Where can you get Bitcoin? By now, you would have read somewhere that Bitcoin can be obtained through mining. There is no shortcut to making profits through Bitcoin. The same situation happens in Malaysia. In fact, you will not get a fast profit from mining Bitcoin here. After all, Bitcoin mining requires you to have some very expensive equipment. That is only for a start. The cost of investment will grow later, especially cooling or ventilation system.
Where are the Miners?
In a country like Malaysia, you will lose out in competition with the Chinese. In fact, Bitcoin mining in China has grown so big, there is no way you can compete with them. After all, you need to fork out thousands of ringgit to buy one Bitcoin mining machine. Because we are dealing with machines here, you need to constantly upgrade. A large community of Bitcoin miners is now in China. In fact, they are known to have built specially-dedicated factories for this. The premises are used to house thousands of Bitcoin mining machines. After all, they have low-cost electricity there which puts the Chinese at the forefront of Bitcoin mining.
How soon can you mine Bitcoin?
When you use the Bitcoin mining machine, you will incur the cost as you need to pay electricity which goes on for a long duration. When you mine your own Bitcoin, you will only see the returns after a few years. No matter what anyone tells you, there is NO WAY you can see returns within days. After a few years, more powerful Bitcoin mining machines would have been launched. If you are using an older version, chances are you will lose out.
Can you go into Bitcoin Cloud mining?
Cloud mining is a newer concept. How it works is that the mining factories will give you the option to buy into the shares of the profits. Your role is to help in paying for operations and overheads without needing to do the mining yourself. But like any other so-called offshore or third-party investment models, you need to be careful not to fall into some of these proposals that might be a scam. In fact, there have been many such models designed and sold by companies which are actually pyramid scheme models. Among the names that offer good Cloud Mining services include Genesis Mining.
Where to buy Bitcoin Mining Machine
Having understood how it works and what Bitcoin mining is, you would now be aware that this is not a fast-track to profit. In Malaysia, the situation is very much the same as other economics. For starters, you can go to websites like Bitmain to buy the mining equipment. This is a great place to start as you get to enjoy warranty from the seller. Besides that, the Bitcoin Malaysia #1 is another place to go where you can buy mining machines from other Malaysians although you might not enjoy too much coverage from them.
Bitcoin miners in Malaysia
The rule of thumb is to join Bitcoin groups in Malaysia. This is because they are usually quite low profile and is very unlike other forms of investments. Bitcoin mining machines are not easy to maintain. In fact, setting it up takes time and cost. Apart from that, it consumes a lot of electricity, produces heat and can be quite noisy.
What are my ROIs?
Like any other forms of investment particularly in the money market, you need to calculate your ROI or Return on Investment when you mine for Bitcoin. When it first started out, the ROI was extremely attractive standing at 3 months. Since more people have got involved in this, the ROI is now more like half a year to 1.5 years. You need to be aware that you will incur additional costs like electricity and setting-up fees. Other factors that need to be considered include spare parts, rental for space, Bitcoin value and downtime, to name a few.
Does this mean I should not mine for Bitcoin?
Mining for Bitcoin sounds like an interesting option buy given a choice, you should just get them off-hand. This means that you should get your Bitcoin from trading. The easiest and fastest way to get hold of any Bitcoin is to buy them which is quite like how you buy shares and then trading them. Otherwise, you can get Bitcoin by trading where you can accept it as a currency for purchases of products or services.
Other ways to get Bitcoin in Malaysia besides mining
As you know that the best way to get Bitcoin is to buy them, you need to find the right sellers. Using Malaysian Ringgit, you can buy Bitcoin through exchanges like Localbitcoin, Conexy and Remitano. This can be done via bank transfer to the seller of the Bitcoin. This is where you need to select a seller with a good track record before making your purchase. Other names involved in selling Bitcoin in Malaysia includes Coinhako, Luno and XbitAsia.
Important information in Bitcoin Malaysia
Always remember that this is a high-risk investment which you must enter with caution. The value of Bitcoin can be very erratic where you can never be in control. The spike or dip in Bitcoin value can be very drastic. You cannot reverse the transaction which means that once you send the Bitcoin, then you have sent the Bitcoin with no room to reverse the process.
A Bitcoin wallet is a USB- hardware device that you can consider using to store your Bitcoin. Otherwise, you can use online services which offer this option. Inf fact, you should choose a few reputable names to be your online Bitcoin wallet.
The Ultimate Mining Rig GPU
Putting together a mining rig is not difficult as it looks very much like a common Desktop PC although it is a lot heavier duty than that. The thing about any mining rig (in this context, a cryptocurrency rig) is in its GPU or Graphic Processing Unit. The original intention when Bitcoin was released was that it could be mined using the normal CPUs in the everyday computers. However, as time went past, coders realized that more hashing power could be generated using graphics cards.
Hence, they started writing mining software that can utilize the power of graphics cards. Hence, GPUs became the order of the day. This will then be further enhanced through ASICs of Application Specific Integrated Circuits. If designed properly, these could be machines that run on low-cost electricity and are typically data centers that are thermally-regulated.
MPSJ and Malaysian Authorities
In January 2018, the Malaysian authorities carried out a raid on 2 residences used for mining Bitcoin. This is the first of such a raid by the government through MPSJ or Subang Jaya Municipal Council. The reason for the raid was because the council claimed that such operations were deemed ‘illegal’ since the premises did not have business permits to do so. Besides that, the premises were said to be of becoming a fire hazard since it consumed excess electricity. This came about after the bitcoin mining operations caused power fluctuations among the people in the neighborhood. The tenants were very noisy which was a nuisance to the people around the residences.
Mining legal in Malaysia?
Since BNM has declared that cryptocurrencies are not legal tender in the country, mining for Bitcoin would fall into the gray areas. To date, there has not been any absolute answer from the authorities about the legality of mining for Bitcoin. BNM however, has imposed a list of cryptocurrency exchanges that are considered ‘legal’ in Malaysia although it does not endorse this money market here yet.
Is it worth to mine Bitcoins in Malaysia?
If you calculate the ROI of mining Bitcoin in Malaysia, chances are it will not be very profitable. This is because of 2 major reasons:
- You will lose out to the larger communities like China
- The equipment needed for mining is very expensive, often going into thousands of ringgit
And we have not even taken into consideration the rental fees needed to house your machines as well as the electricity bills required to keep them running 24/7. In countries like China, the communities have built premises the size of factories to house a few thousand machines that run throughout the day. Their electricity is cheaper there too.