[2014-07-18] Entrepreneurial teen mines bitcoins, pays father for the power

[erono]

http://phys.org/news/2014-07-entrepreneurial-teen-bitcoins-father-power.html

Campbell Harvey, a finance professor at Duke University's Fuqua School of Business, said the Triangle isn't a good spot for bitcoin mining given the relatively high cost of electricity here and the huge amount of power required to run the required computer hardware.

[1715065480]

1715065480

[1715065480]

1715065480

[1715065480]

1715065480

[Kprawn]

Well this is news.... {Most people says, it's not profitable to mine bitcoins, when the electricity is not cheap}

Well teens seems to know the answer, because this one, paid his parents electric bill and still made a $2000 profit. {What are we doing wrong}

Or mby miners want all the {gold} and they are chasing away the competition.  <<Nah I did the math, and in my country, it's just not worth it, our electricity is just too expensive>>

Hope it's one of our guys or gals here on the forum. 

[Rinndaranaur]

One sign that Evan Neal isn't your typical 16-year-old: He contributes several hundred dollars toward the monthly electric bill at his father's house to cover the cost of running his energy-hungry computer equipment.

My parents wouldn't approve of such electricity bills

[odolvlobo]

Well this is news.... {Most people says, it's not profitable to mine bitcoins, when the electricity is not cheap}

Well teens seems to know the answer, because this one, paid his parents electric bill and still made a $2000 profit. {What are we doing wrong}

You have to be careful with the word "profit". Lots of miners made a "profit" mining because the value of the bitcoins they mined went up so much in 2013. However, they would have made a much bigger "profit" if they just bought the bitcoins outright instead of buying the equipment to mine them.

In other words, they paid more than 1 BTC for every bitcoin they mined and thus they lost money mining bitcoins. But they overcame their loss by holding the bitcoins as the value rose.

[Cicero2.0]

Well this is news.... {Most people says, it's not profitable to mine bitcoins, when the electricity is not cheap}

Well teens seems to know the answer, because this one, paid his parents electric bill and still made a $2000 profit. {What are we doing wrong}

You have to be careful with the word "profit". Lots of miners made a "profit" mining because the value of the bitcoins they mined went up so much in 2013. However, they would have made a much bigger "profit" if they just bought the bitcoins outright instead of buying the equipment to mine them.

In other words, they paid more than 1 BTC for every bitcoin they mined and thus they lost money mining bitcoins. But they overcame their loss by holding the bitcoins as the value rose.

That is tough to do when you have an extended period of sideways market movements. Add in a race against difficulty rises and it gets tough.