JOHANNESBURG Our article this week on answering readers burning questions on Bitcoin attracted a lot of interest and more questions which will be posted in a future article. But one readers letter to me particularly caught my attention. While my Dummies guide to Bitcoin article covered a lot of areas, I danced over the mining of crypto. However, this is a world where you can make money if youre willing to invest the capital in powerful cryptocurrency mining hardware. Andrew Crawford, in the below mailbox piece, outlines how he is on course to earn R50,000 this month from mining a cryptocurrency called Dash. Among the over 900 estimated cryptocurrencies in the world today, Dash like Bitcoin also works on a blockchain, but it touts havingadvanced capabilities such as instant and private transactions and decentralised governance. As Andrew outlines below, the price of Dash has shot up from around $94 to $300, dramatically reducing the period on his expected return on investment on a $5,800 Baikal 1.2 Gh Dash mining kit much shorter. So, fast is the pace of development in this space that this particular Baikal kit is now selling for $2,200 amid upgraded models. But this gives one an idea of whats involved. Gareth van Zyl <\/p>\n
By Andrew Crawford <\/p>\n
Hi Gareth,I enjoyed your article today. <\/p>\n
Read more:Dummies guide to Bitcoin: BizNews readers burning questions answered <\/p>\n
I first became aware of Bitcoin at a CFA investment conference in 2015. I then learnt its more about decentralised blockchain technology and Bitcoin is just the oldest and most significant currency used in blockchains (open source ledgers). <\/p>\n
You glossed over mining as a way to get a toe in the water? Mining is just providing processing capacity to blockchain networks when you strip out the crypto lingo of mining. After researching the topic, I thought it was the least risky approach. What am I missing? <\/p>\n<\/p>\n
This year I decided to initially buy a Baikal 1.2 Gh Dash mine(price is now $2 200 but it previously cost $5 800). Cryptocurrency Dash was at $94 and the Rand exchange rate $13. Dash hit $300 in the last week so my 6 month projected Return on Investment (RoI) is now considerably shorter. At 300 watts the electricity is less than R300 pm for this Baikal processor. In a world where a share with a PE of 14 and dividend yield of 4% is good this RoI seems too good to be true. However, its working?!? Last week I also took delivery of 5 Antminer L3+ mines. Again the projected payouts are beating projections and these should earn me $3,780 this month (R50,000). My costs are R5,250 pm. Im earning in $ and paying costs in Rands. <\/p>\n
Of course the price you pay to import these processors and their efficiency with regard toelectricity is key. I found the guys at Browntoast.co.za to be the most cost effective and efficient suppliers, and they help pick the most efficient processors. Setting up a mine \/ processor is beyond the average person but I think this was the least risky way for me to get into the unstoppable blockchain technology developments. <\/p>\n
Crypto currency prices are highly volatile with all the signs of a bubble. Who knows? Getting into the game by providing processing power to blockchain networks seems to be a more substantial way to earn your crypto currency rather than speculating on the price going up? It also avoids the risk of the various cloud mining pyramid schemes being sold. <\/p>\n
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Mailbox: 'How I earn R50k per month by mining cryptocurrency' - BizNews<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" JOHANNESBURG Our article this week on answering readers burning questions on Bitcoin attracted a lot of interest and more questions which will be posted in a future article. But one readers letter to me particularly caught my attention Continue reading