March 2018: Lets take a close look to see is Bitcoin Mining worth it in 2018 and beyond. A lot has changed since bitcoin first started being mined. Barriers to entry are popping up all over now. What is affecting bitcoin mining now? With government crack downs, tough talk on starting to tax it, and regulate it, banks pushing back, scams, bitcoin getting lost or stolen, and high costs of bitcoin mining, lets look and see, is bitcoin mining worth it anymore?
ELECTRICITY COSTS SUCKING THE PROFIT OUT OF BITCOIN MINING
Is Bitcoin Worth it with high costs of Electricity?
Is Bitcoin Mining worth it? Is has been serially breaking records this year and it would seem that those mining it would be having a time of their lives, only if. Even as Bitcoin trades at over seven thousand dollars, it was announced that the huge electricity bills that come with mining is making it less viable for more and more miners, raising fears that it might become Bitcoin’s Achilles heel.
While others say that in order for the cryptocurrency to survive, a cheaper, more energy efficient means of making it must be made is needed, and pretty quickly. This is something the core bitcoin community will likely frown on, as they just recently saw off the segwit2x update which proposed to increase the transaction capacity of the blockchain which will make it cheaper. The very fiercely protective inner circle of huge miners has to be on board for any major change to see the light of day.
Christopher Chapman however noted that the continuous rise of the consumption of power is likely to bring in major government taxes and regulations as a way of checking the unabated growth in the industry’s use of power.
Huge Investment Costs in Bitcoin Mining Making it not worth It
Is Bitcoin Mining worth it?: Yes if you have $300,000 dollars to spare
Christopher Chapman, senior analyst at Citigroup Inc made the observation that even at present record breaking rates, the minimum investment required to make a bitcoin mine marginally profitable is over an astounding $300,000 and will likely increase to over a million dollars in a few years time, adding that the power consumption of the industry will soon match that of the whole of Japan.
The higher and higher costs of investing in better and better mining equipment all the time is going to make it not worth it eventually, unless the bitcoin price in value rises along with the cost of mining to offset it and still make it profitable. No one does anything for free so eventually the price will have to rise to keep mining along with the difficulty to mine. Otherwise it will all grind to a halt.
Mining Difficulty Increase Has made Bitcoin Mining Not Worth it
Is Bitcoin Mining Worth it?: Not for Small Miners the cost is too high
Unlike its early days when mining could be done with simple desktop CPU, mining has become harder and harder requiring miners to use very expensive and costly energy consuming specialized equipment for it to yield any reward whatsoever. And as the price of bitcoin cryptocurrency surges, the demand for it increases which translates into more miners competing for the limited number of Bitcoins, and with the establishment of factory size bitcoin mining rigs in countries like china, more and more smaller miners are getting pushed out of the industry from high costs.
Russia is Making it Not Worth Mining Bitcoin With Tax Crackdown
It is yet to be seen what world governments will make of the huge power consumption of the industry, as regulations are still close to non-existent. Only recently Russia, proposed to start taxing and regulating Bitcoin miners, as it plans to trace the mines by detecting places of high electricity consumption. This will definitely add to bitcoin costs of mining in Russia. Is Bitcoin Mining worth it still in Russia?
Yes, so far its just proposals and talk, but when the change is made and they track you down then it wont be worth it anymore. Your going to have to mask and hide electricity consumption from the eyes of those looking to track you down. So Is bitcoin mining worth it in Russia?
If you have a plan to hide your electricity consumption in the future if and when the taxation and regulation comes in place then maybe yes, but if you have no way of doing so then you need to be prepared to pay taxes, depending on how high the taxes are that get put in place will determine if mining bitcoin is still worth it in the future. For now, keep mining away.
Bitcoin Not Worth it in China?
China crackdown on exchanges making bitcoin really not worth it there
Bitcoin has surmounted many assaults on its existence, just few months ago China closed down all its major exchanges, but some analysts say that it is the Bitcoin costs of production rather than any government crackdown that poses the major threat to the viability of bitcoin and the cryptocurrency industry at large. Small consultation for our friends in China though.
China will sell you the bitcoin mining hardware though. This is where most of it is manufactured and shipped around the world. They do not want the people to use it but they sure do want companies to sell the hardware to everyone else in the world. Go figure.
Just because the exchanges closed down there does not mean that the Chinese people will abandon the cryptocurrency outright. Where there’s a will there’s a way. If you owned hundreds, thousands, tens of thousands or more worth of bitcoin in China your not just suddenly going to throw you wallets away. lol…. Nope just go find exchanges outside of China. Is Bitcoin Mining in China worth it? Probably not, go set up your industrial mining rig farm some where else.
Is Free Bitcoin Mining Worth It?
There are all sorts of sites up offering free bitcoin, but is free bitcoins too good to be true? There are several ways to get free bitcoins and we cover them here at BitBetBuddy. Most of these free bitcoins are promised by way of facet games and mining games.
How these games, spinners, facets, whatever you want to call them is that you get paid in very very small units of bitcoins in exchange for completing tasks of some kind. These tasks include, watching video ads by sponsored companies, as well as completing surveys and other methods.
You definitely wont get rich from it, but it is a good way for beginners to get a feel for the currency and introduce them to the world of crypto technology. Its an ads game. The Facet gets paid by companies to promote them and their products, apps etc. They pay you by dripping small satoshi bitcoin units while they get paid cash from advertisers. Good luck using your cell phone mining for bitcoin, thats something you may want to forget right now.
Is Bitcoin Worth Using at Least as a Currency?
How can I use Bitcoin? Best Way to use and get Bitcoin:
- As an investment
- Bitcoin gambling and playing games with it
- Bitcoin Cloud Mining
- There are a few reasons to use bitcoin as a currency for buying goods and services (Only if costs are not to high) They have been going up, see the bitcoin review on why use bitcoin
So Is Bitcoin Mining Worth it Still?
Many say yes and some say no, no for small miners, yes for big outfits
Whatever the outcome maybe, it would seem the smaller miners might have been pushed out of the industry for good, as every year more and more expensive mining equipment is made and coupled with the power cost, they have no means to keep competing in an industry that doesn’t wait for no one.
Bitcoin Mining is it worth it on your own? No its not worth it anymore. So who is Bitcoin Mining still worth it to, anyone? Yes it is, but only worth mining for the big corporations now. You and I only stand a chance now with Cloud Mining or GPU mining and other forms of cryptocurrency mining that we can still manage the difficulty levels with smaller rig setups.
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