Bitcoin is very familiar with breaking records and its about to smash another one. The cost of 1 Bitcoin is currently a staggering $9924.47 Australian dollars. When we look at the sharp growth, its likely the trajectory will take it past the A$10K mark in the next few days.
While I’d like to say I had dozens of Bitcoin, I don’t. After first hearing about Bitcoin on the Security Now podcast many years ago, I like many are kicking themselves in retrospect for not investing earlier. It is worth remembering that hindsight is a wonderful thing and back then the cryptocurrency was incredibly volatile, meaning you had to be prepared to kiss the investment goodbye if it didn’t work out.
In the early days of bitcoin, it was possible to mine your own and those who did, are yielding the dividends now. If you’re late to the game and think A$10K is just the tip of the iceberg, its unfortunately not realistic to create a mining machine in 2017 that economically makes sense.
Mining basically trades energy for outcome. The complex mathematics problems that are ‘solved’ by mining to discover bitcoin are so intense that farms of machines are now required to make any serious progress. Those machines use lots of power and we’re all very familiar with Australia’s high electricity prices, so the economics are unlikely to work out.
There are now services where you can rent a part of a bitcoin mining cluster and you take a percentage of the return. This was recently discussed on Kevin Rose’s podcast with old Diggnation co-host Alex Albrecht, which you can listen to here.
If you want to know more about mining hardware, bitcoinmining have a great post on the best hardware options available.