HI guys,
I was hoping to post this some were else....but as a new member this is the only place i can post apparently.
I got into Bitcoins a few years back, i am a Futures risk manager and i started to mine on my GPU`s.
With bitcoins trading at $90 back then i thought i would get involved. Ended up getting distracted and missing the boat.
I am now not happy as you can imagine, i could have been an innovator but now i am a lagger!
Any way to my point and research here.
I was looking to buy a 2 THs machine from Black Arrow for $6,000 shipping start of march 2014.
Here is my concern!
The Difficulty level has been rising at about 28% every 11 days.
So as of today 12/13/2013 the difficulty levels is at 908 Million.
Lets put this into a chart now, with a 28% rise every 11 days on the difficulty level.
http://www.vnbitcoin.org/bitcoincharts.php2nd chart down has it bang on, i tried to upload my chart but i cannot find the image upload function on this forum.....i must say it’s not very easy to understand this and i have my online banking forum I coded very user friendly!!!(rant over...moving on)
So at the moment with the current level i would be able to mine 1.1073 BT a day on a 2 THs miner
But when i get my machine early march (if they deliver on time) the difficulty level is going to be at roughly 6,000 million
The 2 THs machine would only mine 0.1674 BTC a day.......so roughly 1 week to mine 1 BCT.
SO lets assume BTC stay at $800 a coin, it would now take me roughly 2 month to Break Even on my machine.
And this is not considering that the Difficulty level will be rising 28% every 11 days while i mine to Break Even on my machine and the fact this machine will be pulling 2000 Watt from expensive UK Lecky bills!
So in this case all im relying on and gambling on is in hope that Bitcoin will continue to rally to higher prices
1 thing i have not factored into this hypothesis is the fact can the Continued hash rate of the network keep rising parabolically, which is what the prediction data is supported by?
I mean if we see this prediction play out, that means there is going to be a serious amount of power increase in the bitcoin network.
I have not worked this out yet but when i do this weekend i will update this post.
Would love to hear everyone's views on this