Is It Better To Buy Or Generate Bitcoins?
You may have experienced this scenario:
You are interested in bitcoins and have decided to download the bitcoin client and run it on your machine. You have been running it for days but no bitcoins have been generated. You decide to take matters into your own hands, and so you decide to build a faster computer with more CPU power.
The question is, "Is it easier to buy bitcoins, or should I build a better computer that could mine the cryptocurrency faster?"
What should I do? Let's examine the cost of building a really strong computer that is under $2000. I chose the amount of $2000 because it is probably the highest amount a hobbyist would spend, and this article is targeted to the average user.
First, I choose the AMD processor over Intel's because it is a lot cheaper. I need as much CPU speed as possible at an affordable price, so I am going to be focused on multi-core processors. The more cores I can buy the better. AMD has a six core processor available for $290 a piece, and I will need four of them since the motherboard will have four CPU sockets. (AMD also offers 12-core processor but they are out of our price range). The computer will have a total of 24 cores.
How many hashes can I expect with a 24 core machine? I have a quad-core generating 4,300 hashes-per-second, so I am estimating a 24-core machine could mine bitcoins at 25,000 hashes-per-second.
Now, I need some RAM but I don't need that much because I just need to run the bitcoin client. I'll just buy a 2GB stick of RAM for each CPU.
Shopping List From Newegg.com
CPU: $290.00 x 4 = $1160 - AMD Phenom II X6 3.2GHz Six-Core
Motherboard: $444.99 - SUPERMICRO MBD-H8QIi-F-O Quad Six-Core
RAM: $181.98 for 4 sticks of RAM - Kingston HyperX 4GB (2 x 2GB)
Monitor: $99.99 - 17-inch LCD
Tax and Shipping - $100
Total Cost: $1995.94
How many bitcoins can I buy with $2000? As of this writing it is about $0.066 per bitcoin. So I could buy 30,303 bitcoins if I had $2000 laying around.
Now, how long would it take for my newly designed 25,000 hashes-per-second machine to generate 30,303 bitcoins? Using the bitcoin generation calculator available at http://www.alloscomp.com/bitcoin/calculator.php, on average it will take 1 day, 19 hours, and 44 minutes to generate 50 bitcoins. After doing a little arithmetic that means it will take a little over two years to generate 30,303 bitcoins!!! Let's not forget to mention that the difficulty levels seems to be rising over time so it could take much longer than that. In addition, the electricity costs to run a server could add up.
So, it seems like it would be a lot cheaper to buy bitcoins than to generate bitcoins. I would suggest buying from bitcoin4cash.com since he sells bitcoins in bulk. For a review of bitcoin markets, read this link. http://www.bitcoinblogger.com/2010/08/bitcoin-exchange-review-my-experience.html
Just my two cents...I mean my two bitcoins.