How appealing is bitcoin farming, really?

May 17

There has been recently so much controversy around Bitcoin, the all-new electronic currency. Everyone appears to be captivated by the newest kind of currency. With all the hypes and poor-to-riches story, most people are thinking about jumping into it and set up their own bitcoin farm. But do you think you are up to it? Have you determined what the ROI would be like?

Obviously, anyone who’s developed interest in establishing their bitcoin mine are attracted by the massive payout.

Bitcoin-8

To me, such expectation is the natural consequence from all of the media hypes surrounding the newest electronic currency. I’m sure you would have heard about a lucky Norwegian guy who spent mere US$26.60 only for that sum to magically change into US$886,000 in 2013. I’m not intending to tell you how much return of investment that is equal to. You can do the the maths yourself.

Tales as this are what bring the fools to the picture. Everybody wish this guy has been them. That relates to me too. Everybody hopes to generate huge fortune when they think about creating their bitcoin mines. But is it practical? It would have been 5 years back but, not today.

Have you looked at simply how much capital would you need or be ready to fork out to build such farm? In a recently available posting, $1,300 would be what you’d end up with after one year and this is based on the assumption that you have six hundreds quad core computers running for 12 hours each day. And do not forget that bitcoin harvesting can only get harder after each successful mine.

Obviously many claim that this analysis has been too unrealistic. Many point out the lack of optimization that’ll certainly bring up the mining productivity and hence ROI. These are valid reasons, I agree. But if you think about it, all the optimization efforts and hours allocated to it should also be taken into the overall capital requirement. When everything is considered, I really believe the situation would not have been much brighter.

If four to 5 years back you’re thinking about the stuffs that you want to do now, I salute you and you’re a genius. But if only now then you’re thinking to make the jump, I believe you don’t have clear idea on what you’re saying.

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