This term is defined by experts at The Next Bitcoin as “In practice, and in a simplistic way, the activity consists of keeping a machine turned on to validate the transactions of a decentralized network.”
Is Bitcoin Worth Mining?
In the past, when Bitcoin wasn’t worth what it’s worth today, experts say mining was a profitable business. The computational power that the miner will add to the network today, statically, would be insufficient to extract a block, which is exactly what would make you receive Bitcoin.
These days Bitcoin mining is no longer a business you can do from home. It requires economies of scale and a large amount of capital to be economically viable.
For those who want to join the wave of mining companies, there are companies that carry out the activity and are listed on the stock exchange, such as Hive, listed on the Canadian stock exchange and Marathon, listed on the Nasdaq.
However, every time the subject of mining comes back to the fore, especially in a peak season for cryptocurrencies, the scammers return. “or this reason, people need to investigate the history of companies that are offering promises of gain from Bitcoin mining, in order not to be deceived.
To carry out the operation, first the hardware, the ASCI miner, is needed. It costs, on average, between 10 and 15 thousand dollars. Plus, there is the energy cost of keeping the machine turned on 24 hours a day, seven days a week.
Because of this, mining Bitcoin today is an extremely professionalized activity, unlike what happened in the beginning, when it could be done by any computer without major impediments. Thus, the activity is carried out by people who manage to buy the best possible hardware, who manage to create huge Bitcoin farms and who have access to electricity in abundance and at a competitive price.
A small miner, like the Antminer S19J, costs around US$5017 and has a hashrate of 90TH/S. Several platforms on the internet allow you to calculate the profitability of your mining companies, such as Minestrat, which offers mining solutions for professionals.
According to platform estimates, this same machine has an estimated profitability of US$30.99 per day, excluding electricity costs, which vary by location. With that, it would take about 161 days for the investment in the mining company to be paid.
So, before taking the Bitcoin mining services, check out the Cryptocurrency news about that company.