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Is it possible to profitably mine bitcoins? Well the answer is complicated, and mining bitcoins can be a great financial choice…or lead to financial ruin. Bitcoin mining has a complicated history, but we can learn much from looking at what has happened over the past few years.
Is Bitcoin Mining Worth It In 2018?
Mining bitcoins has been a very profitable venture for a very long time. These ASICs completely changed the game by increasing the efficiency of mining bitcoins by many orders of magnitude, and completely destroyed the profitability of mining with a traditional computer.
This was true for a few reasons: Many Bitcoin miners were only mining part-time, and were simply using GPUs that they already had purchased for gaming to mine when they were not using their computer.
This completely removed the equipment cost from the ROI equation, as the ability to effectively mine bitcoins was just a benefit of having a decent gaming computer. Also, these individuals would alter their system settings, as well as the settings for the Bitcoin mining software, to lower the stress placed on their hardware, as well as increase their power efficiency.
At that time, there were very few huge Bitcoin mining farms. The average miner was not competing with datacenters full of machines…they were competing with one another. This meant that individuals who lived in areas with low kWh kilowatt-hour prices could easily mine enough bitcoins to cover any additional power costs, and even those in areas with average — slightly above average electricity costs could profit from mining if they had an efficient setup.
A large portion of the mining community, at that time, were not mining for profit alone. The relationship between difficulty and price was not perfect, but mining difficulty generally followed a pattern similar to the Bitcoin to USD exchange rate.
FinTech Firms On The New FinTech Charter
While one other company may have produced a functional BTC mining ASIC around the same time, Avalon was the first to develop, manufacture, and sell these incredible mining rigs to the public. His review of the Avalon ASIC confirmed that not only was Bitcoin mining worth it, but could be incredibly profitable.
Performance is much higher than announced. This Bitcoin miner was mining over 15 BTC per day! Of course, for anyone involved with mining today, Today, one would be lucky to get 0.