In the vibrant framework of LABITCONF 2024, the most important conference on bitcoin (BTC) and cryptocurrencies in Latin America, held at the beginning of November in the city of Buenos Aires, CriptoNoticias had the opportunity to interview Julián Caccia, CEO of Coinbox Mining. This Argentine company specializes in the retail sale of cryptocurrency mining equipment, also offers hosting services and is currently expanding to countries such as Paraguay and Brazil.
Caccia offered an insider’s look at some of the most common dilemmas among those who are taking their first steps in the world of cryptocurrencies.
In addition, he addressed fundamental issues such as the viability of mining in Argentina in the face of increasing electricity rates, the interest of large international companies in the development of local projects such as Vaca Muerta, and the role that altcoins could play in the next bullish cycle.
As if that were not enough – and with the disclaimer that this is not financial advice or investment recommendation – the young businessman was encouraged to give his prediction for the price of bitcoin in this bullish cycle.
A common question that arises, especially among those who are just approaching this world: why mine bitcoin and not buy it? If we are reading that there are super bullish predictions for the price, why mine bitcoin? What is the advantage?
I think the difference is always in your level of risk. If you are a good trader, you understand technical analysis, you know when to buy and when to sell, it is probably better for you to buy bitcoin, not all at once, but making partial purchases to increase your capital.
On the other hand, if you are someone who wants a passive income and collect bitcoin month after month, mining may be more convenient, because it does not require you to dedicate time to it and generates a constant income. Mining is ideal for someone who wants to be in this world but cannot keep an eye on the markets. You simply store your bitcoins, “hold” them, as we say in the environment, and wait for a higher price to take profits.
What would be the initial investment necessary or recommended to start mining? And how long does it take to recover that investment and start making profits?
That’s the first question all clients ask me. It is key to understand that the return on investment depends on when you sell your bitcoins. You are going to generate bitcoin month by month, but if you sell them in a bearish cycle (bear market)you probably don’t average the best price. So the most important thing is to know when to sell.
In general, the return on investment is usually between a year and a half and two years, depending on factors such as the difficulty of mining, the cost per kilowatt and the equipment you have. Today, Bitmain’s newer models, such as the S19, are in that range. However, if you accumulate the bitcoins and sell them at a good price in a bull market, that ROI can be much faster. That’s what we recommend.
In Argentina, with the increases in electricity rates, is cryptocurrency mining still profitable? And do any adjustments need to be made to the electrical installation or can anyone mine in your home?
We always recommend proper electrical installation. We advise our clients in this regard. With the recent rate adjustments in Argentina, profitability has decreased compared to other times, but remains viable. However, there are countries where the electricity cost is much lower. Companies like ours offer hosting services that are usually more profitable than installing a miner at home.
I take you out of the world a little retail to go more macro. You told me about Vaca Muerta a while ago. How is that progressing?
[Nota de la redacción: Vaca Muerta es una formación geológica ubicada principalmente en la provincia de Neuquén, en el centro-oeste de Argentina. Es uno de los yacimientos de hidrocarburos no convencionales (petróleo y gas) más importantes del mundo. Tal como CriptoNoticias ha reportado, hay varias empresas minando Bitcoin en esa región].
It’s progressing well. Oil companies, like YPF, are believing more in mining. They are promoting large projects that will attract international companies when the exchange rate disappears and there is more tax clarity in Argentina. I think that will benefit both the country and the mining industry.
We recently saw that Marathon started mining Kaspa. Do you think that will be a growing trend?
Yes, it is similar to putting together a diversified investment portfolio. Large companies like Marathon, Riot and Penguin are betting on these alternatives because they understand that an upward cycle is coming and they assume greater risk. Coins like Kaspa, Litecoin and Dogecoin tend to perform well, and if bitcoin rises in 2024-2025, these coins could even outperform, generating more profits.
Leaving a little bit of mining (but not too much, because it is important for miners to have some notion of this) Do you have any personal projection of how far bitcoin could go in this cycle?
It’s not financial advice, but I think bitcoin can reach about $120,000. This cycle is special because, with the departure of ETFs, we will see something that did not happen before: the incorporation of the institutional and traditional market to cryptocurrencies. That could cause an exponential rise in bitcoin, although not so much in altcoins, since the ETFs are focused on bitcoin and Ethereum. I hope we reach even higher.
