Recently, so much buzz and controversy have been dominating the news. Everyone seems to be captivated by the brand new kind of currency. With all the hypes and poor-to-riches story, many people are thinking about getting into it and build their own bitcoin mine. But do you think you’re up to it? Have you had the correct expectation when it comes to its return of investment?
The key reason why anyone is thinking of investing in bitcoin farm is basically because they want to make huge fortune out of it.
To me, such expectation will be the natural consequence from all the media hypes surrounding the newest electronic currency. I do not know which story you’ve come across but one that’s been making big waves is about a Norwegian who found his US$26.60 worth of bitcoins bought back in 2009, suddenly worth US$886,000 in 2013. I believe you wouldn’t need me telling you just how much ROI that will equate to. It’s simple maths!
Too good too be true stories like this are what attract the fools into this new kind of currency. Everybody wish this guy has been them. That relates to me too. Everybody hopes to create massive fortune when they think of creating their bitcoin farms. Should you ask me, it would be have been a good idea 5-years back but not today.
Have you considered how much capital would you need or be prepared to spend to build such mine? A recently available blog article suggests that even if you have 600 quad-core computers running with 2.8GHz clock for 12 hours every day, you’d land yourself with pathetic $1,300 annually. Mind you that this isn’t considering the fact that it’ll just get more difficult as you collect more of the coins.
You will find those who contest the simulation model used in the analysis has been too simplistic. The amount is based on the assumption that no software optimization is performed on the farming architecture. These are good arguments, I agree. But if you further analyze it, all of the optimization efforts and hours allocated to it also needs to be taken to the overall capital requirement. When everything is considered, I believe the picture wouldn’t have been much brighter.
If you’re thinking of this say four to five years back, I believe you’re a genius. But when only now then you’re pondering to make the leap, I really believe you do not have clear idea on what you’re talking about.