Make Money Mining Bitcoin

make money mining bitcoinIs it possible to make money mining bitcoin? I’ll share my experience trying to mine cryptocurrencies like Bitcoin.

To be honest, I don’t fully grasp all the technical aspects of mining cryptocurrency for profit now. Not fully understanding every facet of something hasn’t stopped me from investing in things before, and gosh darn it, I’m not about to let it stop me now.

If you’d like to learn a bit about Bitcoin, here’s a link to the website. I wrote an article about Bitcoin on this blog about four months ago. At that time, you could purchase one Bitcoin for $188 US. Since writing that article, Bitcoin has crossed the $1000 mark and has since settled back into the $600 to $800 range. That interesting investment would have really paid off for anyone that invested in Bitcoin back then.

A few days ago, I got together for lunch with a friend. We’ve discussed various investments in the past and we had the chance to catch up a bit. I asked him if he’s working on any new projects and he mentioned that he’s now mining cryptocurrency for profit. He caught my attention and continued on to say that he’s purchased two pieces of equipment, really specialized computers, that are constructed with the sole purpose of “mining” cryptocurrencies.

These computers run 24/7. They require a fair amount of power and kick off a lot of heat, as well as being noisy. He said it’s best to have a dedicated circuit for the computer’s electrical needs. I asked him why he hasn’t purchased even more units and he responded that he only has so much electrical capacity in his home.

I’ve been having a fair amount of remodeling done in my home recently. About a month ago, I asked my electricians to add several outlets to an odd-shaped room in my basement. They said in order to do it right, they’d have to put the room on it’s own circuit, and I gave them my approval. Not long after my electricians finished, another contractor was doing some framing and insulating in my basement. I asked him to sound-proof a space under my future main floor media room. While he was around, I decided to also have him sound-proof the odd-shaped room, the one on it’s own electrical circuit, since one of my kids may practice drums in the room.

When my friend said the machines ideally should be on their own circuit and are noisy, that odd-shaped, sound-proofed room on it’s own electrical circuit in my basement came to mind. Since I have a perfect space at my house for mining equipment and he has the mad technical skills that I lack, I suggested a partnership. He e-mailed me the next day with a fair revenue-sharing proposal and I agreed.

He hooked me up with the gentleman that supplied his mining computer and I sent off nearly $4,600 to the supplier for one machine. The supplier said he should have my mining computer ready in about 10 days. In addition to the computer, my friend suggested I buy the fan and bridge below, which I did immediately.

                                    

How much can I expect to make from mining with one machine? Although we won’t be mining Bitcoin directly, but instead will be mining cryptocurrencies that are competitors to Bitcoin and then converting those into Bitcoin, for the sake of ease, let’s speak in terms of Bitcoin. My friend said he expects the one machine that I’ll be running will generate approximately 1.5 Bitcoin(s) per month. A Bitcoin is currently around $650, so based on that I can expect to gross about $975/month. My share of the revenue will be 80%, so my take should be about $780 worth of Bitcoin.

Based on his experience with his mining equipment (I’m buying the exact same equipment), he said that I should expect to pay $50-$90 per month additional on my electricity bill. Let’s say I end up paying an additional $80/month for electricity, after subtracting that off the $780, I should still be left with around $700/month in profits. Given I’ll end up spending about $5,000 to set everything up, if things go as planned and Bitcoin prices stay in the $650 range, I may end up with a returns in the 168% range ($700/month times 12 months equals $8400/year divided by the initial investment of $5000 equals 168%)!

I plan to update this post within a few weeks of getting my mining computer up and running. From there, it won’t take long to see the results. Although I haven’t read it, I’ve posted a resource for learning about mining Bitcoin below. Here’s the link to a resource from Clickbank about mining for Bitcoin.


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