Bitcoin mining is costly...

[Raggie]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

Indeed it consume large amount of electricity. This is happened because nowadays miners keep adding the difficulties for mining.
If you want to gain more from mining, you must buy more equipments, and resulting the increased of electricity cost.

[tee-rex]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

There is no such thing as the cost of Bitcoin.
There is a fixed number of coins that can be mined each day (with slight variations), no matter how efficient your mining gets the reward is the same, if mining gets more efficient and you earn more in $ terms per kwh, then more miners will add more equipment and in the end, the power usage will be the same

Mining is limited only by the price of a kWh, in the end, no matter what equipment will be used, the daily reward can't be smaller than the price of energy consumed in mining those coins.

Real life is more complicated than that.

It is not uncommon in many fields of business to produce at a loss for some time, due to various reasons. The most obvious example is high-cost crude oil producers like UK, Brazil or Venezuela which may be producing oil below production costs for many months or even years because shutting down oil wells and the whole industry at large may cost more while losing market share may be even costlier over the long term. The said is also true with respect to markets as volatile as crypto. So, personally, I wouldn't be surprised to find out that many miners are in fact mining at costs above their break-even point with the hope of future price rise.

[stompix]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

There is no such thing as the cost of Bitcoin.
There is a fixed number of coins that can be mined each day (with slight variations), no matter how efficient your mining gets the reward is the same, if mining gets more efficient and you earn more in $ terms per kwh, then more miners will add more equipment and in the end, the power usage will be the same

Mining is limited only by the price of a kWh, in the end, no matter what equipment will be used, the daily reward can't be smaller than the price of energy consumed in mining those coins.

Real life is more complicated than that.

It is not uncommon in many fields of business to produce at a loss for some time, due to various reasons. The most obvious example is high-cost crude oil producers like UK, Brazil or Venezuela which may be producing oil below production costs for many months or even years because shutting down oil wells and the whole industry at large may cost more while losing market share may be even costlier over the long term. The said is also true with respect to markets as volatile as crypto. So, personally, I wouldn't be surprised to find out that many miners are in fact mining at costs above their break-even point with the hope of future price rise.

You can't compare real-life mining minerals or oil with bitcoin.

For example, you can drill for oil and store it to sell at a higher price, as you can't ramp up production in a matter of days. With bitcoin is simple, why pay 7000$ to mine a 6000$ coin when you can just buy it and wait for the price?

Unlike oil bitcoin mining doesn't need a 24/7 staff, people specialized that you can't simply fire when prices are low and most important, shutting down a mining farm is done with a push of a button at no costs, when we talk about gas wells it's not the same. Also, the ASIC farm can be turned back on with the same push of the button, again not the same for oil and gas wells.

Now, imagine a country stooping its oil production and buying the amount from the markets.
It will lead to less production and more demand, prices going up, oil being again profitable.
Does this happen in crypto? No.

Nope, mining at a loss makes absolutely no sense whatsoever.

[Psalms23]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

Its true that setting up a bitcoin mining rig takes up a lot of resources and even when its running. I have friends that are planning to rely on mining but it came out not really reliable since prices can go down but the cost of electricity is the same. Right now with the current dip in the markets, the rig dormant, because they find it hard to cope up with the bills.

[CryptoRaymond]

Of course it is costly. You will have to manage so many costly hardware to manage the whole system. Even it requires high power supply to run the machine properly. Additionally, the longevity of the machines are comparatively low.

[angelfaria]

Well, yes the BTC minning is a bit costly thing. But I believe that this cost will be minimized somehow in the coming future. But I will tell that for a beginner minning BTC is not good as it is costly.

[erikoy]

Yes this is why the mining of ether has clogged down maybe due to the operation of some mining activities that has to stopped for now because there is major downfall on crypto market price and they could relatively small amount of crypto to mine. So some of the mining would stop but will take another operation when market goes high. Bitcoin mining is costly due to the equipment that you should have and the electricity to use in order to mine crypto.

