Bitcoin and cryptocurrency are on everyone’s mouth these days. It’s a very fast-growing industry and people have begun to realize its actual potential. That’s why we see its transactions going higher and higher and so is the mining.
To give you a little background of the story first, whoever created or develop bitcoin left a lot of room for bitcoin mining. Then, came professional miners who would do complex maths and calculations to mine these valuable coins. It’s when these coins are mined, they go into trading.
There are various platforms where you can begin with your mining work. All it would take is a computer system in a good shape and a fast internet connection. Now, once you are all set up you have to begin the process which could involve solving complex math problems and for every correct step, you will be rewarded with a fraction of a coin. It’s a time-consuming process, but here without spending any money you will become the owner of a bitcoin or any other cryptocurrency. To know more about bitcoin visit Bitcoin Circuit Platform.
If we talk about a little history, earlier this was relatively easy and all the miners would earn a good number through their efforts. However, with time more and more people have gotten into this industry and hence the complicity and competency have increased considerably. Now, it’s very difficult to earn a good amount of bitcoin with mining.
This is because the reward for mining has been reduced since the competition is very high. Then another setback for new miners is the presence of professional and experienced miners in the industry. These big players have setup complex and huge arrays of mining systems which had made it difficult for novice players to get anything out of it.
What are the options?
So, they are left with three options: the one involves mining with a pool which of course comes at a cost as you have to pay their fees, the other option is to mine as an individual which these days is not profitable and the last option is to mine any other altcoin and then exchange it for bitcoin later. The third option will be a very hectic and tedious process as it will take you huge chunks of altcoins to exchange it with a fraction of bitcoin.
No matter, what you decide to go for you will still need to incur some costs to set up your account and pay for the basic things like graphic cards, software if you are using any and an advanced computer system, Wi-Fi bills, and if we may also calculate your time and energy consumed in terms of money.
The cost of power is one key element that plays a significant pulling this whole process off. It incurs a hefty amount of power bills to mine a single bitcoin. So, if you are living in a state where the power cost is not that high, it still is reasonable for you to go for it, but with a huge power cost per unit you will only end up spending more than you make.
Then, there is this other option called cloud mining
Under this system, you pay for using someone else’s rig and they charge you based on the hash rate. If you pay a higher hash rate you will receive more coins but of course, it’s also costing you more. This hash rate can be paid on monthly basis or you can also get into a yearlong contract depending on your situation.
But the profits aren’t guaranteed on this one as it all depends on how much you mine and it may take you years to reach a significant number. But the good part is you won’t have to worry about things like power costs and other stuff because all of that will be taken care of by the rigs.
All in all, mining is a risky bet and you have to be very calculative and practical before getting into it. With huge power consumption costs, you might end up spending more than you earn, and if not that then you might end up not making enough. So, all of this only makes sense if you are good at it and also the price of bitcoin is high enough to reward your profitable in the end.