Is there a future for Bitcoin mining?
In order to be able to think on that and come to some realizations of our own, we should firstly look into its past history. History is meant to repeat itself, especially if we do not re-examine it, nor learn from it.
At first, Bitcoin mining was extremely profitable, and had a very low entry fee, though it was not profitable right away. Individuals had to mine the coins and they earned a lot in the very beginning – but there was no value to the coins. It was not until months later that Bitcoin began gaining any monetary value, which led to the purchase of a pizza… which had cost around 10,000 bitcoins. So, let’s examine all of this slightly closer: individuals used their own home computers (in many cases) to do the mining; they had to pay for the electricity in the process; and were earning a few coins a day. All this work would have amounted to the 10,000 bitcoins we just read about in order to buy only one pizza! Undoubtedly, this hassle would have not been very enticing or appear to be profitable during those times. However, there were individuals who stuck with it – and awoke one day to realize that just one bitcoin was worth approximately 400 USD (as of April 9, 2016).
What a win, indeed: Mining only a few coins a day, and around two years later, discovering they are worth 400 dollars each! But, who would have known? It is unfortunate, but many quit mining at the beginning of Bitcoin, bought pizzas – or just forgot their coins in lost wallets. Most certainly, they would have wished now that they had have hung onto those coins.
In today’s current world, Bitcoin mining has certainly changed. It’s much harder to perform it now and costs more – all with the earnings being just about the same! In order to mine Bitcoins, it is recommended in most cases that one purchases a specific “miner” (some of them are cheap, and do not require as much electricity as they did back at the beginning); or that one subscribes to an online service and mines online. The profit is small – but again, with about the same time invested, one will not mine a few coins per day – but one coin in a month and a half (with a similar setup). However, due to the increase in the price of bitcoin, you can now eat your pizza within relatively the same time frame.
And yet, the question still remains: Is there a future for it? If one was to start mining right away, but did not purchase the pizza – would it actually equal tens of thousands of dollars in the days (or years) to come? It is hard to say, but having examined the history of Bitcoin and the fact that many are investing in it; it is not utterly impossible. There may be little ahead – or there may indeed be another explosion, where it’s price jumps from 400 dollars a piece to tens of thousands… in only a matter of time. Regardless, if that does happen, that pizza will cost a fortune, once again. We can only wait in hopes – and perhaps, do some mining in the process, while we’re at it too!