Insurers' journeys to build a mastery in the IoT usage
How my Bitcoin mining rig investment paid off despite risks
1. Describe a time you took a great
risk. What was the outcome?
Bitcoin mining and trading
2. What did I do?
• Invested 1000EUR on a bitcoin mining rig in 2011
• A home built computer that is dedicated to mining bitcoins
3. What are bitcoins?
• Virtual currency
• Peer-to-peer payment system
• Developed in 2009 by Satoshi Nakamoto
• Decentralized currency
• High controversy – will it be the coin of the future, or is it a bubble?
4. What does this computer do?
• Computer is linked to the bitcoin system
• Constantly attempting to solve ‘blocks’
• These blocks get increasingly difficult as time progresses
-Therefore you partner up with other miners in order to ‘pool’ power
• When a block is solved, bitcoins are rewarded to the miners
-Difficulty is automatically calculated so a specific number of bitcoins are
released every X hours
• This is how bitcoins are ‘created’
• It ensures there is no explosion of bitcoins – hence a drop in value
5. Why did I do this?
• Bitcoin seemed like a very promising idea in 2011
-Huge potential for profit
-Whole concept of a decentralised currency was interesting
-Wanted to be a part of it
• I had always wanted to build my own computer
-Opportunity to learn
-Useful to know how a computer works
6. Why is it a risk?
• Relatively huge initial investment (Most of my money!)
• Bitcoin could just disappear (no one was using it)
• The value of the bitcoin was low (around 0.4EUR per bitcoin)
• Computer is heavily built for Bitcoin mining
-Not many other uses (Huge graphic power low CPU/RAM)
7. What was the outcome?
• Bitcoin value boomed in late(ish) 2013
Bitcoin value ($) over time
8. What was the outcome?
• Bitcoin value boomed in late(ish) 2013
• Since I mined my first bitcoin I decided to keep hold of them
• Once the value started booming I decided to sell ¼ of whatever I mined each month
• When the value reached around 700EUR I decided to sell all my bitcoins
-This exceeded my initial 1000EUR investment by a substantial amount
• With the bitcoins I currently mine I can cover my social expenses
IT WAS WORTH IT AFTER ALL!
• Popularity of bitcoins also rose, with many online stores accepting it as payment and
substantial amounts of media coverage.
9. Smooth sailing? - No
Many bumps:
• Mtgox and other major bitcoin trading sites closing down
-Value spiked down
• Many, many, many hacks to the bitcoin system and to pooling websites
• Hackings to my personal wallet
• Invention of ASIC systems, dedicated bitcoin miners
(Faster and less power consumption than my mining rig) – useless for bitcoins now!
• Switched to mining litecoins, alternative cryptocurrency – similar income
10. Was it worth it? Yeah!
• Learnt a lot about computers
• Learnt a lot about trading
• Made some money!
• Have a brand new fully functioning expensive computer (essentially for free!)
• Was part of the bitcoin movement – helped develop bitcoins!