Making Money With Bitcoin

I got on the cryptocurrency train back in 2013 when I converted an old gaming PC into a mining rig.

I mined various coins and sold them off almost as fast as I generated them.

Buying Bitcoin directly back then was quite difficult. I eventually found someone locally who would sell me Bitcoin if I paid with a credit card. However, he charged a 5% “administration” fee.

That seemed expensive at the time. But then, Bitcoin was selling in the $100-$400 range.

At the end of 2013, it shot up to $1,200 in value. A 3X to 12X gain on my investment (depending on when I bought Bitcoin).

You only know when a price peak has been reached with hindsight. I, and many others thought that Bitcoin was “going to the Moon” as they say.

It wasn’t to be, and in early 2014, the price of Bitcoin crashed back down to the $400-$500 range.

It still meant I was slightly ahead on my investment.

But the price crash meant mining was no longer profitable given the price of electricity where I live. So I switched off my mining rig.

Had I known then what I know now, I would have left it running, eaten the energy cost and profited big time in the last couple of months.

Anyone who follows the Bitcoin market knows that it’s very volatile.

That said, many people have become very wealthy on the back of cryptocurrency.

I, however, am not one of them.

During the price crash in 2014, I sold off a lot of my Bitcoin before it was worth less than I paid for it.

I didn’t buy back in when the price dropped to about $200 per coin either having been almost burned in the December 2013 price crash.

Bitcoin Price Crash 2013

I did get involved with a company called LTC Gear where you bought mining packages. It had been running for months and had a great reputation.

Back then, the number of coins rewarded for the successful mathematical number crunching that validated Bitcoin transactions was much larger than today. I accumulated almost 10 Bitcoins in LTC Gear.

And then, things started to go wrong. Payouts were delayed. Then payouts stopped completely. Customers went ballistic and after some months, the LTC Gear owner said he’d release the earned coins if he was paid a substantial percentage of what was owed to a customer, by that customer.

I didn’t fall for that ruse. Throwing good Bitcoin after bad seemed a fool’s errand, so I lost those 10 Bitcoin.

After that fiasco, I didn’t want anything more to do with Bitcoin for the next two and a half years.

Then around late 2016, I started buying Bitcoin again. The price had been rising slowly but steadily and I was buying when Bitcoin was $800-900.

Then again then price crashed. This time, however, I didn’t panic sell.

Panic Selling

I bided my time and simply waited for the price of Bitcoin to rise again.

If you look at a price chart for Bitcoin from it’s creation in January 2009 to now, you’ll see a pattern. It goes through long periods where the price bobs about in a small way. Then the price starts to increase exponentially to a point where it crashes back down.

Bitcoin Price 2009-2017

But, over time, the trend in price is consistently upwards.

I only have about 2 Bitcoin now given the price at which I started buying back in.

At Bitcoin’s recent price peak in December 2017, my coins were worth 20 times what I paid for them.

I thought that Bitcoin was going to repeat what had happened in late 2013 with another price crash but I didn’t follow my instinct. So I didn’t sell.

Bitcoin then did repeat what happened in December 2013 by losing almost 50% of its former value.

So, right now, my Bitcoins are worth about 10x what I paid for them.

Making My Bitcoin Work For Me

Bitcoin doesn’t earn any interest while sitting in a wallet.

Rather than just letting my coins ride the price roller-coaster, I wanted to put it to work so that it would earn interest.

So I joined two companies that give a return on your capital – USI-Tech and Power Mining Pool. I already compared these two company’s offerings in this post on my cryptocurrency site, so I won’t reiterate that here.

Both sell mining packages that you pay for in Bitcoin. Then those mining packages pay out about 1% of your capital each day.

USI-Tech pays out in Bitcoin every business day (not weekends) whereas Power Mining Pool pays out in Euros every day. When you withdraw from it, the Euros are converted to Bitcoin at that day’s exchange rate.

Both USI-Tech’s and Power Mining Pool’s packages complete when they pay out 140% (40% profit) on your initial purchase.

USI-Tech

I prefer USI-Tech’s setup for the reasons I outline in my comparison article. I’m much more invested in it than in Power Mining Pool for that reason.

But I don’t like having all my eggs in one basket just in case any one company gets into difficulties or goes bust.

I bought 55 mining packages in USI-Tech with some of my Bitcoin and then used the accumulated Bitcoin earnings there to buy an additional 10 packages to compound my earnings.

My plan is to continue to buy additional packages with my earnings until my earnings each day will cover the purchase of 4 additional packages. So I’ll need about 400 mining packages.

At that point, I’ll only buy 3 additional mining packages and withdraw the remaining Bitcoin each day. That will give me a daily income. How much will depend on the Bitcoin price at that time.

To achieve that within 100 business days from now, I’d need to buy an additional 88 mining packages today (which would cost 0.5 Bitcoin at today’s rate).

Earnings should then become self-sustaining.

Assuming Bitcoin stays around $10,000 / €8,200 per coin, that strategy would provide me with about $56 / €46 per day.

There’s a lot of latitude in those estimates. It all depends on the price of Bitcoin.

Buying 152 mining packages outright would cost 0.8664 Bitcoin today (Jan. 30th). Not an insignificant investment.

If you wanted to try something similar, you could work your way up to owning 400 packages.

If you’re good at recruiting people, both USI-Tech and Power Mining Pool have referral programs which pay a commission on what your referrals spend. So recruiting people would accelerate your results.

Other Bitcoin Ventures

iCoinPro Logo

I’m also involved in a couple of other Bitcoin ventures. iCoinPro provides training on cryptocurrencies. It also provides some cryptocurrency trading strategies that are simple to follow.

Using those strategies, I’ve almost doubled the Bitcoin I decided to trade with.

Membership is $39.95 per month.

Bitty Cash is another Bitcoin system for recruiting members and getting paid for confirmed members. So it’s a good program for those who are good at recruiting.

Conclusion

Bitcoin's Future

I do believe there’s a bright future for Bitcoin and other cryptocurrencies. It is a roller-coaster price-wise but, as I mentioned, the price has been trending upwards since Bitcoin’s inception in 2009.

While some pundits do see value in the underlying blockchain technology, they see no inherent value in Bitcoin itself and expect it’s value to drop to zero.

Others see value in the fact that there will only ever be 21 million Bitcoins and so it can never be devalued by the creation of additional coins, unlike the Dollar where currency is created on demand, devaluing the currency currently in existence.

These optimistic pundits see the price of Bitcoin rising to $100,000 by 2020. Others, like John McAfee and James Altucher see Bitcoin being worth $1,000,000 by the end of 2020!

Seems hugely optimistic to me. But what do I know? I certainly didn’t predict Bitcoin rising from $1,000 per coin to $20,000 per coin in 2017.

I’ve been willing to risk some money on this whole cryptocurrency adventure. I’ve had losses and gains and overall am still significantly in profit for the money I’ve invested into Bitcoin.

So I’m sticking with cryptocurrency. I’m either going to the Moon or going down in flames. Only time will tell.

But it is exciting!



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