Why Bitcoin? The advantages of mining Bitcoin over altcoins
December 18, 2019 | mtmn20
Both miners and regular speculators are presented with many choices in cryptocurrency, mostly revolving around the tradeoff between risk and reward. The largest and most well-established coins such as Bitcoin, Litecoin, and others provide solid returns year after year. They are well-established, indicating that they...

Both miners and regular speculators are presented with many choices in cryptocurrency, mostly revolving around the tradeoff between risk and reward.

The largest and most well-established coins such as Bitcoin, Litecoin, and others provide solid returns year after year. They are well-established, indicating that they are likely to stick around for some time to come.

On the other hand, we have smaller-cap altcoins. These are often very alluring due to their occasional jaw-dropping returns, however the risks are much higher.

Like regular speculators, cryptocurrency miners are also acquiring something now (by “spending” computing power and electricity), which they hope will be worth than they paid for it.

The factors influencing their decision-making process, however, are very different. Let’s take a look at what must be considered when deciding on which cryptocurrencies to mine. 

Mining is a long-term commitment

First off, it is important to note that mining requires a high level of commitment. This is a stark contrast to typical cryptocurrency speculation, where one can simply sell one coin at market rates, and enter another position, at minimal cost.

Mining hardware and software are often designed and optimized for a single coin, or “type” of coin. This makes it difficult and expensive to switch between mined currencies, as equipment essentially “locks” miners into a narrow range of options. 

Even with more versatile hardware such as regular GPUs, different coins require different software to be mined, which can be tedious to configure.

The larger the mining operation, the more significant the cost of switching; knowing this, miners must select a cryptocurrency very carefully. 

Bitcoin has had better stability and longevity than other coins

If one is to invest a lot into mining a particular coin, that currency must survive long enough to provide adequate returns, as well as be stable enough to cover overhead costs.

For this reason, we prefer a well-established currency with a good outlook for long-term demand.

Bitcoin, having an entire decade of history behind it, satisfies this requirement more than any other coin. This extensive history of price action has also given rise to a variety of models used to predict long-term future price activity – something simply not possible with newer coins.

https://pbs.twimg.com/media/D8hLPlBWkAA6-On.jpg:large

1. Bitcoin long-term price model, sourced from Twitter user @awe_andwonder

It’s super liquid!

Adequate liquidity is also essential, especially when mining on a large scale. 

Mining an asset with good liquidity is required to able to sell it and pay for costs and realize profits. This needs to be done quickly and smoothly, while getting the best price with no slippage.

MintMine has chosen Bitcoin

In order to provide the most reliable returns for its tokenholders, MintMine will be focusing almost exclusively on mining Bitcoin. 

Bitcoin will maximize consistency of returns, as well as provide optimal liquidity and stable demand in the long-term.

This being said, the hardware used in the operation will also have the capacity to mine other large-cap altcoins including Bitcoin Cash, ZCash, and DASH. 

If occasions arise where it is more profitable to mine these coins, it can be done.

MintMine will be raising funds for their IEO later this year.

POSTED ON: December 18, 2019

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