Now, if you are anything like I was on day 1, you are probably pretty confused by it all. Bitcoin mining is sort of part science and part, well, mystic geek speak that most of us will never clearly understand. So if you want to go mining, you need to put on your hip waders, because it gets really deep really really quick.
If you don’t really understand about blockchain technology and the basics of mining, you can check out stories like this one from Economist or check out this video from Bloomberg:
If you got past that and your eyes didn’t roll back in your head, and you didn’t do a full Exorcist head spin, then you are well and truly ready for the bitcoing and cryption currency adventure that is coming up.
My first consideration was looking at setting up a mining rig. I am handy with computers and I can assemble almost anything, but damn, some of those rigs look really sketchy! I also did the math using one of the crypto currency mining calculators (I will have a list of them linked somewhere and I will add it to this post when I do) and I got back some pretty depressing numbers. Electricity costs too much, the video cars are somewhat expensive, and I wasn’t going to get enough hashrate to actually mine anything of value. The numbers are pretty simple, a decent video card will bang out 50 MH/s (mega hashes per second). Based on today’s numbers, that would bring you in an astounding third of a cent a month, after you have laid out a pile of money and time on equipment. Quite simply, at least for bitcoin, mining at home is no longer a valid way to do it for most people.
Now, if you are considering mining some of the other crypto currencies like Etherium or Dash, the numbers may be different. Bitcoin is one of those worst mostly because it’s difficulty level is high and it’s payout is lower than most. However, the value of 1 bitcoin is eye opening!
So I was left searching for a better solution, and in the end, the one I found that appears to make some sense is called Cloud Mining. In my next post, I will tell you a bit about cloud mining for crypto currencies and then I will start to tell you what happened when I wanted to get started. It’s an eye opening experience!