The Bitcoin Boom Reaches a Canadian Ghost Town – Bloomberg

This is a quick followup to why I don’t mine bitcoins or any other coin. The article touches on how people are buying and using dedicated minicomputers with special mining chips.

These chips are processors similar to the ones in your pc, but unlike the one in your pc, which is designed to be general purpose, this one is designed to do only one thing, mine bitcoins. They are way more cost and energy efficient than using your pc.

Then there is the electricity. They are getting it for 4 cents per kWh, DELIVERED! I am lucky to get charged twice that for generation. My taxes and delivery charges more than double that number. I pay nearly 20 cents per kWh. There is no way to compete with that, especially at only $7,000 per Bitcoin.

So, to sum up, I think it is passed the time where mining Bitcoin or other coins is a good idea. Investing in them is a different story, and that is for another post!

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2 Comments

  1. Wouldn’t touch bitcoin either. Had a friend try and get me into some group mining operation. The business model seems to be making money from referrals. Ran away from that quickly.

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    1. My initial interest came from a technology standpoint. I have no problem spending resources on learning. Once I had a feel for what it was, it became a question about true value. I like the idea of a coin system, but until you can trade it for something, its hard to justify. Maybe that will change over time.

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