Lately, so much excitement and controversy have been dominating the headlines. Everybody seems to be captivated by the newest form of currency. But before all of the hypes enter your mind and start thinking about creating your own bitcoin mine, do you feel you’ve the fundamental know-how? Have you had the proper expectation when it comes to its return of investment?
Obviously, anyone who’s developed fascination with establishing their bitcoin farms are drawn by the massive payout.
To me, such expectation will be the natural effect from all of the media hypes surrounding the new digital currency. I don’t know which story you’ve heard but one that’s been making huge waves is about a Norwegian who saw his US$26.60 worth of bitcoins purchased back in 2009, suddenly worth US$886,000 in 2013. I think you wouldn’t need me telling you how much ROI that will equal to. You can do the the maths yourself.
Too good too be true encounters like this are what attract the fools into this new type of currency. I’m sure everyone wish they’d been this fortunate chap. I wish I’d been this lucky. That’s why everyone is thinking about creating their bitcoin mine in the hope of making enormous fortune from it. But is it realistic? It’d have been 5 years back but, not today.
The very first thing to ask is just how much investment capital do you have allocated to put up such harvesting station? A recently available discussion shows that even if you’ve 600 quad-core servers working with 2.8GHz clock for 12 hours daily, you would land yourself with pathetic $1,300 in a year. And do not forget that bitcoin harvesting will get harder after each successful mine.
There are folks who argue the simulation model used in the simulation has been too simplistic. Many point out the absence of optimization which will surely increase the harvest efficiency and therefore ROI. I would not see these claims as invalid. But when you further analyze it, all the optimization efforts and hours allocated to it must also be taken into the overall cost of investment. When everything is included, I really believe the situation would not have been much brighter.
If you’re thinking about this say four to five years back, I do believe you’re a genius. But if you’re just starting to think of it now, I think you have no idea on what you’re doing.Read More