Are Crypto Currencies Worth Mining?
The BTC mining community uses 57 quintillion hashes per second combined mining rate to produce new bitcoins. It is a huge computational power and hundreds of thousands rigs operating all across the globe. Many experts believe that crypto currencies has never been harder before! With such a massive competition, is it worth it to get into mining right now?
- Countless factors to consider
- Should you try mining?
Any business enterprise is risky. You should consider a crypto currency mining operation a business endeavor with all its caveats. By no means, you can guarantee yourself a profit immediately. However, if you can sustain some losses in the long run, you will be massively rewarded. The math here is simple:
- A single bitcoin can be sold for about $9000 on the free market
- The reward for discovering a block is 12.5BTC which translates to $112 500
- The estimated cost of bitcoin production is roughly $5000 per BTC
So, the math checks out. Why literally everyone is still not on the bandwagon? Why wouldn’t every miner be a millionaire by now? There are several important risks to consider.
- You can spend months without receiving a reward. It takes a very long time to discover a unique block and receive your reward. With massive power consumption of mining equipment, you can simply run out of money to keep going. Having a capital to fall back on is crucial. However, many beginners do not know this and fail.
- Initial investments used to be too high. It is not as simple as running a program on your PC. It used to be a decade ago. Today, you need massive computational resources to start your mining operation. Purchasing a powerful rig can be very expensive. A good ASIC rig can cost up to $10 000 or even more depending on the quality of the components. There is a second-hand market that somewhat reduced the riskiness of this particular factor.
- You have to be somewhat tech savvy. While modern equipment does not require you to be a technological genius, you will still need some tech knowledge to set up and maintain your equipment. It takes some effort and dedication to become a successful miner. These are two qualities that many people simply lack.
BTC numbers are hard to grasp. 57 quintillion is a number beyond practical use for the overwhelming majority of people. However, bitcoin is not the only Crypto Currencies out there. You can also mine Ethereum or Litecoin. The good thing is that you can use the equipment and sometimes similar software to mine them. Prices or both ETH and LTC are lower compared to BTC, but it is less challenging to mine them as well. On the other hand, you can try your luck mining crypto currencies that did not receive the same amount of attention as the big three.
Mining can be a good side gig or a source of passive income for those who already secured some financial stability. It is hard to recommend mining to people who do not have enough resources to run a mining operation and paying their bills simultaneously. If you can, it is a good time to consider joining the mining community!