Why is there a saying in Bitcoin mining that “mine coins in a bear market and make money in a bull market”?

Why is there a saying in Bitcoin mining: “Mine coins in a bear market and make money in a bull market”?

Anyone who knows about Bitcoin knows that the famous Bitcoin was officially launched in 2009. At that time, 1 US dollar could buy 1,500 Bitcoins.

Then, in just 10 years, everyone has seen how much Bitcoin has increased? According to rough statistics, it has increased by about 20 million times. Isn’t it amazing?

Therefore, Bitcoin is also the currency with the most surprising increase among the more than 5,000 digital currencies recognized worldwide. And there is another fact that there are a total of 21 million Bitcoins, and so far, 18 million have been mined. How many are left? 3 million. According to the time budget, it will take about 2140 to mine all the Bitcoins.

Regarding Bitcoin, what many people don’t want to see is the production cut every four years. Many people tend to be pessimistic about the production cut. However, they don’t know that after each production cut, the price of Bitcoin often ushered in a bull market. We can look at the data chart below to see the gorgeous transformation of Bitcoin from a bear market to a bull market after the production cut.

So, there is a saying that I don’t know if you agree with or not, which is: mining coins in a bear market and making money in a bull market. Another benefit of mining in a bear market is that the computing power will not skyrocket. If it is in a bull market, many new mining machines will be added every day, and the computing power of the entire network will grow very fast. However, in a bear market, as long as the computing power does not skyrocket, the same machine can mine more BTC. When the bull market starts, sell the mined coins, so you will get a lot of income. So there is a saying in the mining circle: it is better to hoard coins than to speculate on them, and hoarding coins is worse than mining.

Bitcoin is a long-term investment, and you must not treat it as a general financial management. In the past 11 years, Bitcoin has been declared dead countless times, but what is the result? Instead, it is increasingly recognized by the public. After each reduction in production, it can make a comeback, which also shows the tenacious vitality of Bitcoin. The future must be a digital age, there is no doubt about it,

Therefore, if it does not affect your life, getting more Bitcoins, mining and hoarding Bitcoins is still a very good decision. (Baijiahao)