Bitcoin

Local Mining vs Cloud Mining

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PC Mining

In a previous post, I talked about mining with one of my old computers.  While my initial experience was fun and it generated a feeling of accomplishment, I soon realized that my current setup wasn’t going to make much (if any) money.  The PC I was using simply didn’t have enough computing power.  The graphics card was a few years old and while it worked great for my everyday tasks, it wasn’t up to the challenge of pure number crunching needed for the mining operations

Taking it to the next level, I would need to upgrade my graphics card.  This would require an investment of about $800.00 for a decent card with the requirements needed in order to do the job.  If I really wanted to take it up a notch, I would need to buy several graphics cards and run them in parallel on the same machine.  However, I actually don’t know if my current PC would handle it.  I think the mother board would be fine but I would need an upgrade to the power supply, which meant a little more money.  In addition due to the extra heat, I would probably need to build and open air rig.  Suddenly my budget of $800 was multiplying.

Dedicated Mininers

A second option is to buy a designated mining rig such as the Antminer s9 but those are around $3,000.00 (side note –  Today I’m seeing several sites advertise them around $1,899.99 – but not by bitmain).  This device is a dedicated to mining, which means I can’t reuse it for something else in the future.  If I decide this whole thing isn’t worth the trouble, I end up with an expensive paper weight (or I can try to re-sell it on ebay).

In addition, the main problem with purchasing one, is finding a reputable re-seller.  The makers of bitmain makes the miners in batches.  Once all the batches are sold out, you have to wait until the next batch.  You can find them online from other vendors, however bitmain does not have an authorized re-seller (see their blog post here fraudulent-websites-and-scams-alert).  Buying anywhere else, you are at your own risk.   If you decided to buy one from someone else, make sure you do your research on the sellers.   Personally, I would wait until the next batch is available directly from bitmain.

Cloud Mining

A third option is cloud mining.  With cloud mining I’m essentially leasing the equipment from someone else.  To me this seems like the easiest and most hassle free route.  For starters I don’t have to buy and maintain equipment.  There’s no excessive noise to worry about and I won’t have to deal with a sudden spike in my power bill.  The biggest questions in my mind along with everyone else’s:  Can I make money?  Is it a scam?

Based on my calculations, yes, I can make money.  However I won’t know if it’s a scam until I take the chance.  I’ve read several post that indicate both sides but I won’t truly know or be able to do a review until I try it myself.

My Decision

For me it was settled.  I decided to take the chance and try the cloud mining.  I’ve purchased contracts for both Genesis-Mining and Hashflare.io.  If you want to check out the sites see the links below.

Genesis-Mining

Hashflaore.io

Next Steps

I’m currently writing reviews for both.  The first one will be on Genesis Mining, which I should have done in a couple of days and I’ll follow that up with one on Hashflare.io a few days later.  I also, plan on releasing subsequent reviews at the end of each month to keep you up to date with their offerings as well as my experience (e.g – am I making money).  I’ll give you a hint, yes they are generating revenue.  I’m not getting rich quick but they are producing.

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