Is bitcoin mining still profitable in 2019 ?

Discussion in 'General Discussions' started by John, Sep 17, 2019.

  1. John

    John New Member

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    Please share your views over it.
    If I start with Mining what are the requirements and possible solutions ?
     
  2. aiolin

    aiolin New Member

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    Adding to my years of experience and researches i would say that making money mining bitcoin is much more difficult today. Some of the issues contributing to this difficulty include :

    • Hardware prices. The days of mining using a standard CPU or graphic card are gone. As more people have begun mining, the difficulty of solving the puzzles has too increased. ASIC microchips were developed to process the computations faster and have become necessary to succeed at mining today. These chips can cost $3,000 or more and are guaranteed to further increase in cost with each improvement and update.
    • Rise in corporate miners. Hobby miners must now compete with for-profits — and their bigger, better machines — when mining to make a buck.
    • Puzzle difficulty. Bitcoin’s protocol adjusts the computational difficulty of the puzzles to finish a block every 2,016 blocks. The more computational power put toward mining, the more difficult the puzzle.
    • Power costs. Power in the United States is more expensive than it is in other parts of the world, making it further difficult to compete with big-miner money.
    When discussing the feasibility of bitcoin mining, an unexpected variable rears its head: power consumption. This catches a lot of prospective miners off-guard. After all, we rarely consider how much power our electric appliances are consuming. But computing hashes is a very intensive process, pushing whatever processor you’re using to the limit, and to its maximum power consumption. So the question we have to answer is this: will the small reward you earn from bitcoin mining be enough to offset the cost of power consumed?

    If you are in Siberia... Yes.. you can still mine.
     
  3. Astro

    Astro New Member

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    A lot of factors are put in consideration when it comes to mining and I would explain a few.

    The recent bitcoin rally has driven bitcoin mining profits. Profits earned from bitcoin mining have seen a clear rise since the start of April 2019 and hit a near half-a-year high on April 15, 2019.

    I currently mine with a cryptocurrency mining bot that was set-up for me by Maximilian Bykov; a crypto guru i met on a youtube video comment. I subscribe monthly and This bot accrues 0.03btc - 0.05btc daily on the blockchain network. Its great investment compared to my investments on other mining websites which are mostly scams.
     
  4. AdrianG001

    AdrianG001 Active Member Verified

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    The problem with bitcoin mining is the total amount of electricity that it being used to mine.

    Your expenses in buying the hardware as well as your electricity expenses will outweigh your profit by a substantial margin.


    Regards,
    Adrian

     
  5. DarrylG001

    DarrylG001 Member

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    That is probably a more complex question than anticipated. Mining profitability on the Bitcoin blockchain is determined by a number of things:

    · The Bitcoin price - Bitcoin rewards for mining a block are fixed, but income in FIAT grows when Bitcoin prices go up.

    · Mining difficulty of the Bitcoin blockchain - The Bitcoin blockchain has a dynamic mining difficulty to ensure that the block production rate stays more or less around 10 minutes per block to ensure proper propagation of blocks across all nodes globally. When more hashing power joins the network (miners), the mining difficulty goes up. This means that on average, it will take longer to mine a block, meaning operational (electricity) costs are going up.

    · Scalability of the mining operation - Large Bitcoin mining companies can bring their average operational costs per block down because of scalability. Think about renting storage space, paying maintenance staff, some even have access to special industrial electricity deals or tax discounts because they are using so much power (up until recently in Norway for example).

    · Electricity costs of the mining operation - Electricity costs per kWh are one of the largest factors determining the variable costs of a Bitcoin mining operation. These costs vary highly between countries. For example, according to Eurostat, household electricity costs in the first half of 2018 were approximately €0,21 per kWh in Denmark, whereas they were €0,04 in Ukraine. Other regions in South America are allegedly even cheaper.

    Hope this helps.
     

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