It’s been more than a little bit of a slog. I thought I knew a lot about bitcoins and how the whole deal would work until I started actually turning over rocks, and found out that under the rocks were, well, more rocks. I have spent the last week or so turning as many of them over to try to find out what all is going on, all so I could go mining.
When I last left you, I was trying to buy bitcoin at the various exchanges. I wasn’t have a great time of it, and the one place I could get going forward at a decent price, Coinbase, tripped me up with a credit card processor that couldn’t seem to handle my address and ID information properly. For what it’s worth, as of this point, they still have the money on hold, which sort of sucks. I am sure it will come loose as they have already cancelled the transaction, it seems. It’s one of the flaws I see in credit card processors all the time, they are fast to take authorizations but they rarely close them out properly on a cancel.
Anyway, I was sort of at a dead end on this. I really don’t want to use regular credit cards to buy hashrate, but I really wanted to go mining. I don’t like to use a “good” card online unless I have to, and buying hashrate on credit is just not a really good idea. The temptation would be to buy more than you can really afford, and find yourself with bills you can’t cover if the crypto currency crashes. Buying Bitcoin on credit really isn’t your best choice – do it only it you have no other option. So I really wasn’t sure what to do next. Even Western Union appears to no longer be an option, they have announced they are backing away from crypto currency stuff.
Then boom, sudden good news. Out of nowhere, I got a message from Hashflare, they had contacted the credit card company and pushed the transaction through, and boom, I get to go mining! I have my first 1TH/s of hashrate at work. Woohoo! Customer support was a little behind (they are apparently quite busy) but they got it done and I am officially a bitcoin miner.
… and then, nothing.
Well, he’s the odd part about cloud mining. Unlike having a mining rig in your house or office, there is nothing physical to look at, touch, fondle, or whatever it is you might do. Instead, it’s just a website with a status page that updates every day with your earnings and so on. It’s all a little distant, you can’t log into anything, you can’t interact in any way really. You just get paid, slowly but surely. How much is the key question, right?
How much is actually one of the better questions I had early on, and honestly, it’s no really clearly defined in the sales pitch. I sort of had to just wing it in my own mind, because what it was going to cost actually wasn’t right out there. I paid $140 for 1TH/s as part of a “Black Monday” promotion. That is for 1 year of mining (or about $12 a month). After that, the ongoing cost is an amount deducted every day as a maintenance fee. You pay it in bitcoin, basically deducted from your daily take. It’s actually an amount of about 35 cents US, as near as I can figure it. For the first four days I have been mining, it has dropped fairly quickly as the price of Bitcoin itself is going up. That’s a good thing, as it leaves me more net bitcoin earned each day.
How much bitcoin am I earning? Well, my calculation based on the current price shows me paying off the initial amount purchased in slightly under 90 days. Continuing that in a straight line, it would suggest I would have made 4 times my initial amount at the end of the year. There are very few honest things that make that sort of return, which of course tends to worry me. But my risk is small, the rewards are great, and hey, I will probably get some more hashrate as soon as I can.
Won’t you join me? Click here to check out Hashflare (yup, my referral code) and check out the offers. It’s as good a time as any to get mining!