Cloud Bitcoin Mining: Is It Worth The Investment?
Some days ago I found out about cloud mining!
I stumbled upon bitcoin a few years ago. You know, when it was like ~$15-20, but I thought nothing of it and went on my way. You can imagine my disbelief as recently, I was reintroduced to BTC at around $800!
I am still new to crypto currency, but I believe I've learned a great deal of information in the past few weeks. I would really like feedback about this investment idea. From my understanding, you can mine bitcoin utilizing a remote data-center with shared processing power among other customers. The upside to this is there's no huge startup cost and no need to maintain the hardware yourself. Although, there is the initial hash power cost, plus electricity and maintenance fees.
Before I include fees and the difficulty factor here's what it looks like:
This is considering the reward is 12.5 BTC/Block
This is considering BTC stays at $880.34
1 TH/s is sold for $100
- Per Day - .00081074 BTC = $.71
- Per Week - .005677516 BTC = $5.00
- Per Month - .02467681 BTC = $21.72
- Per Year - .29612172 BTC = $260
Difficulty looks like it's growing exponentially.
I'm assuming this means an exponential decrease in revenue from mining?
I also noticed the more hash power you have, the longer it takes before mining becomes unprofitable.
Now, including fees and a %10 difficulty increase every 2016 blocks(2 weeks). The calculator says if I buy:
- 1 TH/s, it will become unprofitable by March 2017
- 10 TH/s, it will become unprofitable by February 2018
- 100 TH/s, it will become unprofitable by January 2019
When I say unprofitable, I mean that buying after that point is a guaranteed waste of money, unless BTC rises enough to keep up. Speaking of which, tell me what you guys think! Is bitcoin going to keep rising or will it bubble? If there is a variable I forgot to include or an inaccurate value let me know! Good evening steemian buddies. ☮