Bitcoin Mining Is Now An Expensive Hobby For Most

A few weeks ago we set out to put-together an article about how someone can get started in the Bitcoin mining world. Since then we have connected-up with dozens of Bitcoin miners from around the world to get their feedback on how to get the most bang for your buck when it comes to mining hardware.

While we were hoping to put-together a great article on how to generate passive income through Bitcoin mining, through our research we uncovered some tough realities about the current state of Bitcoin mining.

bitcoin-mining

When Bitcoin was over 1,000 and difficulty was lower there was money to be made and thus started the Bitcoin mining rush. The problem is, with Bitcoin now well below 1,000, heck below 500, mining has somewhat quietly moved into the “hobby” category, and it’s an expensive one at that.

Based on our conversations with professional Bitcoin miners even spending thousands of dollars will not land you a mining operation that can turn a profit. Instead, you’ll lose money and if you’re lucky break-even, but given how low Bitcoin values have fallen and how challenging the next level of difficulty is going to be, it’s safe to say that the days of Bitcoin mining riches have come to an end…for now.

So why do people still mine? 

What we discovered is that there are still plenty of people mining, but they’re doing it for fun, and in almost all cases at a loss. It’s a bit like buying a video game system and continuing to buy games for it, sure you’re not making any money but you’re having fun.

People start mining now just for the thrill of setting-up mining hardware, tweaking it, and getting the best hash rate they possible can. While some are holding onto the hop that Bitcoin will once again move past the $1,000 USD mark, most are realistic and realize that mining will be a hobby for them and a fun way to stay involved with the Bitcoin community, but that’s it.

The best way to get Bitcoin right now is to buy it not mine it. Still, if you like tinkering with computers and want a safe hobby (sorry hockey fans) that can keep you entrenched in the Bitcoin world, go right ahead, just know that most-likely this will always be a hobby and don’t plan on quitting your day job.

We’ve decided we’re still going to write a series about how to get started mining Bitcoin, but we felt it was important to write this article first so people know what they are getting into. Stay-tuned, if you’ve wanted to mine Bitcoin you might not make any money doing it but that won’t stop us from putting together a badass tutorial to help you get rocking!

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