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Is Bitcoin Mining Profitable in 2019?

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Is Bitcoin Mining Profitable in 2019?
« on: Sep 19, 2019, 12:37:45 pm »
 

tahoeblue

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the short answer is no ... But what if the coins went up in price ?
or  Do you have access to free electricity ?


https://www.buybitcoinworldwide.com/mining/profitability/
Is Bitcoin Mining Profitable or Worth it in 2019?
Jordan Tuwiner Last updated January 29, 2019


he early days of Bitcoin mining are often described as a gold rush.

Satoshi Nakomoto’s invention of Bitcoin, “a peer-to-peer electronic cash system,” opened up an entirely new frontier, not just of freedom but of occasionally outrageous profits.

Those with a strong interest in such things, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers, were first to stake their claim.

But is there still gold in them thar hills?

The fact is:

Bitcoin mining has grown from a handful of early enthusiasts into a cottage industry, into a specialized industrial-level venture. The easy money was scooped out a long time ago and what remains is buried under the cryptographic equivalent of tons of hard rock.

The sad truth is:

Only those with specialised, high-powered machinery are able to profitably extract bitcoins nowadays. While mining is still technically possible for anyone, those with underpowered setups will find more money is spent on electricity than is generated through mining.

In other words, mining won’t be profitable at a small scale unless you have access to free or really cheap electriciy.

We’ll explain this situation in depth but first, you need to know a few basic technical terms from the world of Bitcoin mining:



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In early 2017, Bitcoin’s collective hashrate reached nearly 4 Exahash. This represents a tremendous investment into mining hardware, the R&D of such hardware, and electrical expenditure.

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W/xHash/s:

Watts per hashrate per second. Electricity is the major on-going cost of Bitcoin mining. The price paid per Watt will greatly influence profitability.

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Note:

The future profitability of mining cannot be reliably predicted, mostly due to the changing Bitcoin price
.

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Conclusion

The average home miner will struggle to be profitable or recoup the cost of mining hardware and electricity, especially with the Bitcoin downward price trend.

Profitability is highly unlikely given the current circumstances.


The situation may improve in future once ASIC mining hardware innovation reaches the point of diminishing returns.

That, coupled with cheap, hopefully sustainable power solutions may once again make Bitcoin mining profitable to small individual miners around the world.

This would also greatly improve the decentralization of the Bitcoin network, hardening it against legislative risk.
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Last Edit by Gladstone
 

Re: Is Bitcoin Mining Profitable in 2019?
« Reply #1 on: Sep 19, 2019, 12:51:48 pm »
 

tahoeblue

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https://blockexplorer.com/news/cryptocurrency-mining-profitable-2019/
January 19, 2019 by Delton Rhodes
Cryptocurrency Mining in 2019: Is It Profitable and Should You Start?

Bitcoin mining took a big hit in 2018.

For most of the year, mining activity operated below the threshold for profitability. The biggest name in crypto mining, Bitmain, ended the year by cutting 50% of staff and shelving plans for a stock market launch.

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Layoffs at Bitmain

Bitmain is the largest cryptocurrency mining company on the planet. It supplies mining hardware and operates various mining pools.

If you’re looking into cryptocurrency mining, you need to know what’s going on at Bitmain.

In December 2018, Bitmain reportedly fired more than 50% of its staff, including its entire Bitcoin Cash (BCH) development team. The combination of huge losses and the major bet on BCH presents big challenges for the company moving forward. US IT firm UnitedCorp sued Bitmain, Kraken, Bitcoin.com, and Roger Ver for allegedly manipulating the BCH network.

According to numerous reports, Bitmain was unable to liquidate its massive BCH reserves via cryptocurrency exchanges. Moreover, BCH was one of the worst performing cryptocurrencies in 2018. This only exacerbated the struggles of Bitmain.

The company originally planned to open up a Texas-based data center that would cost $500 million and generate 400 jobs but has decided to put these plans on the backburner. Bitmain has also halted plans for a stock market launch, at least for now. Co-founders Wu Jihan and Zhan Ketuan plan to step down from the CEO position and remain on the board of directors. The likely successor is Wang Haichao, who is currently the product engineering director of Bitmain.



Last Edit by Gladstone
 

 

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