This is a question I’m often asked and because I’m involved in the mining of bitcoin, I’m biased towards it.
Let me explain why:
When you buy bitcoin – with the intention of holding bitcoin – you remain with the quantity of bitcoin you buy (unless of course you keep buying more bitcoin).
In simple terms, if you buy one bitcoin today, you’ll always have one bitcoin. In a year’s time, you’ll have one bitcoin and in 5 year’s time, you’ll have one bitcoin.
Yes, the price may rise, but you’ll still only have one bitcoin.
When you MINE bitcoin, you don’t buy bitcoin but rather equipment to mine bitcoin.
So taking what I’m involved in as an example:
you buy a share in a mining pool and the equipment you have purchased mines bitcoin for you over a period of 1 000 days.
After 30 days, the mining share that you’ve bought starts to grow on a daily basis, creating partial shares.
So that after a few months, your 1 share may have grown to 1.2 shares, and after a few more months, 1.4 shares, and after a year, 1.8 shares and after two years, 2.4 shares and so on….
until after 1 000 days, you 1 share might have grown to 3 or 3.5 shares.
So not only do you benefit through the (possible and likely) increase in the bitcoin price, you also benefit through having more bitcoin. And after the 1 000 days of your mining contract have elapsed,
your one share expires and your second and third shares start to mine for a further 1 000 days: so essentially, you pay once and your shares keep mining bitcoin for you.
Frankly, I can think of no better investment.
But let’s go back to the buying of bitcoin; here you go online to eg www.luno.com www.altcointrader.co.za or www.localbitcoins.com, open an account (which creates you a bitcoin wallet) and buy bitcoin.
(You don’t have to buy one whole bitcoin but can buy, for example, 0.2 of a bitcoin). As opposed to the mining of bitcoin, here the amount of bitcoin you hold will not increase.
Further, you expose yourself to the market price of bitcoin. If the price goes up, you win. If the price goes down, you stand to lose.
This said, there is NOTHING wrong in buying bitcoin online and holding onto it. It could be a really, really good investment. It’s just more risky, and there will no soft landing if the price corrects sharply.
In bitcoin mining, on the other hand, if the price of bitcoin (BTC) one day plummets, you’ll experience a softer landing due to the fact that you would have created more bitcoin for yourself over time.
So any losses could be offset by the increased bitcoin you hold. If the bitcoin price increases over the next few years (as is predicted), you’ll win big time.
What’s more, you need have NO understanding of the bitcoin mining process. It’s complex, and BitClub Network does the mining for its members.
Before you can MINE bitcoin, however, you need to BUY bitcoin.
The platform that I’m an active member of (BitClub Network) has a physical bitcoin mine in Rekjavik, Iceland and mines bitcoin – and other leading crypto-currencies like Ethereum, Ethereum Classic, Monero and ZCash – on behalf of its members around the world. (Whilst most of the membership is in South Korea, Japan and Malaysia, we’re very active in Africa – particularly in South Africa, Kenya, Nigeria, Ghana and Botswana – and have offices in Johannesburg).
BitClub has 3 pools mining bitcoin (Pool 1, Pool 2 and Pool 3) and 2 pools mining GPU shares (Ethereum, Ethereum Classic, Monero and ZCash).
To buy into any of these mining pools, you need bitcoin – hence the statement: Before you can MINE bitcoin, you need to BUY bitcoin.
Confused? Worry not, as this is not a simple concept to grasp and I’d be happy to explain further if need be. Just pop me an email or give me a call. My contact details are below.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also one of the first people to have joined Bitclub Network in South Africa (two and a half years ago). See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: firstname.lastname@example.org and email@example.com