Bitcoin mining becomes profitable again

A couple of years ago, in those days when the virtual currency rate updated world records daily, any user could equip their computer with video cards, lower it into the basement so that it would not hum, and start mining bitcoins. However, over time, many have lost faith in solo mining and mining, as such.


Cloud mining becomes profitable again

Nevertheless, the Bloomberg news agency, one of the main sources of financial information for professional participants in financial markets, has again published a very encouraging forecast, this time, regarding the prospects for bitcoin mining in the near future . Earlier, at the end of last year, Bloomberg called 2015 the “Bitcoin year”, and the year that has come, according to financial analysts, promises changes, revitalization and development in the field of mining .

Miners use their computers to perform complex mathematical operations (with the inevitable costs of equipment and electricity) and receive rewards in bitcoins. Some people had the idea of ​​becoming a millionaire by selling their precious minerals at the peak of their value, at $ 1,137 per coin, at the end of 2013. However, the year before last, the value of bitcoin dived to around $ 183, after which only the most venerable players remained in the game.

Many preferred to join large mining pools or mining conglomerations, combining their computer power in order to mine bitcoins faster and more efficiently.

However, now there are signs that interest in mining is returning, not least, due to the fact that the cost of bitcoin has doubled in comparison with September last year. Although this is not the only factor affecting the profitability of mining, it is undoubtedly one of the fundamental.

“When the price rises, faith in mining revives, and manufacturers of mining equipment rush to develop miners of the next generations,” says Bobby Lee, head of one of the largest Chinese bitcoin exchanges BTCC, headquartered in Shanghai, “If you look at the situation from the point of view of users who have already purchased mining equipment, their income will increase. ” Recall that the BTCC corporation, in addition to the exchange, has the second largest mining pool in the world.

Other pools, however, are also on the rise, and if the positive trend continues, there is reason to expect a tripling of profits, said Genesis Mining CEO Marco Strang. The owners of the Genesis Mining mining pool, in which more than 130,000 miners participate, are very optimistic.

However, optimistic moods in this period are not unique to large whales. With the release of the latest generation of powerful and energy-efficient ASIC miners, which are now available to ordinary users, not just large companies and data centers, and due to the increase in the bitcoin exchange rate, cryptocurrency solo mining is again becoming profitable, as the equipment manufacturers claim. However, as a result of the appreciation, the complexity of Bitcoin began to grow at a significant pace. Over the past 2 months, network complexity has increased by almost 50%. And, in all likelihood, growth will continue further, as long as the price of bitcoin rises.

Nevertheless, one should not lose sight of the upcoming reduction in the miner's remuneration for each block found exactly two times. In the summer of 2016, four years will have elapsed since the last decrease, and the reward for the found block will be 12.5 BTC, instead of 25.

“Get as much as possible now,” advises Bobby Lee, BTCChina CEO. In his opinion, with a decrease in rewards and production rates, the price of cryptocurrency will increase. The current situation in Chinese financial markets is also significantly affecting the increase in bitcoin.

Mining remains a risky and nervous business, warns Olga Cardif, author of an article in Bloomberg. It is not surprising that in recent times there has been a panic in the network in connection with the upcoming changes. However, at the moment, mining is still evolving, the network is growing, large pools are doubling their capacity (such as BTCC), and buyers are waiting for the delivery of their powerful and energy-efficient miners of the latest generation.

“Everyone in our pool makes money,” says Bobby Lee, “if it were not profitable, no one would connect their computer to the network.”

In general, stop hovering in the clouds - start mining in the clouds.

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