[Phyton76]

Bitcoin mining is not costly actually because it is unlimited. Cost of mining is high? Of course cost of profit is high too.

[Thyristor]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

I agree with you Bitcoin mining is very highly cost process also i think.I involved with mining only for 2 months than i observe i waste huge time but profit is not reliable because electricity bills are more than what has not been achieved.

[jaythelingly]

Yes it is and this is a reason that many are moving into altcoins. I think something should be done to lower the cost. It is almost unbearable.

[emmybd]

To mine bitcoin, you have to invest a lot to buy bitcoin mining hardware and there is no guarantee that it would be profitable, as mining difficulty has increased. As bitcoin consumes a lot of electricity, so cheap electricity is also very important.

[fianaindriati]

To mine bitcoin, you have to invest a lot to buy bitcoin mining hardware and there is no guarantee that it would be profitable, as mining difficulty has increased. As bitcoin consumes a lot of electricity, so cheap electricity is also very important.

now, to become a miner is quite difficult, because it requires a considerable cost. especially now that the situation is increasingly tightened, as more and more users are sometimes not responsible.

[RyhaniFoyej]

Of course, you are right but you can earn a huge amount by mining. Bitcoin mining is a process by which you can generate bitcoin in your wallet. There are two way to generate bitcoin. The number one is hardware and the number two is software. It's better if you have a bitcoin mining machine that's mean hardware. By this mining method you have to spend  a lot of electricity for the bitcoin that you generate. So it is said that it is an expensive matter. But that mining cost could yield a higher profit. Though bitcoin mining is costly but you can earn a huge amount profit by this mining process.

[sunlitit654]

I will not disagree with this statement mining is bit costly but if your living in somewhere there will be some charges available as maintaining so mining is some thing like that it helps you to have safe transaction and for providing these facilities they demand their payment

[Kingofbitcoin12345]

I understand that bitcoin mining costs is higher than its ROI(return of investments) when bitcoin price is low,, but it doesn’t mean that it wasn’t profitable.. Only those who HODL they’re bitcoin until the recover price can expect earnings and that’s what is wrong to some miners..

We have this problem that making the cost vs profit imbalance and thats is our financial lifestyle.. We’re too much dependent on it and we don’t save.. Be a passive miner who keeps collecting and selling on the right price..

[BenRayfield]

One thing to say mining bitcoin consumes a large amount of electricity and it would take lots of equipment to manned the mining. There should be a development in making the cost of bitcoin lower; given that lower mining cost could yield a higher profit. However, it matters on trading and exchanges.

A few years ago, bitcoin was hundreds of times cheaper. Now the calculation of the block becomes more complicated every day. More and more capacity is required.
If Bitcoin is easy to mine, it will be a problem. Everyone can start mining bitcoin. And it will depreciate. This will be the first step to the death of the crypto world.

[WitaloPinheiro]

I wish I had started in the mining business early on, but no one is a seer 

[bryant.coleman]

Bitcoin mining is not costly actually because it is unlimited. Cost of mining is high? Of course cost of profit is high too.

What did you meant by this post actually? And what do you mean by being unlimited? For your kind information, the supply of Bitcoins is not unlimited. And the supply will be reducing by half in another two years from now.

[rehydrogenated]

Without a doubt bitcoin mining got way ahead of itself. But the price of video cards is finally going back down. There is a lot of competition in the mining space and a lot of risk. If you aren't willing to relocate repeatedly, you could have your power shut off. A lot of areas absolutely hate the idea of bitcoin mining for some reason and governments don't appreciate it when they are subsidizing power and bitcoin miners take advantage of that. I think more bitcoin miners need to be in places that want heat. That would at least do something.

[Markmolotok1488]

Yes, it is so and it is now difficult for an ordinary person to engage in bitcoin mining, all have captured corporations. You may be profitable only if you live in a place with very cheap electricity.