Strategy
Does mining actually earn more than DCA-buying the same asset?
Honest comparison of GPU mining vs DCA buying. DCA wins on coin count, but mining offers hardware resale, UK tax deductions, and forced accumulation.
Honest answer: on pure coin count, DCA wins. If you invest the same total amount (hardware + electricity) as a lump sum into buying coins, you will accumulate more coins. That's a mathematical fact. But coin count isn't the full picture.
⚠️ The table below compares the total cost of mining (hardware after resale + 10yr electricity) to the same amount spent on DCA buying. This is an apples-to-apples comparison.
On coins alone, DCA accumulates Infinity× more coins than mining. So why consider mining at all?
🎯 Mining's real advantages aren't about coin count:
| Mining Advantage | Value | DCA Equivalent |
|---|---|---|
| Hardware resale | £16,800 back (60%) | Zero — if coins crash, investment lost |
| UK tax: AIA write-off | £28,000 equipment deduction | No deduction for buying crypto |
| UK tax: electricity | £10162 deductible expense | No deduction |
| Est. tax saving (20%) | ~£7632 | £0 |
| Multi-coin flexibility | 14 tokens, switch anytime | Locked to one asset |
| Forced accumulation | Mines daily regardless of fear | Most people stop in bear markets |
| Downside floor | Hardware + resale = never £0 | Total loss if coin dies |
🎯 The honest conclusion: If you have iron discipline and will DCA every single month through a 2-year bear market without stopping, DCA wins on raw returns. But research shows most investors fail to maintain DCA during crashes. Mining removes that human weakness — your rig accumulates whether you're confident or terrified. Add hardware resale and UK tax deductions, and mining becomes a lower-risk, tax-efficient accumulation strategy rather than a higher-return one.
Mining is the better choice when:
- You want downside protection (hardware retains ~60% value)
- You're a UK taxpayer who can claim AIA and expense deductions
- You want exposure to multiple tokens without picking winners
- You know you'd stop buying during a brutal bear market
- Electricity is cheap (£0.05/kWh or less — solar/off-grid)
DCA is the better choice when:
- You have genuine iron discipline through multi-year downturns
- Electricity is expensive (UK Grid £0.26/kWh)
- You have no interest in hardware management
- You want maximum coin accumulation above all else
ℹ️ Figures use MEWC as an example with green/solar electricity at £0.05/kWh, 15% annual difficulty growth, and Miner 1000. The mining/DCA coin ratio varies by token — smaller-cap coins like MEWC give mining a better ratio than large-cap coins like ETC. See the Tax & Regulation FAQs for details on UK deductions.