Quote:
Originally Posted by AzzarTheGod
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tell him its not as easy as it seems, the top farmers already have huge farms with huge farming chipsets state-of-the-art computer farms. like compare what your brother could do to farm bitcoins to marijauna farming. Your brother would be growing a few plants in his house while the real bitcoin farmers are using a room full of computers and they have been doing this since bitcoin came out...some even have warehouses...
hope that helps. i looked into it. its a big investment just to compete against the top farmers and the headstart the farmers have is very very big. im not saying its not a cool hobby. just tell him its not the secret overnight success he thinks it is....if he gets into it, it should just be considered a fun cool hobby, nothing more. Like any hobby, it costs more money the more serious you take the hobby. The more money you invest into your farming operation the more bitcoins...but again, the farmers have a large advantage over a small operation for reasons i dont care to get into here. you can find articles describing how it works. at least if he understands how the farming works, he might be able to make an informed decision.
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it all come down to how much computing power is presently devoted to mining. at the current disco bounty, you need to furnish .002% of the total processing power to gross around $50/hr and that is gross, not net.
from there you have to deduct power and equipment costs. suppose there currently are a million registered mining units, you'd need 20 average powered boxes at an initial investment of $1k/box =$20k.
then from here you gotta consider electric costs. assuming each machine eat 1kw/hr, you gonna consume 14,400kwhr per month. if you lucky enough to live in a energy rich place liek the pnw, then you can figure $.11/kwhr, for a monthly electric bill increase of $1,584.
you also gotta think about how the hell you actually gonna power all those in a residential environment without tripping breakers. and how long the machines gonna last before they burn out? of course, if they working 24hr a day that $50/hr look a lot better than a normal 9to5, but they gonna burn out a lot sooner and they not all gonna be up all the time because you gotta perform maintenance and stuff. you gonna have fans die, etc.
bitcoin also half they disco bounty liek every 4 years, so your revenues gonna drop accordingly unless you furnish a larger share of the computing power. you share of computing power is gonna go down anyway though whenever new miners come online and the currency will necessarily devalue as more is issued. all the above assume the exchange rate hold at $1800/bc and no new miners to chip away at your contribution to the network.