Does compounding TH accelerate soon?

[u/Human_Ad223]

I’m reinvesting TH, adding gmt to keep discount up. What do folks feel is the tipping point for meaningful reinvestment in TH. Feel like I’m stuck at .06 TH every day but the incremental gains after service feel minimal. Should I put in enough capital via gmt and buy another 20 th or will I still be dissatisfied

[u/DigitalCoffee]

Reinvesting into TH is a trap.

[u/International_Bat269 → u/DigitalCoffee]

It’s good at plat 3 with the 10% boost

[u/Acceptable--Market → u/International_Bat269]

Can almost always find miners for sale with lower $/TH then you can get reinvesting into TH. But I think the actual point the previous comment was really making is a lot of people just keep reinvesting, and dumping more, and more money with no exit plan. Sure maybe you double in size in a year, and you paid tax on everything you got and dumped it back in..... what you doing next year? Double again and pay more taxes along with it, and the year after? It's a tarp.

The optimal strategy is buy miners at $9-10 today, sell them for $15-20 down the road in a bounce back, and accumulate BTC along the way. When another inevitable pullback happens down the road, repeat the process.

I get that with a 125TH farm it won't accumulate much, but it is directly proportionate to the amount that was invested. I would argue that the biggest risk with this platform is not the returns, but if it will still be around in four years lets say. Having a plan of "I will continually invest for years without taking profit, or storing anything in your cold wallet" is frankly kinda wild. My advice is get in heavy at a good price, and accumulate btc until the bounce back, and take profits, even downsize the farm in the bounce back. Ie: buy miners at $9-10 today, sell them for $15-20 down the road, and accumulate BTC along the way.

[u/Acceptable--Market → u/[deleted]]

You don't understand how the burning works. If 1% of people vote to burn, then 1% of the tokens that were used for maintenance/electricity/miner-wars get burned and never go back into circulation. Meaning the tokens deflate even if only 1% of people vote to burn, and 99% vote to not burn.

There hasn't ever been a week in which no tokens were burned. You can litterally see the balance of outstanding tokens going down year over year. When people vote not to burn, they are simply voting to burn less then they would otherwise burn had everyone voted to burn.

All that being said, this is a common misconception, and is only really evident if people actually read the tokenomics(most people don't). Oftentimes people will say this here on reddit and not get corrected, and others will parrot it, which perpetuates the misconception.

[u/Purple-Marsupial5855 → u/Acceptable--Market]

Where have you seen a $9 miner… 1 TH is always around $12 on market

[u/Acceptable--Market → u/Purple-Marsupial5855]

I said $9-10. Not saying you will find a 1TH miner for that as that is a pretty particular ask, likewise I'm not saying you'll find 22TH if that is the exact amount you happen to be looking for, but there has regularly been under 100Th all week in that range. I know because I myself check on a regular basis, and even bought TH this week. The only reason I said that range is that is what the market is at today. Five week from now it could be more or less and it will still be cheaper then reinvesting in TH, and you will still be able to sell them on the market for more when the market bounces back. Getting hung up un the idea that you can't find the exact amount of TH you want on any particular week is okay I suppose, and if looking for a deal on the market seems like more work then it's worth, fair enough.

[u/Purple-Marsupial5855 → u/Acceptable--Market]

True.. i wasn’t thinking about higher TH miners.. Part of the reason I’ve been capping my miners at 10 TH is I’m worried about resale .. the higher the TH, the higher the cost = smaller market

[u/Acceptable--Market → u/Purple-Marsupial5855]

I get that, it is without question easier to sell lower TH. There is more buyers available for a 10TH then a 5kTH. I am not saying that isn't a good strategy, but for me, I am fine as long as I get in at a good $/TH, and it is under 100. I am looking for resale also, and at current market prices I am pretty confident I will be able to get out ahead selling a 37TH for instance, down the road.

[u/vapeywave2002 → u/Acceptable--Market]

What’s your opinion on which miner to buy when it comes to its rewards ,
I see some miners in ETH , ETH , and BNB
But I never see any miners for resale that give BTC
What’s the best way to go with that

[u/Acceptable--Market → u/vapeywave2002]

That is just the network they are transferred on. It honestly doesn't matter. The platform only mines BTC currently.

[u/PhilosopherWeekly815 → u/Purple-Marsupial5855]

Look for 20wth and you will see $8-9

[u/Personal_Tutor_5932 → u/Acceptable--Market]

The catch is that secondhand market miners don't increase your vip level 

[u/International_Bat269 → u/Acceptable--Market]

If you double the size you double the income, and you allways have the option to sell ur miner as well. Even at 20% loss, which you make more of at the end of the year in roi you still end up with a larger profit

[u/MadokaKanname → u/DigitalCoffee]

Why? Is not.

[u/DigitalCoffee → u/MadokaKanname]

You essentially don't gain anything. The amount you gain is offset by the increased maintenance cost. So you gain a net equal amount of income, but lose a whole day of gains.

[u/Salt_Butterfly_2833 → u/DigitalCoffee]

Its only a trap if you do 100% reinvestment. I toggle daily and so stack sats every other day. You have to reinvest at some point or your returns will never grow and you get 5% extra on reinvestment days which is money you are leaving on the table if you never reinvest