Bitcoin Step by Step

The Best Way to Get Started

Do I mine or not?

When considering if you should buy mining equipment or not, here  is a simple formula to use.

How many BTC will you have if you buy Bitcoins today with the same amount of money?

How many Bitcoins can you earn with the miner?

If equal buy Bitcoins .

If fewer by mining buy Bitcoins .

If more with mining and you are confident in the values you used when estimating, then consider buying the mining equipment.

In order to get the most accurate information you need to learn how the system works and where to get accurate data.  I review the formulas in my book Bitcoin Mining Step by Step.  The one key piece of data is what will the difficulty be?  to answer that you will need to understand why we are where we are in the total network hash rate.  then understand that as the price of BTC goes up so will the mining equipment purchases.  If it drops then so might the mining equipment purchases.

There is a point of saturation or equilibrium when there is just the right amount of mining versus value.   When the value is too low, you’ll here all the new miner who haven’t hit their ROI griping about it, if the value is high, you’ll see increasing back orders.

When considering where to buy consider this:

  • Past performance and ability to deliver (This rules Butterfly Labs out)
  • Cost per GH
  • Cost in energy to run
  • Geographical Location

There are mining manufactures around the world.  Why would you want to have to wait an extra week or two for delivery, when every day is money?  Why would you want to pay custom charges?

If you are in the US and are unsure where to buy? CoinTerra, is the place to buy. (http://cointerra.com).

If you are in Europe consider KNCMiner.

If you are in China, there are a few to pick from.

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9 comments on “Do I mine or not?

  1. Zamri
    January 7, 2014

    I found your post comments while searching Google. It is very relevant information. Great work. Regularly I do not make posts on blogs, but I have to say that this posting really forced me to do so. Really awesome post. Really fantastic and I will be coming back for more information at your site and revisit it! Bitcoin Mining .

  2. crocko
    January 7, 2014

    Information incomplete, you missed many others legit ASIC manufacturers.
    And you forget to mention the 3rd option: to start a business with coins (BTC/LTC/PPC etc.) based payment. This will give the true value to the Bitcoin, not the speculations on the exchange market.

    • Bitcoin Step by Step
      January 8, 2014

      You are correct. I didn’t mention all the ASIC mining equipment out there. There are many others. To be fair here is a great place to find other options: http://mining.thegenesisblock.com.

      Starting a business is another way to make BTC, but that is really a separate concern versus mining. I would encourage everyone to find a way to provide services for BTC, and or convert existing service offerings to accept BTC.

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    It was really informative. Your website is very helpful. Many thanks for sharing!

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    February 13, 2014

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    March 21, 2014

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  8. kdjsjh43jj
    April 28, 2014

    Great post. I’m experiencing some of these issues as well..

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This entry was posted on December 13, 2013 by in Mining.
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