Is Bitcoin mining profitable ?
With the skyrocketing values of Bitcoins and other cryptocurrencies in the recent times, people have indulged in Bitcoin mining more than ever. At one point of time the value of Bitcoin rose above $20,000 and so are the values of other cryptocurrencies.
Buying Bitcoins through exchange like Coinbase is not a tough job. On these sites, even fractions of a bitcon are also available for you to buy. But there are some who are more interested in bitcoin mining. But is it really necessary to go through all the heavy work when you can just buy them online ? The real question that arises here is which one is more profitable.
How much cost young need to put in to start up the mining ?
Mining cryptocurrency requires no brainer or someone highly intellectual or computer nerd. One is just required to set up a computer which can solve highly complex maths problems and get a bitcoin or a fraction of bitcoin as reward in return. When the first cryptocurrencies were invented the process was much more easier. It could be done with whatever computing power was available at home.
Today with increasing competition things have become way more complex. The rewards with bitcoin is halved every four years. High technical senior bitcoin miners have created huge arrays in the process to keep the younger miners from solving the problems, reducing their profits. For this reason some are shifting from bitcoin mining to other cryptocurrency mininigs, like ether, z-cash, etc. Though all of these have very minimal value in US dollars, there is a possibility to mine these and convert it fractions of Bitcoins and then earn from it.
No matter what you are mining the set up cost for mining is huge. The right equipment is generally costly and the other equipments like graphics card just adds up to the cost. Another thing necessary is quite a lot of power for the processing. During a research it is found out that the electricity cost of mining one Bitcoin rounds upto $3000 that too in the cheapest state. Therefore whatever you do, even with other cryptocurrencies, it takes weeks or months to earn back the inital money you invested, and then comes the profit.
This is an alternative if you are reluctant on spending a lot of money on building a crypto mining rig. Cloud mining lets you purchase time on other people’s gig. You must have heard about companies like Genesis and HashFlare. They are such cloud mining companies who provide you gig based on your hash rate. If you can afford to buy higher hash rate, you can receive more coins.
Bitcoin mining is a lot of effort without promised profits. Some might get lucky while others invest on the huge set up only to find out the prices of cryptocurrencies dropping. At the end, it’s your decision to make if Bitcoins are worth the money and effort.