I think mining will get incorporated into various domestic products such as heater and air con units.
Maybe, it could happen as more and more domestic devices get connected and go online
Topic: Bitcoin Rewards From Mining - Still Economically Viable? (Read 226 times)
Maybe, it could happen as more and more domestic devices get connected and go online
I think mining will get incorporated into various domestic products such as heater and air con units. Tht's why I've just bought ThermoCoin.com - I think it has a nice USP if I ever decide to start my own coin. It could be a good way to decentralise mining.
The bitcoin reward for mining is economically viable only on the industrial level, to actually mine bitcoin you need loads of server power and the electricity cost for that is huge, small compared to that of a server cost, like an exponential graph this business only works art high processing power.
Single individuals (non-corporate) mining is no longer viable - simple.
The bitcoin reward for mining is economically viable only on the industrial level, to actually mine bitcoin you need loads of server power and the electricity cost for that is huge, small compared to that of a server cost, like an exponential graph this business only works art high processing power.
Based on mining there are many costs are related so if you need to mine you need electric supply also cooling system also effort based on this who are doing this in a large scale they are more benefited also who are doing this at home they are getting less amount of profit because of external expense.
So in your opinion what is the answer? Is it still economically viable to mine?
Based on mining there are many costs are related so if you need to mine you need electric supply also cooling system also effort based on this who are doing this in a large scale they are more benefited also who are doing this at home they are getting less amount of profit because of external expense.
Mining has already passed its best time. It will surely become simpler and simpler, and all digital currency can be mined, not just Bitcoin.
The best days of mining are definitely over and maybe the best way to make money would be purchasing low and selling high (or from ICOs) but there are too many options out there and many ICO failures. The same way ICOs have no guarantees so do not have mining rewards for small time individuals who mine. Just the farms and mining pool owners make phenomenal amounts of money.
Mining has already passed its best time. It will surely become simpler and simpler, and all digital currency can be mined, not just Bitcoin.
But if after all your costs and expenses you earn a marginal amount of Bitcoin, then what's the use? It would have been better to buy Bitcoin in the first place and hold that than owning a miner that's depreciating in value. Plus no labor intensive tasks, and unforeseen problems.
I have to agree with this, miners depreciate in value over time and if the returns are economically making sense then what exactly is the point in mining?
If you has some Asic miners then it would be easier to sell your equipment, and save yourself from all the problems of mining, then buy and hold Bitcoins from the earnings received from the sale. Hahaha.
I believe, in due time, that happens to most small scale miners upon realization that they will lose money.
I believe, in due time, that happens to most small scale miners upon realization that they will lose money.
that depends on whether they are actually losing money and also depends on how much.
for example if the average price of 1BTC is $7500 and it costs somewhere around that price like $7450-$7550 to mine one bitcoin then they are not losing money they are in fact making profit. specially with bitcoin price rising in long term so instead of paying $7500 to buy bitcoin today you spend $7500ish on mining it.
but i don't think the reality is like that. the profit is a lot more than just a small margin. it costs a lot less to mine bitcoin still. that is one of the reasons why the hashrate is still rising.
But if after all your costs and expenses you earn a marginal amount of Bitcoin, then what's the use? It would have been better to buy Bitcoin in the first place and hold that than owning a miner that's depreciating in value. Plus no labor intensive tasks, and unforeseen problems.
My personal thought is that it isn't viable for an average miner. Why? Because you're taking a huge risk buying the hardware. I'm not even going to go into the whole energy cost vs cooling discussion because the main deterrent for me is lack of warranty and the overall attitude of mining hardware producers.
You have to pay upfront and then:
-your hardware can get seized at customs
-you can get charged additional taxes
-it can get stolen in transit
-it can get damaged in transit
-it can arrive dead or die right after being plugged in (which happened a lot)
In all those cases you lose money and it's huge money due to the minimum value of those miners, while they offer no refunds.
You have to pay upfront and then:
-your hardware can get seized at customs
-you can get charged additional taxes
-it can get stolen in transit
-it can get damaged in transit
-it can arrive dead or die right after being plugged in (which happened a lot)
In all those cases you lose money and it's huge money due to the minimum value of those miners, while they offer no refunds.
You have a valid point, what happens when someone in the US or Europe purchases a miner for thousands of US$ if it fails when it arrives?
My personal thought is that it isn't viable for an average miner. Why? Because you're taking a huge risk buying the hardware. I'm not even going to go into the whole energy cost vs cooling discussion because the main deterrent for me is lack of warranty and the overall attitude of mining hardware producers.
You have to pay upfront and then:
-your hardware can get seized at customs
-you can get charged additional taxes
-it can get stolen in transit
-it can get damaged in transit
-it can arrive dead or die right after being plugged in (which happened a lot)
In all those cases you lose money and it's huge money due to the minimum value of those miners, while they offer no refunds.
