Why I don't think bitcoin mining is a good idea

[rogerver]

People ask me all the time about what I think about Bitcoin mining.
Rather than repeat myself over and over, I've decided to start this thread so I can link them to it.

I actually don’t think mining is a good investment for the following reasons:

1. Everyone can see the price of bitcoin.
2. Everyone can see the mining difficulty.
3. Everyone can see the price of electricity.
4. Everyone has access to similar mining hardware.

For these reasons, unless you have an advantage with points 3 or 4, I think it will always be a race to the bottom, and very hard to actually earn any money from bitcoin mining.

This can also be compared to gold mining.
1. Everyone knows the price of gold.
2. Everyone knows that there is gold in the mountains, but it is very difficult to get it out.
3. Because everyone knows how difficult it is, they realize that their time is better spent doing other things to earn money, and buying gold with that money.

Bitcoin mining can be a fun, educational, and emotionally rewarding hobby, but I think it will be very difficult to earn money long term from Bitcoin mining.

If you want gold, buy it.
If you want bitcoin, buy it.
If you want to earn money, do something other than gold or bitcoin mining.


Agree? Disagree? Tell me why.

[BitcoinGuides]

Definitely agree. I always tell people that mining can be a fun project but you won't make money from it.

Occasionally you can make money mining altcoin launches but it isn't reliable income and it is more efficient to just rent a miner for those periods.

[Chris]

personally who asks me about mining i refer them to buy bitcoins than to invest in mining.

[BitcoinXio]

I completely agree. It makes sense from a business standpoint. But if profitability is not a concern, it might just be fun to learn how to do it even if you lose some money during the process (as a hobby or a learning experience).