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Should you get into mining of bitcoins?

There has been recently so much controversy around Bitcoin, the all-new digital currency. Everybody seems to be fascinated with the new kind of currency. With all the hypes and rag-to-riches story, everyone is thinking about jumping into it and create their very own bitcoin mine. But do you really think you’re up to it? Have you had the correct expectation when it comes to its return of investment?

The key reason why anybody is thinking about investing in bitcoin mine is because they want to make huge fortune out of it.

To me, such hope is the natural effect from all the media hypes surrounding the new digital currency. I do not know which story you’ve come across but one that’s been making big waves is all about a Norwegian who found his US$26.60 worth of bitcoins purchased in 2009, suddenly worth US$886,000 in 2013. I’m not going to tell you simply how much ROI that’s equivalent to. You can do the the maths yourself.

Tales as this are what draw the fools in to the bitcoin universe. Everyone wish this guy has been them. I wish I’d been this fortunate. This is exactly why many people are considering establishing their bitcoin farms in the hope of earning enormous fortune from it. If you ask me, it would be have been a great idea 5-years back but not today.

First thing to ask is how much investment capital do you have allocated to build such harvesting station? In a recent discussion, $1,300 will be what you’d end up with after one year and this is on the basis of the assumption that you have six hundreds quad-core computers working for 12 hours per day. Mind you that this isn’t considering the fact that it will simply get more challenging as you mine more of the coins.

Bitcoin-9

There are folks who argue that the simulation model utilized in the analysis has been too pessimistic. Many point out the absence of optimization that’ll certainly bring up the harvest productivity and hence ROI. These are good arguments, I agree. But if you further analyze it, all the optimization efforts and hours spent on it also needs to be included to the overall capital requirement. When everything is included, I believe the situation would not have been much brighter.

If 5 years back you’re considering the stuffs that you want to do today, I admire you and you’re a genius. But when you’re starting to think of it now, I think you’ve no idea about what you’re talking about.

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