Thread by @mjdsouza2

1) You all will be SHOCKED & that's our job .@BlockwareTeam

Data Driven Analysis: Mining #Bitcoin vs Buy & Hold BTC – Which is the Optimal Strategy to Capture the Long-Term Opportunity?

On Paper vs Real Results differ radically. We analyze 2 Mining Strategies vs Holding BTC:

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1. Buy & Hold Strategy: a miner buys Bitcoin and holds for the long-term
2. Mine & Sell to Cash: a miner buys a mining rig and sells all rewards daily to cash for the life cycle of the machine
3. Mine and Play with House Money: a miner buys a mining rig and

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sells their operating expense to cash but holds the remainder in Bitcoin.

4) With the proper strategy & time horizon, BTC Mining offers opportunities to outperform simple buy & hold strategies. Many market participants get distracted by the illusion of being able to buy BTC at the low & sell at the top. This is an improbable, lottery ticket strategy.

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During Bitcoin’s 10 years of existence, lets analyze the opportunities to exit:
•Bitcoin was at $20,000 for only a few minutes
•Bitcoin closed above $17,000 only 7 days
•Bitcoin closed above $12,000 a total of 43 days over the past 10 years

6) BTC may hit high prices, but it doesnt hold the highs. Overcoming the pressure & emotion to sell near highs is difficult & improbable – not even the greatest money managers in history achieve this. This is why On Paper Results commonly under perform & deviate from Real Results

7) The Bitcoin Mining Industry is in the early innings of a new Hardware Upgrade Cycle that is running into Halving just as we witnessed in 2016. It is a luxury to be deploying at the start of another Hardware Upgrade Cycle, which is being presented to us. blockwaresolutions.com/contact

8) Miners have the ability to deploy capital to Next Generation Equipment, which we believe will be the most realistic strategy to outperform over the long-term (2-4 years).

9) In Sideways & Down Markets – Mining still produces excellent yield:

Mining BTC still generates cash flow/BTC even if BTC declines in price. Mining is actually the most optimal strategy in a sideways market as holding BTC yields $0 but with mining, you still earn daily rewards

10 ) Evaluating Professional Money Managers:
From 2017 - 2019, 390+ Crypto Funds launched, but PWC estimates only 150 Active Crypto Funds remain. Not only were Funds unable to outperform BTC, but a majority blew out - losing the initial principal while BTC returned many multiples

11) Dollar Cost Averaging and its Benefits:

Dollar Cost Averaging entails deploying a fixed dollar amount into an asset in consistent time intervals. The capital injections continue regardless of market conditions, which allows the following advantages:

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1.Allows for the rare capitalization of Bear Market low prices
2.Avoid mistiming the market
3.Removes the emotion from capital deployment
4.Helps you focus long term

13) Bitcoin’s extreme volatility is best managed with a Dollar Cost Average Strategy, which mining achieves. DCA is an excellent strategy applied to markets with extreme volatility and an asset that one wants to accumulate a large position in over a longer time horizon.

14) Investors take advantage of Bear Markets because they are purchasing the lows while most are too afraid to deploy capital. Bitcoin is a best fit for such a strategy as it is still a technology and commodity in its infancy that is in price discovery mode.

15) It will have several more boom and bust cycles as it matures into Digital Gold so investors should expect continued volatility and have long time horizons. With Bitcoin Mining you are receiving Bitcoin everyday and therefore, Dollar Cost Averaging into a long-term position.

Tomorrow May 1st at 12pm CST/19:00 CET.

I will be going deeper into this analysis as well as providing updates on our outlook for Halving 2020 during .@BlockwareTeam Market Insights Webinar. Register through Eventbrite below & come with questions:

eventbrite.com/e/bitcoin-mark…

Hat Tip to , Wright Thurston, on pointing out s9 early deployment profitability.
.@DenisRusinovich @bitentrepreneur @ArctosCap @JoshMetnick @RyanTheGentry @NicTrades @cburniske @scottmelker @krugermacro @nlw @AriDavidPaul @kyletorpey @ToneVays @stephanlivera @Xentagz @PrestonPysh