Bank or Bitcoin Mining?

farm-2852024_960_720Every day there is a new Bitcoin Mining opportunity and people who tell you how much money you can make from Bitcoin Mining, but the question is does it work?

I have reviewed two major Bitcoin mining companies in the recent month and I have come to one simple conclusion – it would have been better to leave your money in the bank or in Bitcoin itself.

What is the problem? Simple really the people who are trying to get you to join these schemes are either one of three things: 1) Unable to use a calculator 2) Recruiting and they are making money from joining other people to the system by way of referral and team bonuses or 3) Dishonest.

Was it always like this? No, when these companies started the members were making reasonable returns and almost doubling their money in a year and a half. Then the companies started to become unprofitable and they needed to lower their returns (this is caused mainly by equipment becoming old and redundant) and the company not been able to invest in new machinery to keep up with the growing number of members.

Even though the Bitcoin price increased in the last month and the volume of Blockchain transactions increased, they were still unable to show enough profit and again they needed to decrease the earnings. Will these companies ever recover or does the business model only work when the price of Bitcoin is in the region of $20,000? We may never know.

Knowing that people who are trying to recruit you, don’t know how to use a calculator and they are trying to make money from you. With this information, you should get all the answers first and don’t just believe what people tell you. Be careful it is your hard earned money we are talking about here.

In summary, both of the Bitcoin Mining systems, are not outperforming the banks currently, so it may be time to look at alternatives and make sure you can use a calculator before proceeding.


About RichSimmondsZA

Retired but still Disruptive
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