Novice Traders Rush To Mining… Is It Worth It?

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Novice Traders Rush To Mining… Is It Worth It?

There is no doubt that the early days of mining especially the Bitcoin mining is described as the gold rush time.

The invention of bitcoin which is a peer-to-peer electronic cash system has indeed opened for us all, a new frontier for maximization of the profits margins. Many had strong interests in this endeavor right from the beginning, people like cypherpunks, technically-minded libertarians, cryptographers, and assorted hackers, were so quick and smart to first stake their claims. Today Bitcoins have indeed developed from humble early enthusiasts into a cottage industry and a more specialized venture on par with industries. So the easy money was scooped out then, and the remaining was buried under the cryptographic equivalent of tens of thousands tons of hard rock ironically.

Bitcoin mining USB devices in a row with small fans.


 

It only those individuals that have free access to highly powered, sophisticated, specialized machinery that can extract Bitcoins these days. Though, mining is still technically possible and achievable for whoever wants to do it but certainly not for everyone because those with under-powered setups will find out money is spent on electricity than it is achieved by mining.

It is worthy of note that mining will not be worth the salt (in this case electric, wear out on the rig, extra heat in your house) if it is maintained at small scale level because there must be free access to electricity at a fairly low price. There have been tremendous investments in mining hardware early this year with a collective hash rate of about 4 Exahash.

 

The truth is the future profitability of mining is not certain, and this is due to the dynamic nature of difficulty modifier and that of BTC price. Though, the profit might be looking so great at the moment review the price of $1150, coupled with it appears that a home miner realizes only $1348 annually… after factoring in electric, internet, cooling, etc it is clearly not profitable on a small scale.

Sometimes, Bitcoin hash rate goes up just as a big new mining pool comes online. This is what happened in 2016. This led to an awkward situation in 2016 when some big, corporate miners immersed themselves in threatened-profit margins conditions.

The Swedish Bitcoin mining firm called KnCMiner declared being bankrupt in 2016 because of this, though the home miners have no good chances to compete effectively in such a challenging environment where there is no free access to electricity and even if available, it is highly priced barrier to entry.

The importance of equipment cannot be over stated, and you must be aware of this fact if you want to order any of this equipment. try as much as possible to take cognizance of the following things that will also add to your TCO or total cost of ownership:

• Hardware failures
• Power outages
• Network disconnections
• Price crashes

In conclusion, an average home miner these days will struggle and never realize your investment and you have got to go many extra miles to make a profit or to even recover the cost of mining hardware and power supply through electricity. To make a profit in mining these days is highly unlikely considering the present situations of things. This could at any point change, which keeps the market interesting for sure.

 

 

BTC:

1DF47PEyPfDNdFMzpmdJKQ47fdBVStyoSX

LTC:

LLi5f7GeWvw3HKARUcM4NKP8Q8YFYkSKA3

ETH:

0x8D43e1D8bFa45E1ADa728343Cc53e513Ec8235c9

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