor who always stayed in the game (even when (especially when) times got tough) and made $4,677.
PRO TIP: Something else to consider is that the digital currency/crypto space is like the lottery in that you have a better chance of making money when other miners exit.
Things you can do:
Buy miners*, get more hashing power, avoid future price increases, then sell when the price goes back up
Shut your miners off (seek a Bitcoin miner host with metered billing)
Keep your miners hashing
Talk to your trusted provider/hosting facility contact
Do not hash with startups, choose to work with veterans who get it!
Now more than ever is a time to stick with those who are experienced in the Bitcoin mining space. Click through to our blog on vetting out the good from the horrible (the horror stories are definitely real!).
We’ve been around for a long time but my disclaimer is that I’m neither a financial advisor nor a wealth coach, otherwise I probably wouldn’t be writing this blog right now! And, while the ones who've made the most money (in my experience) have stayed in during a bear market, I don't advocate for mining at a loss.
That being said, the market to get in now definitely makes your dollar go further and you can amass much more hashing power which makes more coin. Again, please don’t overextend yourself but do apply your own tolerance for risk and financial strength to your situation. And, know that we’ll work with you so long as it makes sense. Talk to us so we can help keep you running until the next bull market.
*Miner prices fluctuate daily with the price of the coin; ASIC and other miners are down to about ¼ - ⅓ their usual price right now. Only consider buying if you have the available cash.