Topic: Bitcoin mining is costly... - page 15. (Read 1977 times)
I have how many months have stopped mining bitcoin gan. due to inadequate capital and digital devices such as finding good and good signal networks. and lektop which is good for Mining .
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.
Mining has become somewhat difficult these days because of the less prices and costly electricity in your area.If the prices increase then you can increase your profits with mining and for that you need to have good graphichs in your computer hardwares which are costly amd most of the time you have to replace your hardwares which in turn decreases your profits.So mining at high levels is profitable only which is not at lower level.So try trading instead of mining.
I think it depends on the bitcoin price .. if bitcoin prices continue to increase, bitcoin mining can profit big, but if bitcoin prices go down, bitcoin mining becomes high cost .. bitcoin is a decentralized system that can provide benefits for those who use it investment or mining.
Yes, bitcoin mining is costly because we must buy Bitcoin miner machines and it very expensive if you wanted to get best result
In fact, you can't drill and store oil since storing will also cost you some buck which will only add up to overall costs.
Yes, you can store a lot of oil, check out the oil reserves of some countries and the cost for it.
Apart from that, you don't pay 7000$ to mine a 6000$ coin as you had already paid 7000$ when the price was high and now you have to mine or otherwise your equipment will be useless in a couple of years.
Sorry but you are bent on not understanding how this works.
And most important here we're talking about FIXED costs of mining, not taking past and future situation.
Are you going to open a restaurant and serve people a 1$ ham at a loss because in twenty years a ham will cost 20$?
Don't think so.
To run a mining farm you have x costs per day. If you earn (x-2) in BTC it's not profitable.
So better shut it down and buy x in BTC.
If mining becomes again profitable you power it up again.
You can mine for 20 minutes a day and you can mine 24/7 (when its profitable)
It makes no f sense to mine at a loss. No sense!!!!!!
Shutting down your mining rig will invariably mean losing both on possible future profits and on your investment in this mining equipment.
You shut down an equipment that costs 7000$ to create 6000$ worth of value and you use that money to buy directly BTC. This is not about how profitable mining will be if the prices go up.
This is how mining at a loss is compared to buying bitcoin directly:
For example.
Situation A
You spend 7 000$ to mine a 6 000$ BTC.
If the price per coins goes to 10 000$ you are in a profit of 3000$.
Situation B
You're mining at a loss and instead of spending 7 000$ on electricity you buy 1.2 BTC at a price of 6000.
If the price goes as in situation A to 10 000 your profit is.......5000!!!!!!!!!
Please don't argue with math!!!!
Do you have a mining rig?
I've mined till 2014, then the kid came and no way I'm going to have an S9 in the house with a little kid.
But you can go and check the mining speculation section and how people with solar panels are discussing if it isn't better to mine only during the day as the cost with the batteries that would allow 24/7 mining is bringing the biz in red
Exactly the situation we speak of, mine with cheap power, turn it off when it's not profitable.
This is not about theorizing in this way. People are mining coins at a loss in the hope of future growth, all costs considered. In a nutshell, they have no other choice as stopping mining would mean losing their investment in the mining rigs. In a sense, they are like people constantly adding up to a losing position.
Simple solution. Sell the mining rig.
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?
In fact, you can't drill and store oil since storing will also cost you some buck which will only add up to overall costs. Surely not something that you want when the market is already below your production costs. Apart from that, you don't pay 7000$ to mine a 6000$ coin as you had already paid 7000$ when the price was high and now you have to mine or otherwise your equipment will be useless in a couple of years. Moreover, while storing oil will actually cost you something, storing bitcoins won't cost you anything. In other words, your example actually proves the contrary of what you are claiming here.
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.
Shutting down your mining rig will invariably mean losing both on possible future profits and on your investment in this mining equipment. Do you have a mining rig?
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.
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.
This is not about theorizing in this way. People are mining coins at a loss in the hope of future growth, all costs considered. In a nutshell, they have no other choice as stopping mining would mean losing their investment in the mining rigs. In a sense, they are like people constantly adding up to a losing position.
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.
Look how much bitcoin cost?thats why mining bitcoin is very costly specially when time comes that the value reach $100,000 then it will get even higher,so the best option is mined altcoins lower cost and friendly user,but if i were you better buy coins and wait to pump than mining it yourself
I think the use of electricity with solar power is very helpful to offset the cost of electricity spending for mining. Some countries like South Africa have even used this alternative, but because the climate there is so hot, the miners there need a lot of computer cooling machines.
It sure is expensive. The equipments/machines itself will cost so much that it will take years to get the amount back (not including the difficulty) .
This is why many people go for Altcoins when they think of mining because they don't have to buy specialized machines for that and can simply build a mining rig with GPUs. Electricity cost plays a vital role here as cheaper electricity will directly result in a greater profit.
This is why many people go for Altcoins when they think of mining because they don't have to buy specialized machines for that and can simply build a mining rig with GPUs. Electricity cost plays a vital role here as cheaper electricity will directly result in a greater profit.
Bitcoin mining isnt profitable anymore, considering the costs of the hardware equipments like ASIC, the constant use of electricity (most countries has expensive electricity), and the difficulty of mining a piece, just as you said. I dont think there would be a development to lessen the costs of mining equipments, just leave it to the old bitcoin miners.
It sure is expensive. The equipments/machines itself will cost so much that it will take years to get the amount back (not including the difficulty) .
This is why many people go for Altcoins when they think of mining because they don't have to buy specialized machines for that and can simply build a mining rig with GPUs. Electricity cost plays a vital role here as cheaper electricity will directly result in a greater profit.
This is why many people go for Altcoins when they think of mining because they don't have to buy specialized machines for that and can simply build a mining rig with GPUs. Electricity cost plays a vital role here as cheaper electricity will directly result in a greater profit.
Bitcoin mining price will decrease, what will be with price? I think that PoW and current conditions are good for everyone. I live in county with cheap electricity, so I can mine it with profit.
yes, of course the mining will be very expensive if the country's electricity tariff is very high, but mining will be very profitable if it is done in a country that has a cheap electricity tariff, if in your country expensive electricity tariffs better do not do mining, invest and trade much better.
if you live in a country where you don't have to pay for the electricity? Sooner or later we will be able to cut this cost to a significant amount. the mining equipments are expensive too because many peoples want to buy
nope in the first time it costly if you upgrade your mining the cost of your every will have a income it will x2 .
As you said, it depends on the trading and exchanges. Mining bitcoin might be costly provided with lots of equipments but it's worth it. But then again, if the price was a little lower, then more people could invest in it , causing it to grow and be more beneficial at the same time.
If we consider the market condition now then the price of coins are very low also btc also infected this issue also this time is mining is not perfect I think because its costly and the price of btc is low based on this situations only farm or if you have big amount of money then you can.
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.
I think Make sure that if the cost of electricity and rig is cheaper than other nearby countries then it is worth the shot and you may get back your capital / investment as soon as possible.
Obviously mining is expensive but worth a try, if you ever plan to mine bitcoin then better do the background check and feasibility study of the project you are proposing.
Mining is not for everyone but for those who want to do it then better start doing your own research now
in this point of view that you refer can be vo ^ ce and may be exaggerating because in different places because we speak only in mining but if a group of investors invests bare hydroelectric for power generation only for the use of mining would be an alternative but for this I would need millions of dollars
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.
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.
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