Is it Possible to Buy a Few Bitcoin Miners and Earn $1,000,000?
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Bitcoin is a new phenomenon which attracts people from around the globe. It is getting more popular and famous among even folk who haven’t been really keen on high-tech. They start thinking about exactly how it works and how they can get it. These questions bring them to Mining. The only way to get precious coins almost for free. Does it make sense? Let’s look at it, step by step.
Where do Coins Come From?
Bitcoin, as a system, doesn’t need a Treasury, a Central Bank, or any kind of government. It needs only infrastructure which backs all transactions and coins. Every day, thousands and thousands of transactions are to be proved and accepted. This makes the system work. All of these purchases and auctions are being verified by people around the world: by miners. When someone switches on a computer, sets up software for bitcoin-mining and connects to the Internet, then the game starts. The personal computer verifies transactions, working like hundreds of other computers. This is what keeps the system afloat. For that job, the bitcoin system gives a prize to miners for their mining in the form of bitcoins. Mine and get a bitcoin. Easy, at first sight.
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PC is Not Enough
When Bitcoin began, geeks and young programmers could create a lot of bitcoins by utilizing their own PCs. A few years ago, anyone could start to mine bitcoins using only his or her own computer or by purchasing a pair of GPU on sale, but times change. As the price of a coin rose and Bitcoin became popular, mining began to be a very profitable business. Geeks gave way to folks with money who wanted to earn more. They acquired lots of specialized processors known as ‘Application Specific Integrated Chips’ (or just ASICs) and started to mine as many coins as they could.
Price of ASICs depend on its model and computation power. For example, you can buywith 2Gh/s for $25, or you can buy with 1155Gh/s for $397.
Why So Many Coolers?
If someone has enough money to buy, let’s say, not a ASIC but a GPU, which are typically used for games, he or she faces trouble with heat generation. All of the equipment and processors, when working for mining, consume a considerable amount of energy, which matters if electricity is really expensive. With this in mind, if the power charges add up to more than the miner earns, it definitely is not a good idea. By the way, this is another reason why ASIC can be more valuable to a miner. Application Specific Integrated Chips are invented, developed, and assembled especially for Bitcoin-mining.
They have great efficiency for mining and the margin is much better because of their high speed of calculation and low energy consumption. Nevertheless, mining is a hot deal. Whether you use a pack of GPUs or have ASIC, in any case you will need to buy additional equipment. It’s going to be lots of coolers, which also consume plenty of electricity. This leads to more bills which should be paid. There is no way to get rid of coolers because they keep the processors’ required temperature. Take off the coolers and processors simply won’t work anymore. So, it’s vital for mining to have a sufficient number of coolers. As mentioned above, coolers also cost money and they consume energy, therefore, mining can be a complicated deal because of the special equipment needed.
Future of Mining
So, what is next? Cryptocurrency goes through a real boom, its prices rise up and drop down because it’s quite new. There are some doubts that one day it’s going to be an almost stable currency, and mining is another weak spot. What will happen when the cost of a bitcoin having been produced by ASIC gets too high? Today, miners need more speed, more energy, more efficiency, and more coolers. All of these speed up the race for bitcoins and make mining less profitable. When the price gets too high and people with ASICs start to sell them off, what will happen? What will happen with a system when speeds suddenly fall down at the same level of transactions? There are many interesting questions to be answered and many problems to be solved for the future of mining and Bitcoin as a whole.
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