Is Bitcoing Mining More Profitable Than Owning Gold or Silver?

Jon Steinberg, president and chief operating officer of BuzzFeed, weighs in on the digital currency, explains how and who is mining it, and unveils a bitcoin mining rig he built himself.

Is CryptoCurrency Mining Profitable?

You need tremendous computing power “to mine” bitcoins in an efficient manner. This is because it takes a lot of time and electricity for a computer to perform the calculations to crack the math problems that result in new bitcoins.

Bitcoin is not yet suitable as an investment. Bitcoin mining is for hobbyists.

However as a hobbyist, you can turn just about any computer into a “mining rig.” For what it’s worth, Kane says that setting up a small mining rig is a great way to get some hands-on learning about bitcoin but warns that small rigs are almost never profitable. Source

With the recent difficulty increases (typically ~30% every ~14 days), you will likely never make your money back on these. Even buyers of the heavy-duty ASIC mining devices (200-400+ GH/s) are looking at zero to negative profits by the time of delivery.

Almost all of the mining calculators out there assume that the difficulty will remain constant for more than 14 days. This is flat out wishful thinking. Assume your XBT generation will go down by 30% every 14 or so days and you have a more approximate estimation. Bitcoin difficulty is continuing to climb. As of Nov 5th 2013 difficulty was 510,929,738 and forecast to hit 657,648,393 13 days later. Difficulty == bad news for mining hardware. Well at the time of this post Feb 5th 2014, according to BitcoinDifficulty.com, it is currently 2,193,847,870 with the next difficulty (estimate): 2,616,136,759 (+19%).

So in conclusion: if you want to learn more about Bitcoin, have something interesting to talk about with people and support the network, then mining is a hobby, a past time and a conversation piece. If you’re trying to make money, Bitcoin mining is hardly profitable at all for the average miner.

Is Gold and Silver Still a Good Investment?

Precious metals have always been a safe haven for investing in high inflationary times. Historically speaking, a recurring cycle that always seems to repeat itself is periods of high inflation as a precursor to the crash of paper currencies. Those who understand this wealth cycle and position themselves in gold and silver are those who prosper.

Precious metals are assets that will never lose their value. They are not subject to systematic risks as paper money and serve as a hedge against inflation and other threats of devaluation. Cornerstone Asset Metals was established to help guide investors safely in and out of the precious metals market.

The Great Wealth Transfer

Watch Terry Sacka: The Wealth Transfer show on the Christian Television Network discussing the financial and influential decline of the Western world and the simultaneous wealth increase of the East. With the wealth of nations shifting, it’s imperative to understand moving forward how hard tangible assets will allow you to maintain a quality lifestyle.

Visit the Wealth Transfer archive for more episodes.

Learn more about how buying gold and silver today is a smart move for your investment portfolio.

» Contact Cornerstone Asset Metals today to learn more about buying gold and silver as an investment.

» Read our article: Why Silver is Going Up Today?

» Read our article: Why Gold is Going Up Today?

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