The Best Time For Mining Hive .:. Wait... Mining HIVE?

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I have to admit that the title is a bit provocative, but I wouldn't say that it's a clickbait title... In the end, we do "mine" HIVE by creating and curating content here on the chain... For all of you that know me, I don't have to explain my background... You guys already know that I do many things in the crypto world, from GPU mining to trading, content creation, blockchain gaming, etc... As I like to poke around PC hardware, one of my favorite things is building GPU rigs for mining ETH or other POW minable coins... On the other side, that can be easily compared with our "HIVE mining", too... And not just that, when you understand the mechanics, you know how can you profit the most and what do you have to do in "uncertain times"...

So, in this video, I was talking about important things that you have to pay attention to when you are mining POW coins... Firstly, you have to have a plan... Do you plan to mine coins for "daily" rewards and exchanging them to fiat money and spend, or you are doing it for the long-term as you believe that crypto is the future? If you plan to do it for the short term, you have websites like whattomine where you can check how profitable is your equipment...

If you plan to do this for the long term, then we can talk more about the possible strategies... But, in the end, it's always come to work, keeping your head down, and trying to silence all the noise outside... Why is that? Well, there are two important variables in mining coins... Profitability and difficulty... When I talk about profitability, I'm thinking about the CURRENT numbers in FIAT...

Let us imagine one scenario... We are mining Ethereum, and the price of the token is stable... So, if there are more and more miners, the difficulty of mining is getting bigger which directly means that the number of tokens that you mine is smaller and smaller... That implicates that your earnings (profitability) are lower and lower... OK, that's clear... But what happens if the price goes down or up? Let's check that out...

Now, imagine that the price of the ETH is going up... The immediate effect kicks in and it's our old friend FOMO... More and more people jump to mine coins, and the same things happen as in the previous example, BUT because of the price rise, people aren't aware of mining fewer coins as they are still mining with similar profitability, but in FIAT! For the long term, this is actually the worst-case scenario as you mine fewer and fewer tokens that you plan to HODL for a long term...

But what happens if the price goes down? In that case, we have the opposite situation... People start to FUD, some are turning off their machines, some are selling their mining rigs... That means that FEWER people are mining and difficulty goes down... This means that you mine MORE coins, but your earnings in FIAT are or the same, or going down... As you are here for the long-term, you get more coins for accumulation and this is the best scenario for you! It sounds so wrong at the first sight, but it is like that...

It's time to jump to HIVE and compare this with our blockchain... On Hive, there is a thing called "rewards pool" from where we "MINE" tokens by curating (upvoting) other's posts... So, when there are some major dumps on the crypto markets, people tend to "forget" about content creation and got hypnotized... In those moments, our "difficulty" is lower and YOU as a content creator have more probability to receive better upvotes as there is not a huge amount of posts... In those "bad times" you can actually earn the most HIVE... Yes, that number under your post is maybe lower, as it is in USD, but you are getting more HIVE for your posts... And that is the most important thing in the long term, isn't it?

Check out the video for a more detailed story with examples...

Thank you for your valuable time,

~ph~


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Music in video:
Growing Up by Scott Buckley https://soundcloud.com/scottbuckley
Creative Commons — Attribution 3.0 Unported — CC BY 3.0

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29 comments
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Perfect analogy man. I keep repeating it all the time. Write posts when Hive goes down lol. That's when you get the most hive, the most upvotes :-)

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It's always like that... Build when nobody is building as a building material is also cheaper... :)

!ENGAGE 10
!LUV

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Indeed these are the moments when those that are consistent and keep on showing on the Hive stage are getting more tokens than before. Fewer people mean more rewards to fewer participants, this is why those that are here because of their passion usually get quite well established on the Hive blockchain.

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this is why those that are here because of their passion usually get quite well established on the Hive blockchain.

Exactly! I have grown my portfolio the most when HIVE was under 20c, as well as when you were doing the same... It's not that we aren't doing it for money, it's more about doing it without thinking about the money...

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!LUV

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I kept posting cause I didn’t care about the price, but I was also well aware that I was probably earning more in the long run

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You did that for sure! It's hard to recognize because of the low HIVE price in certain moments, but it adds up... ;)

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!PIZZA

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Your posts always have something to teach, thanks for the enlightenment

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Thank you for checking my posts! Appreciate it! I hope it will help you in your HIVE journey!

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So True. There are so many people that are only looking at the short term prices of crypto that they overlook the potential of what it might become. Hive will be in the mainstream given time and I want to be one of them that has a good number at that point in time.

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That's the right thinking! Positioning yourself on time... Try now to mine BTC or even buy some... The same goes for any other crypto, and not just crypto... The biggest growth is when the project is young...

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I post and comment as I can without worrying about the price. It's too bad my time hasn't been the greatest so I tend to prefer commenting but it builds up over time.

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I suppose that commenting can be also profitable... You got some upvotes on comments and you get some great connections for the future, too!

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!PIZZA
!BEER

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