Recently, so much hype and controversy have been dominating the headlines. Suddenly, there is this new kind of currencty and everyone seems to be in love with it. With all the hypes and rag-to-riches story, many people are thinking of jumping into it and put up their own bitcoin mine. But do you think you’re up to it? Have you determined what the ROI would be like?
Certainly, anyone who’s developed interest in building their bitcoin farms are drawn by the massive payout.
If you ask me, such expectation could be the natural effect from all the media buzzes surrounding the brand new electronic currency. I am sure you would have learned about a lucky Norwegian guy who spent mere US$26.60 only for that sum to magically become US$886,000 in 2013. I believe you would not need me telling you how much ROI that will equate to. It is simple 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 fortunate chap. That relates to me too. Everybody hopes to produce big fortune when they consider creating their bitcoin farms. But can it be practical? It would have been 5 years back but, not today.
Have you considered simply how much capital would you need or be willing to spend to setup such mine? A recently available blog article reveals that even when you’ve 600 quad-core computers working with 2.8GHz clock for 12 hours each day, you’d end up with pathetic $1,300 annually. And don’t forget that bitcoin mining can only get harder after every successful mine.
Needless to say many argue that this analysis has been too simplistic. The number is based on the assumption that no software optimization is conducted on the set up. These are good reasons, I agree. But when you further analyze it, all the optimization efforts and hours spent on it should also be included in to the initial capital requirement. When everything is taken in, I believe the situation wouldn’t have been much brighter.
If you’re considering this say 5 years back, I do believe you’re a genius. But if you’re just starting to think of it now, I think you’ve no idea about what you’re doing.