How lucrative is bitcoin mining, really?
Lately, so much excitement and debate have been dominating the headlines. Everyone appears to be attracted to the new kind of currency. With all the current hypes and rag-to-riches story, many people are thinking of getting into it and set up their own bitcoin mine. But do you think you are up to it? Have you had the right expectation when it comes to its ROI?
The key reason why anyone is thinking of investing in bitcoin mine is basically because they want to make huge fortune out of it.
Given all the press headlines that place this new digital currency into the spotlight, such dumbfounded expecation is only natural. I do not know which story you’ve come across but the one that’s been making huge waves is 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 how much return of investment that’s equivalent to. You do the maths.
Too good too be true stories like this are what brings the fools into this new kind of currency. Everyone wish they were this lucky guy. That applies to me too. Everyone hopes to produce big fortune when they think of establishing their bitcoin mines. But can it be realistic? It would have been 5 years back but, not now.
Have you looked at just how much capital would you need or be prepared to spend to set up such mine? In a recently available discussion, $1,300 could be what you’d end up with after one year and this is on the basis of the assumption that you have six hundreds quadcore computers running for 12 hours each day. And do not forget that bitcoin harvesting will get harder after each successful mine.
Of course many argue that this analysis has been too unrealistic. Many point out the lack of optimization that’ll undoubtedly enhance the harvest efficiency and hence ROI. I would not see these claims as invalid. But to be honest, these optimization efforts and all of the hours spent on it will have to be taken into account as part of the overall investment cost. When everything is considered, I believe the picture would not have been much better.
If you’re thinking of this say several years back, I think you’re a genius. But if you’re beginning to think of it now, I think you’ve no idea about what you’re talking about.