I was studying Bitcoin mining for awhile, and was trying to understand how profitable it will be in the future. Every four years mining bitcoins goes into "halves". Example: if it was 16, it will go down to 8 then after another four years it goes to 4, then 2 etc.
Therefore if the VALUE of bitcoin doesn't rise, then mining bitcoin will not be profitable as the amount of electricity it would cost wouldn't be worth it. The Chinese government (which is over 50% of mining) was saying they are going to raise the electricity bill on all Bitcoin Miners.
Well my thoughts are that a single Bitcoin would have to drastically increase from what it is now $7k, to $50k, $100k, $250k, $500k, $1 million and so on. Which if you purchased a single coin, then you could potentially retire before you were 65.
Why am I telling you this?
Well on my search for how I would get into this "potential" investment, I don't have a lot of money to invest as I recently got a Mortgage, 2 cars, my spouse and I are about to have a baby soon etc. I wanted to know if I should "buy" or "mine" bitcoins.
I did a lot of deep searching, but so many scams on the internet that it seemed to be safer to just buy and hold. Just before I was about to buy, my friend told me he was making more money "cloud mining"?? I looked into his cloud mining company and seen the results he was getting and how unorthodox it was compared to other mining companies i seen.
Simply it works like this.
Instead of buying "Hash Power" you're really buying a "Share". This share is a 1000 day lease on new mining machines. Your share is divided into a pool of other investors, and you get whatever the machines mines every single day. I thought this is very interesting, then I also found out that I can automatically re-invest a percentage back into the pool, so I can buy a "partial share" This partial share is also a 1000 day lease, so theoretically i am able to mine bitcoins until there's no more bitcoins to mine because my partial shares are "compounding". The last bitcoin to mine is 2140, so I'll already be dead by that point.
I asked my friend if I could make more accounts and have more shares, and he said "absolutely" the co-founders recommend it. "why not, they are just getting more money out of you, lol :) "
So i recently just created 9 accounts, and paid for 3 mining pools and I'll be using my profits from this to pay for other mining pools and just rapidly continue to buy more and more shares. I found that this is the best decision, if I continue to reinvest. I noticed my friend has only been doing this for a year and he's made 6 Bitcoins, and expected to make 2-3x that by the end of this year.
He's already covered his initial investment in a short period of time because he continues to reinvest over and over and over again. I just wanted to spread the "Cloud Mining" that I'm doing and wanted to show you an example of one way "Cloud Mining" companies work.
I hope this helped anyone that didn't know anything about bitcoins or were interested in bitcoin mining but didn't know where to start.
Submitted March 31, 2018 at 06:13AM by kroma86 http://bit.ly/2Ie6K7O
No comments :
Post a Comment