You have to pay upfront and then:
-your hardware can get seized at customs
-you can get charged additional taxes
-it can get stolen in transit
-it can get damaged in transit
-it can arrive dead or die right after being plugged in (which happened a lot)
In all those cases you lose money and it's huge money due to the minimum value of those miners, while they offer no refunds.
as far as the profit is concerned when it comes to mining bitcoin and the rewards it is always a dynamic thing which is why it always remains profitable for majority of miners and also it is the reason why bitcoin will always be mined by some miners.
it is all about the difficulty. if some day it becomes less profitable then miners will start leaving until it becomes profitable again. and when it becomes more profitable then more miners will come in until it becomes normal-profitable again.
it is all about the difficulty. if some day it becomes less profitable then miners will start leaving until it becomes profitable again. and when it becomes more profitable then more miners will come in until it becomes normal-profitable again.
Technically the less people mining means the greater the rewards for the miners so that also plays a huge part in the scenario.
Well, I think that it is viable to mine bitcoin. Mining bitcoin is still economically viable. Moreover, if you have trust and believe in bitcoin you will do mining. I don’t mind mining bitcoin whatever the price is.
Only pool operators and with big mining farms can benefit from Bitcoin mining, and it also depends on your location if the electricity is much lower, if you are an individual and you are looking to mine alone, you are going to regret if you calculate your cost and your profit.
Without doubt you are correct about pool operators still making money. Individual miners probably are not maximising their potential whereas commercial corporation miners are still making lots of money.
So the question is with so many people all over the world mining Bitcoin especially those with Bitmain type miners and farms, apart from the pool operators who continue to benefit, is the share received viable for others to mine Bitcoin when keeping electricity, time and effort in mind?
Only pool operators and with big mining farms can benefit from Bitcoin mining, and it also depends on your location if the electricity is much lower, if you are an individual and you are looking to mine alone, you are going to regret if you calculate your cost and your profit.
If you has some Asic miners then it would be easier to sell your equipment, and save yourself from all the problems of mining, then buy and hold Bitcoins from the earnings received from the sale. Hahaha.
I believe, in due time, that happens to most small scale miners upon realization that they will lose money.
I believe, in due time, that happens to most small scale miners upon realization that they will lose money.
that depends on whether they are actually losing money and also depends on how much.
for example if the average price of 1BTC is $7500 and it costs somewhere around that price like $7450-$7550 to mine one bitcoin then they are not losing money they are in fact making profit. specially with bitcoin price rising in long term so instead of paying $7500 to buy bitcoin today you spend $7500ish on mining it.
but i don't think the reality is like that. the profit is a lot more than just a small margin. it costs a lot less to mine bitcoin still. that is one of the reasons why the hashrate is still rising.
The proof is really in the fact that it is still happening. Mining must still be financially viable or else people would pull the plug because otherwise they are acting irrationally (or derive benefit from continuing the bitcoin fight at their own detriment, but that is hard to quantify). Maybe for small scale home miners you are priced out of the market.
this I agree with. and about small scale home miners I have to say most of them won't go out of the mining market because as a small scale miner you don't have such a high cost and you don't need to cover those costs by selling bitcoin as a result many of them can just mine and hold bitcoin while paying their bills from pocket. something like an investment.
additionally there is always improvement in mining scene. for example Japan is now producing better mining chips which they claim is going to top Bitmain https://bitnewstoday.com/news/technology/gmo-introduces-new-mining-chip-ceo-reportedly-vows/
If you has some Asic miners then it would be easier to sell your equipment, and save yourself from all the problems of mining, then buy and hold Bitcoins from the earnings received from the sale. Hahaha.
I believe, in due time, that happens to most small scale miners upon realization that they will lose money.
as far as the profit is concerned when it comes to mining bitcoin and the rewards it is always a dynamic thing which is why it always remains profitable for majority of miners and also it is the reason why bitcoin will always be mined by some miners.
it is all about the difficulty. if some day it becomes less profitable then miners will start leaving until it becomes profitable again. and when it becomes more profitable then more miners will come in until it becomes normal-profitable again.
it is all about the difficulty. if some day it becomes less profitable then miners will start leaving until it becomes profitable again. and when it becomes more profitable then more miners will come in until it becomes normal-profitable again.
Mining farm operators sure know where to place their rigs and have taken into account all the necessities in mining and the operational costs, so yeah, IMO, mining is still economically viable and profitable even with the current price and difficulty. Most are still earning incredible amount of money by just letting their miners on 24/7, and have you seen large mining farms closing down their doors? No? It's because the bigger your farms are, the more profits you will be raking in in this business. For small-time miners though, I'm not sure whether they still make a buck by keeping their trusty miners running for the day, but I'm pretty sure most of them already quit even before 2017 and have switched to GPU mining for altcoins.
Yes farms are not closing their doors therefore for them the rewards are still good. It is all about individual miners whether they make anything if they buy say a Bitmain 14ths for thousands of US$ and still get next to nothing in return because of the competition mining alongside them.
Jump to: