– Hi, it's Paris from Epic Review Guys updating you today on our bitcoin mining experiment We've actually got our first bitcoin payout

I'll show you that in our bitcoin wallet, but it makes me realize we may not ever even pay off this little bitcoin miner ♫ Epic Review Guys ♫ To start with, here's our initial payout in bitcoins We finally earned something, 00147 bitcoins, which at today's exchange rate is worth about $865

And here, again, is our little bitcoin miner, an AntMiner that mines at two gigahash per second We paid $69 for this So if we made this much in two months of mining, you would think that this will eventually get paid off Might take a while, but it should eventually happen, and then we should start actually creating money, but there's a variable in the equation that messes all that up, and it's called the difficulty level What that is is that bitcoin is designed to release coins over a certain number of years, and they're supposed to have blocks of 25 coins, these are virtual coins, released about every 10 minutes, but there has to be an adjustment factor built in

If twice as many people suddenly start mining bitcoins, well, then they'd be getting that block of bitcoins every five minutes, and if more people mine, every two minutes It would mess up the system, so there's a difficulty factor built in that, as more people mine, as more resources are thrown into mining, whether more total people mining or the people who are mining start buying higher powered hardware that can process the calculations more quickly and mine those bitcoins faster, every two weeks there's an adjustment that takes place, adjustment to the difficulty level They look at the total resources being put towards the bitcoin mining, and then they make it, usually, more difficult Now, we started mining January 21st, and so according to the online calculator where you put in how fast your mining device is, how much electricity costs where you are, and the various information, it will calculate how long until you pay back your original device, how long until you're making money, but it doesn't put in the difficulty factor because they don't know what that's going to be Well, in the first two adjustments after we started mining, the difficulty level went up by a total of 30%

Even though it showed that I had earned this little portion of bitcoin, so I should be closer to that $40 payout, it was showing it was still gonna be five months, and then another two week's period went by I earned more, but it's still showing further out before I would reach that point So what's happening is the breakeven point keeps moving further out So even though I am earning bitcoin, and it will continue to earn it, it's evermore slowly It's one of those nightmares where you're running down the hall and you can see the end, but the faster you go, the more the door slides away

Now, the reason I actually did get the little payout that I got, the $865 worth, is because this system actually stopped mining about 10 days ago I didn't know at first There was a Windows update, one of those mandatory updates This does need to be on the Internet to get the bitcoin data to do the mining, so it went and got the update, shut down the computer, restarted it, and some change that was made in that update messed up the system, and so now it won't mine without me erasing the whole thing and going through all the steps again, which I'll do

It does show that the bitcoin mining devices, though, are not just set it and forget it You do have to monitor them, or it could go down for a few days, and you wouldn't have mined at all in that period of time, and you wouldn't realize it Now, there are three ways that I still could come out ahead and make money mining bitcoins I don't have control over any of them, but here's the secret to making money on bitcoin Number one, if a whole bunch of people who are currently mining bitcoin decided it's not worth it, they shut their machines down, took away all those resources from mining, then the difficulty level would go down, and my breakeven point would start getting closer instead of further away

That hasn't happened so far The other thing is the value of bitcoin could go up 10 times So instead of wherever it is now, six, $700, at that rate, what I've earned so far is worth $865, but at the value of, the bitcoin goes up by a factor of 10, now one bitcoin is worth six or $7,000 My $8

65 suddenly becomes $86 I consider that to be unlikely, but, again, I have no control over what's gonna happen The price of the bitcoin could also drop in half, and my $8 could become $4 The last way to make money in this whole digital currency mining field, and I think this is the only way people really do make money with this is if you are the first person when a big advancement in technology comes out that allows a lot more mining power all of a sudden If you can be one of the first people that gets one of those devices and sets it to mining, and you're ahead of most other people, you have a disproportionate advantage

Basically, the difficulty level doesn't yet reflect how powerful your mining machine is Now, when more people buy them, they get more widespread, then the difficulty level will go up, but you have that period of a month, two months, when you're one of the first people to get that much more powerful hardware You then can make your money in that first couple months After that, you're back to the same situation of the goal moving farther away, but if you've already made your $100,000, then you don't care so much Now, based on my reading and research into the subject, I don't think there's going to be another giant technological advancement in bitcoin mining just because it's come so far so fast, and where it can go from here is basically how computers get faster, a little bit more each year but no giant jumps

We're sort of past that The technology's more mature But there is this field similar to bitcoin, which is scrypt coin It's still digital currency, but it's even more Wild West than the bitcoin, and the prices fluctuate, and it's all a pretty big gamble Well, up until recently, that hasn't had a dedicated machine like this little thing that can very powerfully, quickly mine those currencies

For those, you basically, still we're doing it on your computer on your video card, but somebody found a way to create a dedicated device to do it much, much faster than a computer I was just looking online that a few hours ago KnCMiner, they just released one of the first devices like this that will mine those scrypt coins They sold $2 million worth of them in four hours because people in the know know If you can be the first kid on the grid that has all that mining power, you're gonna have a big advantage until the difficulty level moves up to reflect that added mining resource So that's when you make your money, but it's a gamble

Let's see, the machines start at $10,000 Now, if you have $10,000 lying around, I'll put a link below this video to this news story about the KnCMiner if you'd like to give it a try I'm sure some people are going to come away from this with a lot of money, but, then again, when you go to buy a lottery ticket, you can also be sure some people are probably going to come away from this with a lot of money, but not very many people, and most of us are just putting our money in to make somebody else rich ♫ Shopping is easy when you know what to buy ♫ At Epic Review Guys we give stuff a try ♫ What does the fox buy ♫ Nobody knows ♫ But before he goes shopping ♫ He watches our videos ♫