Bitcoin Mining, my latest get rich slow scheme.

Well, with an almost spiritual timing, (in that my synchronicity is unparalleled), I decided yesterday that I would investigate Bitcoin Mining and have a go. The reason I mention my timing is that today the bottom has fallen out of the Bitcoin Market and it’s costing me more to mine them than they are worth.

OK…so let’s backtrack a bit. A Bitcoin is a unit of virtual currency, that’s OK we are all used to virtual currencies, but Bitcoin is the most virtual of virtual currencies an, to be honest, I have very little idea about how much I have understood about them so the following may be complete crap…. but (*thinks* that’s never stopped me running my mouth/fingers off before) it seems like a Bitcoin is related to work in the same way that the Dollar used to be related to gold. Through some obsessively incomprehensible algorithms a Bitcoin can be produced by a computer programme called a Miner. So…the idea is that running these little miners on your computer produces a certain quantity of ‘Work’ which is redeemed for a quantity of Bitcoin.

So…I thought that my 8 core computer could beaver away mining Bitcoin while I was out at work or asleep and that could help me pay for a champagne lifestyle with little or no effort on my part… sounds like a perfect Plan B. My Plan A, Win-The-Lottery Plan, has not been going well for me as the Fascist Swine at the supermarket keep selling me the wrong ticket.

Last night after much mental sweating I got my 8 little miners chopping away at the number crunching stuff called khash, and I expected to awake this morning slightly better off than when I went to bed.

While I was a sleep the little buggers stopped working because my computer logged out…Doh!!

Anyway, before I went to work I made the necessary adjustments to my System Preferences so they couldn’t slack while I was away, and expected them to have crunched some stuff by the time I got back.

I came back to find them only chomping half the khash I had left them chomping and, after 6 hours it seemed like I had only made 0.002 Bitcoin whereas I should have made 0.004. Now… that equates at the current market rate to 4 cents US$ instead of the possible 8. So, I am making one cent per hour and although I haven’t checked it out I am pretty sure the eight of them are drinking more electricity than that. Basically they are drinking my profits.

Then, as you do, I went to check on the exchange rate for Bitcoin only to discover it has fallen through the floor. Article here. Good job I didn’t buy a new computer like some people did when the price was at its peak, nor do I think the devaluation of my 0.002 Bitcoin will leave me begging on the street.

Oh well, like they always say…if it sounds too good to be true, it probably is.

I guess Bitcoin will find it’s own level and it will probably be marginally higher than the cost of production. Guess I need to set up a wind turbine on my roof, one that I pinched from someone else, preferably.

Back to the drawing board.

:))

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4 Comments

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4 responses to “Bitcoin Mining, my latest get rich slow scheme.

  1. OMG Soror..always had you figured a smarty.. but BITCOIN!!??

  2. Yotoen

    Bitcoin is cool, even if it’s worth next to nothing right now, still fun to participate in the subversiveness of the project. Although it’s a far cry from the $11 that made it economical in terms of electricity consumption. Hang onto those coins, who knows it may suddenly go up again some day.

  3. Zauber Paracelsus

    The bitcoin value had bottomed out around the time when MtGox, the largest bitcoin exchange, got hacked and some of their accounts were drained of funds.

  4. Yep, I’ll keep my eye on it. Currently no blocks to hash. Cutting off mining when the price is low is probably a good idea.

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