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Understanding Bitcoin Mining Profitability

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Since around 2015, the interest in Bitcoin has raised significantly. The change has been large enough that people all around the world are taking notice and become very interested in Bitcoin. Between 2015 and 2017, the price per coin went from $300 to a huge $20,000. However, in around November 2019, it had dropped back down significantly to around $8,000 per coin.

This isn’t just particular to Bitcoin; many other cryptocurrencies see these types of rises all the time. They may not be as significant, but changes do definitely happen throughout all of the different types of cryptocurrency. Buying bitcoin is very simple, contrary to popular belief, but the best option changes for everyone, so do your research before settling. 

The profitability of mining

People tend to think that cryptocurrency mining is fairly simple and straightforward, but it actually takes a lot of brainpower and knowledge to do. All you need to do it set up a good computer that can help solve and complete many different complex puzzles. Then, once all is said and done, you are rewarded with a coin or a fraction of a coin which is a very desirable payout for people in the cryptocurrency world. 

While it may sound easy, it is said that Bitcoin mining is becoming significantly harder as time goes on and while it was originally a fairly simply feat, it now has its own handle of complexities. This is proven when you put into perspective that the original miners of Bitcoin used to earn Bitcoins very quickly and without much help at all, a simple computer and a small amount of expertise would do the trick. With Bitcoin, with every four years that pass by, the reward is being halved, soon, you won’t be receiving much at all for your hard work. 

That is why so many miners these days are opting to be paid in actual currency instead of Bitcoin because it really doesn’t end up successful if they are paid with cryptocurrency. On top of all of this, miners who take their jobs extremely seriously have built an extravagant array to mine, so other miners who have to start small only have a very tiny chance of actually succeeding due to that. While you can join a Bitcoin mining pool to make your efforts more effective, you will be running at a loss because you will need to pay a fee. 

The bottom line of mining

Bitcoin mining is becoming harder, but with many new apps such as the Bitcoin Equaliser app becoming available, people have high hopes that others will be more interested in trading rather than mining. Unless you have a large amount of money available to spend on an even bigger amount of equipment to get started as well as substantially increased energy bills, Bitcoin mining probably isn’t the best idea. Please remember that Bitcoin and other forms of cryptocurrency remain as a highly volatile form of investing and there is really no telling as to how it will perform over time.