Why I bought so many Leomm

After having the idea of buying the remaining Leomegaminers for a week and making countless lists of the pros and cons I want to share my thoughts why I pulled the trigger yesterday.

Let`s start with

The pros

Discount

The mega miners were sold with a 25% discount compared to the usual miners. Which means I don`t see them falling under the price of 6 Steem as long as there is interest in Leo and there are people who want to generate a passive income. Quite the opposite: to buy the mining power of one mega miner you have to spend 8 Steem now. So I could make a better offer than the usual market price and still make a profit.

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Passive income

I have to do nothing. They do what their name implies and mega mine Leo tokens. I am lazy and sometimes this lazy that I don`t post or even curate. I dont have to worry about optimal curating times or come up with something to post about and worry how the post is doing.

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Double dip

The money I put into the miners is not gone or spend it is parked. For the time it is parked it creates another asset I can use actively with curating which creates more.

Steemleo

I like tribes and I think the tribes with cater for a niche are very interesting. I listened to a podcast about tribes and especially Steemleo and was impressed. The amount of burned tokens and miners speaks for itself.

The cons

Mining power

While you can just open a mining farm for BTC and no other farm can deny your participation in the network and hashpower is just growing and the "only" limiting factor to how much hashpower you can create is how much equipment and electricity you can afford, Leo miners have a limited amount of hashpower.

Mining is pretty much the opposite to holding the coin/token. If you hold the asset you want everyone getting in after you to fill your bags.

With mining you want no one coming in after you as you have to share the rewards. The dream scenario would be you holding the only active miner.

This being said there are still a lot of normal miners on the market so the ROI I was calculating is not set in stone by no means.

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Liquidity

The liquidity is low. If I wanted to sell I have to have a long time frame or I need to make them so cheap it is hard to resist the offer which probably means selling with a loss. While my average price gets pulled down constantly through the mining without selling I there are some events which cant be really calculated and I was thinking to be even it will take me around 3 years.

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Risky

Investing into Steem alone is kind of risky. Investing into tribes I think is even more risky. While I am impressed by the Steemleo community and its leaders no one can say what Steem and tribes will look like in a couple of years.

Ongoing investment

To keep up with increasing "hashpower" more miners have to be bought. While it can be a one and done investment it might need some funds every now and then.

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I felt a bit sick in my stomach when I was clicking the buy button but for me the pros made up for the cons. Time will tell if I am a fool.