Oooh that's a tough one, despite the 10 years guaranteed to debase in purchasing power terms, you still have the coupon payments and the possibility to trade it within that time if you know what you're doing.
While the miner carries risk too, there's the competitiveness of the device over 10 year period, which will probably become obsolete in terms of premium returns ever 5 years, then there's the risk of compass failing, or governments shutting them down
So to me, the miner is the riskier bet, but I would still go for it. If it's just holding though, for 10 years, versus the miner running for even 5, id' still go for the miner
My reasoning is that the bond payments are in cash, which i probably would now hold or try to reinvest, while the miner pays out in satoshis, even if the miner is canned earlier, I still have custody of the satoshis in a private key held wallet and the longer the miner can run, me taking that risk, the more sats I have.
So i'd opt to run it till its shut down in one way or another, if it makes the 10 years great, if not I still have the sats that I can now hold and still get purchasing power appreciation
Great answer! If the government can fix its fiscal policy the debt can be covered by tax receipts thus protecting your principal. Hosting mining is super risky but it’s reasonable bet that BTC will be the collateral the world wants.
There is almost no risk with the 10y Treasury. You are guaranteed to earn less interest than inflation will devalue it. A guarantee to loose = no risk.
The US government is insolvent. They use new debt to pay for old debt and the Fed is monetizing the debt. The government could go belly up and stop all payments especially if tax revenues decrease substantially and foreign investor lose confidence in US treasuries.
B is far more risky. 10Y treasuries is as safe as it gets.
Mining is a relatively new industry, with new regulations and bans every few months. Compass mining have a lot of capital held up and liquidity must be extremely difficult to manage.
Depends on what you mean by riskier. A is more bureaucratic, which allows you to at least make an educated decision with some protections. I think you would end up losing less money with option A.
With option B, I know some people who are paying for hosting who are still waiting to be hooked up. The drawdown on this option is higher because you're not guaranteed anything.
Interesting question... I am also curious to hear people make their case. My gut says B is more risky, though I guess you get to keep your sats so maybe over time B gets less risky.
Experiment: I will match @BlokchainB with 100 sats for the best answers!
Because the average individual may require much knowledge and time and funds to use and maintain a/an hosted miner. And if the right market conditions occurs, especially during a bull-run year like in 2021, could cause one's small investment to 1x or 10x even, depending on the amount of invested at first.