When the miner turns into scrap.
Investing in DePIN projects means investing in a physical infrastructure network, which is completely different from buying tokens from a trading platform.
You are forced to pay real money to buy real devices — and this is the biggest inherent risk that many investors in this field overlook.
Therefore, careful consideration of these risks must be made before making an investment decision.
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🔸 Pressure on return on investment (ROI) and "difficulty bomb"
You buy a device or sensor at a price ranging from 1000 to 2000 dollars.
Initially, token rewards are high to attract early users.
But the laws of DePIN are "harsh":
The more participants there are 👉 the harder it gets 👉 the rewards for each device decrease.
With the volatility of token prices, the capital recovery period could shift from 3 months to 3 years!
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🔸 Risk of obsolescence and extinction
Technology is evolving at a crazy pace.
The device you buy today could turn into scrap within a year.
Unlike GPUs that can be resold to gamers or researchers,
specialized DePIN devices often have no value when resold.
What if the project dies or changes its algorithm?
Because the device becomes a useless broken metal.
🔹 Important advice
Never borrow money to buy DePIN mining devices.
Treat this type of investment like a venture investment in a startup selling devices.
And don't invest any capital unless you are prepared for the possibility that the hardware's value might drop to zero.
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The real question:
Are you buying a negative income printing machine?
Or are you buying an expensive piece that will turn into a paperweight on your desk?
