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The BitCoin Hype – Can you really make Money with it?

I guess many are currently in the BitCoin fever and read daily about it in the News, Blogs or hear from a friend or colleague how many have made a lot of Money with it and potentially will continue to do so. That is indeed all true – but there is a big BUT too. Most likely none of those peoples given you the full scope or you read the headlines of a poorly researched Article. I am not giving you now any golden rules but what I want to do is giving you some insight and showing you places where you can find information that will give you a better understanding. At the end of the day if you understand the Risks and not just the $$$ sign’s then my Article was a success.

A few Points to consider:

  • Block reward in P2P pools paid out for Mining where reduced from 50BTC to 25BTC meaning that you share now only half per block.
  • The difficult Rate is increasing rapidly (changing every 2016 blocks) because more and more powerful Miner come into play.
  • New hardware Chip hitting the market – Application-specific integrated circuits (ASIC) that hit 500 GH /s each.
  • If you buy right now a 2TH/s ASIC Power Miner you will have to wait until January – February 2014 to receive it.
  • oh and did I mention Security? If you ever loose your BitCoins due to hackers then they are gone.
Don’t make any regrettable decisions to buy Hardware now and think you will make many BitCoins to buy your own Apartment with it. There are many factor’s to take into count. So lets just look at a couple of them in hope you will get a better understanding what you actually get into. Go and read the following Blog from a fellow miner who has been doing that for a good long while. eviltechmonkey.com

Mining BitCoins means

  • running a Computer + the Miner Hardware 24/7
  • invest a lot of money into competitive hardware if you want to succeed
  • your electricity Bill will explode
  • the room temperature where you host your mining rig will rise
  • mining is not a fully automated process buy and forget, you will have to troubleshoot it depending on your setup
asci_hardware
Get your self first familiar with Mining who does what and what does that mean for the market, read a couple of the below sites that post regular news around BitCoins. Specificly check for the interesting news like Virtual Mining Corporaiton buys new Chips to reach 24.5 TH/sec  

Mining Calculators

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Get a Market Overview – How much are BTC worth

After reading all that you should have some idea. If you still want to buy the old 50 GH/s Rig of ebay for 1400 USD then you go for it, or just donate the money to a Charity, at least you know its not just blown out of the Window. If you still want to invest into BitCoin because you do see a potential then maybe have a look just into Trading with them. Why not just purchase some BitCoins and watch the market, sell when you make the profit you looking for. I do believe you will see BitCoins hitting the 600USD+ mark potentially already beginning in 2014. And I am very sure that only the top dogs will be farming BitCoins with their Terra Hashing rigs…

Happy Mining…

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