I got started in bitcoin and mining after having a drink with a friend about a month and a half ago. We were in Starbucks and I remember saying to him that I used to be into making websites when it was the new thing. Now making websites is old and I want to get into the new thing again. And he started talking about bitcoin. I say a chart for the rise in value of bitcoin over the last year and since inception and I knew it was for me.
Immediately after getting home I started to research bitcoin more and also crypto currencies in general. It seemed obvious to me that block chain technology is going to change the way a lot of things work in our world and crypto currencies was probably one of the first things that will change the way our money system works.
In the simplest of terms, our currency is a fiat currency. Where as if someone has their life savings in dollars in a bank account it actual looses money over time. One of the biggest reasons this happens is the government is able to print more money, which makes the existing money loose value. Eg. if there is 1 trillion dollars in circulation and the government prints $100 billions more, then the value of the original $1 trillion actually goes down approximately 10%.
So, with bitcoin, the supply of them is fixed at 21 million, these means that the value of 1 bitcoin is going to go up, provided there is demand for the coins. At the very least, because no more bitcoin will be created (once the 21 million is in supply) then it takes power away from any centralized system, because they can print more money.
That by itself is an interesting concept and one that I am very curious to see how it impacts our society and definitely enjoy being a part of it.
Back to after I got home from having a coffee with a friend, the first thing I was curious about was to see if I could mine bitcoin at home, it turns out that mining bitcoin on a PC is not profitable on home pc's anymore because of the computing power needed and GPU's produce more than CPU's as far as mining bitcoins are concerned. So I decided to see what options there were for mining on my home PC and I found miner gate (affiliate link).
I downloaded the software and here is what it looks like:
As you can see in the video, the software runs alright, i was a little concerned about it burning out my pc and I even added the minergate app to 2 of my old android phones. I was surprised to the the phones mine just as well as my laptop does, just have to keep the phones plugged in 24/7 to mine 24/7.
At the time I am writing this post, the total mined is 249.6 bytecoin (note this is different than bitcoin).
In this time I have also tested minergate with mining other coins as well. However I decided to primarily mine bytecoin for no specific reason except to just stick with one to let it pile up.
When I first stared mining the coin was worth about $0.003 and a month and a half later it is worth $0.006. So I am relatively happy that it doubled in value, however the amount of time mining it is not worth the $1.40 or so it is worth now...unless it takes off at some point, eg. if it ever did go up to $1000 a coin I would have $200,000. But that seems very unrealistic at this point.
For the next month i am going to do some more research on alt coins and see if I find one that I think has a good future and is easy to mine and is at a low price right now.
That about sums it up as far as laptop and phone mining is concerned...now onto the bigger stuff that has paid off.
My bitcoin purchases
On Nov. 3, 2017 I had another coffee at a different starbucks with the same friend...and this time he was ready to download a wallet and purchase some bitcoin. So I decided to download the coinbase wallet and a blockchain wallet. My friend logged into coinbase and purchased bitcoin and then I gave my friend $20 cdn cash for $20 cdn worth of bitcoin. As you can see on the image on the left the value when received was $20.20 and on todays date (Dec. 19, 2017) it is worth $49.70.
Now that I had bitcoin in my wallet I was starting to feel more comfortable about buying more bitcoin...and seeing the price going up certainly encouraged me to buy more.
The next day I ended up texting my buddy and telling him to send me $100 more...which he did.
Around lunch time I received a notice that I received more bitcoin and
you can see on the image on the left that the value when received was $100.11 and the value on todays date (Dec. 19, 2017) is $244.33. So I did alright on this one as well.
Later on a helped out a friend and he paid me in bitcoin so that was another $100 in btc going into my wallet and that $100 is now worth $164 cdn.
Later on I made a few purchases of some other stuff (more about that further down this post). And I also learned a lot about bitcoin in this time and got the experience of owning btc including watching it drop 20% in a day and then other days watching it go up 20%.
As for the profits made on BTC:
BTC purchases/incoming: $220 cdn
BTC current value: $458 cdn
Profit: $238 cdn
So now on to mining. A buddy of mine bought 4 avalon 741 miners and an S9 miners. I helped him set up his S9 and helped out a bit with sound proofing for his avalon 741 miners. With the avalons he initially had an issue with 2 of the 4 kicking offline after 30 minutes of running them however that was resolved by running seperate PSU's (power supply units for each one). So I checked out his stats and could see that these things started paying him out. This got me thinking I should get some miners.
The challenge with miners is they are in short supply, so finding one often involves paying a little more money than the original purchase price, and getting them imported from China has some potential risks as well.
On top of that, the S9's come with a PSU that needs a 240 volt hook up (which my buddy ended up doing) so this means there is some extra costs involved and some extra work involved unless you go for the evga 1600W psu which I hear can pump out 1600 watts on a 120 volt line, however it seems to be that the line should be at least a 20 amp line on a 120 volt. Most homes have 15 amp lines in the house except for having heavier usage lines for special purposes.
The details of the Avalon and S9 miners setup and earnings I will likely write about in another post. After considering everything involved in having my own miners running I decided to take a second look at cloud mining.
I looked at genesis mining because I have seen it mentioned a lot online I took a look at their offers and they look good, however at the time of this post they are sold out. So I went on to hash flare, i read some reviews from people that have used it for cloud mining and decided to purchase some hash rate from them to test it out.
I started with a $60 usd purchase for 400 GH (0.4 TH). The purchase was simple and I just sent bitcoin to the wallet address they specified after making the purchase and once the btc payment was confirmed my cloud mining started to mine for btc.
As you can see in the screen cap, the revenue forecast for 0.4TH/s is 1.04 usd, and that is from a $60 usd purchase. Of particular interest to me is that hashflare pays out daily and has the option to reinvest daily as well. So once the payout total hits at least $1.50 usd it will automatically buy another 10 GH/s contract for me.
To add on to that is that by compounding daily, with the current payout rate of $1.04 usd on $60 usd purchase the interest rate on the purchase is 1.7% (at this time I don't know if that is before or after the pool fees. I will update that after I get paid for a full day of mining (so tomorrow).
Anyway at the rate of 1.7% lets take a look at what happens to the value over 365 days. For this purpose I will use the tool on compoundaily.com.
So, if the rate is after pool fees, and all other factors stay the same, then the payout after 365 days of reinvesting the profits is a total profit of $28, 144.82 for the year. Not bad for a $60 purchase. Remember though, none of this is guaranteed as the price of bitcoin could go to $0 or other things could result in none of this paying off. Do your own research as I am not a financial advisor.
Now to add up the profits from Nov. 3, 2017 to Dec. 19, 2017
Bytecoin mining: 240 bcn coins = $1.52 cdn
Bitcoin purchases: $238 cdn
Cloud mining with Hashflare: $1.13 cdn (one partial day of mining)
Total profits: $240.65