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ladydark (OP)
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November 15, 2017, 08:55:34 AM |
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As we already know that many people have said that for mining to be profitable,the electricity charges should be low.Just a small doubt about that.In January this year,the price of one bitcoin reached $1,000.Every one said the same answer that cheap electricity cost must be ensured to get profits from bitcoin mining.And now,after nine months,bitcoin price has reached almost $7,500 and still people continue to say that cheap electricity is needed for profits.Just a basic question,bitcoin price has almost increased 7 times than its previous price and i hope that electricity cost would have not increased and would continue to be the same.So,why not bitcoin mining would have turned now to be profitable with such a huge increase in bitcoin price?
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fleachain
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November 15, 2017, 09:02:07 AM |
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The difficulty has been increasing, and how many people have access to cheap electricity?
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soham
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November 15, 2017, 09:13:55 AM |
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From the pricing perspective you are correct, with bitcoin price increased 7 times and with the same electricity price, the mining is profitable. However, you will have to factor in the difficulty level. With every single block discovery, bitcoin mining difficulty is also increasing so your mining power will mine a little less amounts of bitcoin with every block discovery. I have found two very useful link which will give you some idea about the mining profitability. https://www.cryptocompare. com/mining/calculator/btc https://www.coinwarz. com/calculators/bitcoin-mining-calculator This calculators will give you a very nice idea on your bitcoin mining profitability as per the current network difficulty. Try it! |
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Tushar24aug
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November 15, 2017, 09:47:25 AM |
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Yes bitcoin mining is profitable in increasing in bitcoin price suppose that, You have mine 1 btc in this year or in the..
Next year the btc is become higher then....... i know u understand what do you want to say ....
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EXtremeAEX
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November 15, 2017, 10:02:34 AM |
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Yes, you are right, major mining farms will expand their businesses, and it would be hard to compete, but you are right, it should still be profitable with low electricity bills. Like others have said, the difficulty of mining Bitcoins is increasing, so you get less Bitcoin overtime, so if people start now, it is just not as profitable.
Also, the thing is, the hardware is very expensive. And if you do not get those specialized hardware, you are simply wasting electricity, especially if you solo mine at home. (Basically not profitable)
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audaciousbeing
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November 15, 2017, 10:23:46 AM |
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As we already know that many people have said that for mining to be profitable,the electricity charges should be low.Just a small doubt about that.In January this year,the price of one bitcoin reached $1,000.Every one said the same answer that cheap electricity cost must be ensured to get profits from bitcoin mining.And now,after nine months,bitcoin price has reached almost $7,500 and still people continue to say that cheap electricity is needed for profits.Just a basic question,bitcoin price has almost increased 7 times than its previous price and i hope that electricity cost would have not increased and would continue to be the same.So,why not bitcoin mining would have turned now to be profitable with such a huge increase in bitcoin price?
Mining has always been profitable because there is no way people will continue to mine if there is not enough to at least cover the cost and the moment the cost can be covered even if its by $1 then its profitable but where the issue is in the area of greediness where someone who want to make a super normal profit as a result of his mining activities this alone would want a miner to move to another coin that would guarantee a higher return with the same amount of equipment commitment. The higher the bitcoin price does not mean the miners will start making extra profit, because that would also mean higher costs to be incurred because currently the price is relatively high, transactions fees are high, people are forced to looked for alternative means of carrying out their transactions and at the same time volume of transaction will reduce which means revenue will drop for them. |
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Bolt Brownie
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November 15, 2017, 10:35:50 AM |
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As it has been pointed out already, the problem with mining is that the difficulty to mine coins also increases over time, as more miners get into it. So in order to continue to be profitable, you will need a higher hash rate, so you will spend more electricity in order to keep up with the adjusted difficulty. But yes, mining is profitable, but only for mining pools, since you can't really compete with them. You can of course buy some asics, and join a mining pool, chances are you might still get some profit, but in order to be able to do that, you will need cheap electricity as you've mentioned. Here are some charts that might help you understand everything, and also check the calculators some users also posted here. https://blockchain.info/statshttps://blockchain.info/charts/difficultyhttps://blockchain.info/charts/miners-revenue |
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MJunioR
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November 15, 2017, 10:40:04 AM |
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As price rises, BTC mining difficulty rises too. Unless you're in India or China, mining isn't profitable. If you're there too, just invest on a farm and then you could get some nice profit with it, but otherwise, no.
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talkbitcoin
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All I know is that I know nothing.
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November 15, 2017, 10:43:07 AM |
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bitcoin mining is always profitable for those who are doing it, otherwise they would have stopped a long time ago.
the issue with mining is always that individuals have problems with finding the latest ASIC miners at the best price so they sometimes have to buy them at higher price than someone who lives in China and has special contracts with bitmain for example.
and then there is the issue of electricity cost. the miners who you see have lots of hashrate also have contracts with electric companies for cheaper electricity. and individuals like us can not do that.
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no0dlepunk
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November 15, 2017, 11:11:25 AM |
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I believe they conclude that mining isn't profitable due to high electricity because they definitely encourage you to just buy bitcoins and hold. You must also consider the fact that your rig must be upgraded every 6 months at least. Every new setup will cost you money, so why don't you just buy bitcoins and hold? If you have a vision similar to McAfee then go ahead and build your mining rig.
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ahmedjamal1998
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November 15, 2017, 11:23:12 AM |
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This means that you're unaware of the factors on which bitcoin mining depends.
One of the most important factors in mining any cryptocurrency is the difficulty of the coin. The difficulty is basically as it sounds, the difficulty of a miner to find a block hence, get rewards.
As more and more miners join and start mining, the difficulty goes up. If you looked at the charts of bitcoin difficulty at the beginning of the year (in about January) you'll find that it was about 1/3 of what it is now.
Yes the profitability has gone up but still electricity is a major factor that no one would ever neglect. A single antminer s9 takes up no less than a $100 per month in electricity if you have a 0.1 kw/hr price.
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patt0
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November 15, 2017, 11:39:10 AM |
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Let's not forget that the difficulty gets adjusted every two weeks, and can go up or down according to the hash power that is being produced by miners. You always need cheap electricity, but the other thing miners do, is to switch mining from coin to coin (normally bcash and bitcoin) to take the most profit out the of the difficulty adjustment. Although I don't really agree with this procedure, since it has a negative impact on the network when these changes happen to fast, from a business point of view, completely focused on profit, I must say I understand it.
So basically I would risk saying that mining will always be profitable if you have cheap electricity, because even when the difficulty gets higher miners will just switch to another coin, and then get back to the original one.
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Quietman
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November 15, 2017, 11:41:17 AM |
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The rise on the price of bitcoin relates to the difficulty of mining bitcoin as well. Yes, the price of electricity remains or if it rise only a little but still the level of difficulty becomes high as well therefore the profit did not change that much too. Also one of the factors that makes it hard is there are many people who already had interest in mining. Mining is profitable ofcourse and now It is profitable a little bit more than before.
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