Mine or Not to Mine, That is the Question
The situation of the crypto world is undergoing extreme changes, and users are making deep analysis of all the history in order to make some conscious steps in risky investments. After an unprecedented boom in 2017 and following it the Great crypto crash, majority of cyberpunks, cryptographers and certainly hackers are tracking the development of digital technologies with greater caution. The secret of getting ahead is getting started, but is it worth starting today in 2020?
Mining in 2020
For now, the situation with the cryptocurrencies leaves much to be desired. Crypto mining is more complex than ever before. Since it has become a very competitive activity, the bigger number of computers increases the complexity of the process. A record number of Bitcoin mining devices has already been fixed. The price of equipment has increased while the price of crypto coins is suffering reduction.
Despite certain issues on the high manufacturing level, mining still stays profitable with specialized and high-powered machinery. Smaller miners give way to professional mining farms specialized in industrial mining. What concerns individual crypto fans, mining is a complicated type of business, especially for those who are mining alone. People are often mistaken assuming that it is easy to install a farm somewhere in the home place and what until it brings some profit.
Individual mining in 2020
The very first thing to take into account is the equipment itself and electricity expenses. Having done certain calculations and considering Bitcoin’s shifting winds (any kind of calculations should be regarded skeptically), it gets clear that mining won’t be profitable at a small scale. The exceptions cover only the usage of free or really cheap electricity.
Moreover, it is not possible to leave the process without control. Mining equipment in 2020 requires maintenance and checkups. Any time something can go wrong, these can be hardware failures, power outrages or network disconnections. There is no time to be lost in this deal and a user should be aware of all the necessary services for his equipment.In any case, it is not too late to mine cryptocurrency. The main criteria is the level of risk, which is impossible to predict.
Mining Bitcoin or other cryptos
Then comes the question, what to mine? Ethereum requires less expense on mining and has quite a profitable rate. Moreover, it has a unique place in the crypto space as its protocols are the basis of the majority of tokens and companies are using Ethereum as a building block. Ethereum fans expect no breaks in the nearest future for Ethereum and predict a double price to the end of the current year.
On the other hand, Bitcoin’s predictions by its followers are also full of optimism. Mining Bitcoin in 2020 can be compared to mining gold; there might not be a person who is against trying such an experience. Ethereum runs alongside Bitcoin, but can’t take the leading place by no means. What concerns other cryptocurrencies, many altcoins have insufficient trading volume and it complicates the process of cashing out the profit. Notwithstanding, choosing the correct altcoins to mine, one may still make profits.
To conclude, the answer to the question about mining profitability requires several items concerning the very miner’s case. A web-based profitability calculator will help to run a cost-benefit analysis. It can show users their breakeven point and to determine its long awaited period. If the initial capital for the hardware is collected and all the estimation is properly done, it is only unshakable determination that is needed to move forward. And then time will show.