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Is Bitcoin mining worth it?
When talking to people about cryptocurrencies, Bitcoin is usually the first one that comes to mind for most – its popularity continues to be unwavering, and even occasional lows do not change that.
Many people around the world see virtual money as the currency of the future, with cryptocurrencies such as Bitcoin paving the way for an alternative monetary system, independent of banks and governments. Not only do cryptocurrencies offer fast transactions and lower costs, it seems the transaction volume has grown considerably in recent years.
Cryptocurrencies are proving increasingly popular, and people are asking questions about how exactly they work. Bitcoins are popular digital coins that are generated in complicated computing processes.
This production is called mining and is similar to gold mining in earlier years, except that instead of picks and shovels, it’s done on high-performance computers – miners provide computing power to generate the coveted coins.
A new investment opportunity
To answer the question of whether Bitcoin mining is worthwhile, we want to make clear first of all that the generation of Bitcoin is finite. In plain language, this means that once 21 million units have been reached, mining will come to an end.
This makes Bitcoin inflation-proof. At the moment there are about 16,798,400 BTC generated. For those who are still undecided about participating in Bitcoin mining, there’s no better time than now. Because of its increasing popularity, new miners from around the world join the movement every day, with the hopes that it will revolutionize the entire financial system.
With Bitcoin, services and goods can be bought worldwide, and quite a few people and businesses are already using it. Even major corporations such as Amazon, Microsoft and many more accept the digital currency as a means of payment.
More and more shops in Germany are also accepting Bitcoin as currency. By mining Bitcoin, users could soon have the ability to use their mined money to make purchases in day-to-day life.
A blockchain is a public list of all Bitcoin transactions and is shared by all users of the Bitcoin network. In the blockchain, every single transaction is confirmed. The digital currency is traded peer-to-peer, directly between users, without intermediaries.
Safety is the top priority in the blockchain and is respected by all users. All transactions in the blockchain are decentralized and permanently traceable. The purpose of mining is to make the currency tamper-proof.
Despite its benefits, mining has become more difficult and complicated over time. Experience shows that many prospectors around the world are finding it more difficult to solve the complicated mathematical task. Day by day, miners log in from around the world and can calculate for themselves that the challenge of the task to be solved has become almost impossible for an individual.
The problem isn’t just limited to the cryptographic task, either. Mining nowadays demands high-performance hardware and a graphics card with a memory of at least 2 or 3GB. Mining is also a noisy process and one that creates a great deal of heat.
In addition, the energy costs in Germany are very high, which makes profitable mining of Bitcoin more difficult. Many miners have tried and failed, with people putting a lot of money and time into the equipment to mine, only to find themselves abandoning the process because their cost calculations were incorrect. That doesn’t mean you have to give up on the idea of mining, however.
As long as cryptocurrency remains popular, it’s worth it to mine Bitcoin. Why? For one thing, Bitcoin has caused a lot of excitement and many people have put their faith in it as a legitimate currency. On the other hand, it is incredibly exciting to be part of this story.
What will happen when the 21 million is reached, nobody knows. The best option would be that the virtual money is valued at far more than it is now – what that could mean for those in possession of this coin is still to be determined.
If you do not have high-performance hardware and you’re concerned about energy costs, you can mine Bitcoin and other digital currencies for a fee with cloud miners. Cloud miners are companies that have high-quality mining equipment and have been successful and reputable on the market for years.
The principle is simple. The prospect first creates a wallet – on our site, we offer different providers of Bitcoin wallets. Next, you register with a mining provider and buy the appropriate processing power to mine Bitcoin. Popular providers include companies such as Genesis, Hashflare or Hashing 24. Even with a small investment, mining can begin.
What advantages does cloud mining bring? The prospective miner can start immediately after purchasing computing power. He does not have to worry about hardware and maintenance – the cloud miner always strives for the best possible hardware.
In addition, the mathematical task is much easier to solve in a group than alone. Each prospector gets his fair share after solving the task. That means the prospector receives the transaction fees and newly created coins (proportionally). So, is Bitcoin mining worth it? It’s definitely worth a try.
As with all systems, everyone has to decide for themselves, and a definitive answer for everyone can’t be given. What we can say, however, is that the cryptocurrency is at an all-time high in terms of popularity. With a finite number of coins to be mined, there’s no better time to start mining than now – before it’s too late.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.
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