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.