Is mining profitable?
A clear and concise answer, YES mining can be profitable and can even make you a rich person…provided that electricity is free for you. So it is possible for tenants who have made an agreement with the owner of the premises taking charge of the electricity bills but he may quickly question this agreement!
As a joke, given the complexity of the mining field, it is difficult to answer this question, but I will try to answer it.
Several factors come into play to determine the profitability of a cryptocurrency. Among which we find:
- Computing power: the more powerful your minor is, the more H you will produce to validate transactions
- The cost of electricity: The voracity of the blockchain network is a point that should not be taken lightly. Many farms are located in strategic locations with low energy costs and a rather winter climate to cool miners naturally.
- The price of cryptocurrencies in relation to the difficulty of mining:
Tool giving an overview of the profitability of mining
Simulation of profitability ?
We will carry out a simulation with Bitcoin through our case in France based on the data corresponding to our situation.
The calculation speed of our miner is 4.7 TH/s operating mainly thanks to our powerful 1500W power supply and we must assume the pool costs amounting to 1% which is normal, but especially the relatively expensive electricity costing 0.15$ per kW/h.
For example, in the case of France, it is not profitable to mine Bitcoin, due to the great difficulty, saturation of the network and the high cost of electricity despite good computing power. Notwithstanding the data previously recorded and the current price of Bitcoin, we are running a deficit of $144 per month. That is why I advise you to mine different cryptocurrencies using this website every day in order to optimize the performance of your miner.
This aspect must really be taken into consideration for the most hesitant investors. As we progress over time, the ever-increasing number of miners only increases competition and therefore the difficulty of extracting bitcoins. In addition, the energy resources required to mine are increasing significantly and are reflected in electricity bills. Finally, as you know, the value of cryptocurrencies fluctuate greatly due to their volatility. To compensate for this, companies are increasing their prices significantly. As a result, the profitability of cloud mining in the context of an investment is questioned.
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