April 30, 2013

Bitcoin Mining vs Oil Drilling

Why Bitcoin mining is like oil drilling - 

Sal Cangeloso in ExtremeTech gives his experience in mining Bitcoins using average gear 
While every indicator I have points to my mining operation as being a profitable one, it’s highly dependent on the value of Bitcoins. If prices drop well below $100/BTC again, the operation will make so little profit that I might as well aim those boxes at something more practical, like SETI@home.
A lot like drilling for new oil wells, which need oil to be over $100/barrel for the venture to be profitable.

His Bitcoin mining setup:            850 Mh/s (using standard PC’s and graphics cards)
Current Bitcoin network:           80,000 GH/s

To get good success in finding new Bitcoins, you need a setup, which is comparable in speeds to the overall network.


Tags: Bitcoin mining vs Oil drilling, Bitcoin mining like oil drilling