So I’m into this whole Bitcoin mining thing. Yup. I took the plunge and I am in. Actually I did it way back in November last year and I don’t regret it for a second.
I’ve been considering the move into the Bitcoin industry for years now (dammit if only I actually did get involved when it was still $10 a BTC).
I started like every other geek probably did – mining from your own PC. I went through the whole rick-ma-roll of downloading a wallet, installing software and miners and putting my miners to work. After a week of setting things up and finally doing some actual mining I realized that I’m barely mining the equivalent of the electricity bill (this calculation of course was done on THAT current BTC price, little did I know (again)).
After trying the mining myself I left the idea for a couple of years and then considered getting an AntMiner and mine from my home with the proper hardware. Forking out R40 for a mining rig and then simply sitting back and watching as the BTC’s roll in sounds awesome right? By then things have simplified a bit and we had a local company BitX that hosts wallets and take BTC payments on your behalf. Again I failed to follow-through and let it go, the risk was simply too great to take. I got to the point of actually buying 1 second hand miner from a guy on OLX but didn’t do it.
Until November last year I decided to skip the effort of mining and actually buy 1 BTC. Then it cost R11 500 for 1 BTC. The best/luckiest investment decision I’ve ever made.
I decided to investigate cloud-mining as well. You take zero risk and let another company buy and maintain all the hardware costs, while they mine FOR you. This was one of the worst decisions ever (I initially thought). I was mining fine and would have broken even in 9 months and the started to make profit, but I didn’t take into consideration the admin fees these guys are taking , and the BTC difficulty rate that’s ever increasing.
Then I got lucky! BTC price jumped from R11 500 to R36 000 in 5 months and not only did the value of my 1 Bitcoin I owned more than triple in value I also mined 3 times more per day (in value) from my cloud mining contract. I then made my cloud-mining initial investment money back in 2 months and am now making a steady passive income every month.
So the question everyone is asking: Is cloud-mining worth it? It depends. I got lucky with the massive jump in BTC price. The admin fees of these cloud mining companies are insanely high, and the ever increasing BTC difficulty rating are the deal breakers when considering mining. If you can stomach these two then the returns are still the highest you’ll find compared to ANY financial investment (legal).
But, don’t let the price increase of BTC misguide you from the actual BTC that your cloud mining company is mining. If you look purely at the amount of BTC mined you’ll notice that it is decreasing monthly by almost 5%. As it decreases the admin fee you pay (which remains the same) is also taking a bigger chomp out of your precious BTC’s. It is an inevitable downward slope.
The question is: Will the projected growth of BTC exceed the knock I’m taking in decreasing mining and admin fees? In my opinion yes. And I do believe the BTC price will increase even more. And in a country where R15 is equal to $1 it is still every profitable.
So here I am sitting with 2 Bitcoins now, a few Litecoins, and two contracts with mining companies that are open.
Am I making money? Yes
Is it making me rich? Not yet.