Bitcoin Mining – An (Un)surprising Resurgence?
Cryptocurrencies have quickly gone from a strange and exciting curiosity to an attractive type of asset that everyone hears about. Looking at the rapid growth of Bitcoin and other popular coins, many sadly regret that they did not take crypto seriously enough earlier. However, the current correction in the market opens the door for all investors, and one of the best ways to make money on cryptocurrency is mining.
Mining is the process of ensuring the network’s capacity of some cryptocurrencies, which requires significant resources in the form of computing power. Everyone who wants to conduct a transaction with a cryptocurrency (for example, transfer from wallet to wallet) pays the miner a certain amount of crypto for the transaction. For the system to function, someone needs to pack new transactions into blocks and attach them to the blockchain.
The profit of miners depends on three components:
- The number of received coins. This important indicator of a miner’s earnings is based on the equipment’s power, the difficulty of mining, and the amount of the reward.
- Cryptocurrency prices. The market forms the prices for cryptocurrencies. The miners cannot influence them in any way. Unless, of course, the miner of digital assets is the owner of many coins who wished to sell them at a time.
- Cost of equipment and associated costs (electricity, equipment maintenance, Internet fees, etc.).
The value of a cryptocurrency is closely related to the economic model, whether it uses cash, virtual money, or gold. The greater the demand for a particular offer, the higher its value. Since Bitcoin BTC/USD is the most popular coin on the network, its price is one of the highest. An increase in the hash rate also means an increase in mining, and therefore both the difficulty of earning and the cost of equipment increase.
According to experts, even if BTC drops to $20,000, mining will still be profitable. The cost of Bitcoin mining for the average miner remains 2-2.5 times lower than the current price of the cryptocurrency.
Moreover, periods of correction are the most convenient for joining the industry. When the decline in cryptocurrency quotes, it becomes possible to purchase mining equipment.
Due to the wild popularity and profitability today, there is no doubt that governments will try to control the production of virtual currency. A great example is China.. However, the crypto industry is easier to block if the mining equipment is powerful. And first of all, this concerns ASIC farms since it is much easier to find them on the network than video cards. Owners of several video cards have nothing to worry about yet since it is challenging to detect such things.
However, how profitable is solo mining on video cards? It is a rhetorical question. In 2022, it isn’t viable or profitable to mine Bitcoin at home. Therefore, a practical way out is the use of cloud mining.
How does cloud mining work? The user rents power from the company (most often, it is a large mining farm). In this case, you do not need to worry about tracking and regulation by the state. The company covers all expenses and difficulties of mining. Most commonly, the work model is next: the user chooses one of several types of contract, based on which he pays a commission to the mining farm and rents the selected amount of power from it. The more power – the better and faster mining. However, you should always be careful when choosing such companies to not fall for scammers.
Cloud mining saves you from any difficulties associated with purchasing, installing, and maintaining equipment. The noise problem in the apartment is also radically solved – it does not exist because there is no physical source. It is enough to pay the rent to receive cryptocurrency in your wallet consistently.
One of the market leaders, GreenHashes, has united technical blockchain experts, top miners, and analysts with one goal – to popularize the mining industry and bring cloud mining to a brand new level. The company increases competition in the internal market by raising the quality bar and attracting many new investors. It aims to enhance the capacity of produced equipment and the growth of cryptocurrencies.
“Let us do the work, while you earn the rewards” – the company’s motto. GreenHashes provides an all-in-one mining solution.
The platform is suitable for both beginners and professional investors. The company moves with the times and provides environmentally-friendly mining using renewable energy sources. The user only needs to select the desired contract (for 2, 4, and 8 months) and pay for it with Bitcoin.
Image sourced from Pixabay
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.