Bitcoin mining is the process of verifying transactions on the Bitcoin blockchain by solving mathematical problems using computational power. In return, the miners are rewarded with new Bitcoin.
Bitcoin and cryptocurrency mining presents a sizzling opportunity for people to generate passive income from anywhere in the world. Mining can also be done as a full-time venture but might require a sizable amount of capital to sustain a large-scale operation.
(i) If you have a powerful computer with GPU (Graphics Processing Unit), you can mine bitcoins using the application called NiceHash. It is a popular service that lets people mine bitcoins for their use at a profit. In addition, it uses cloud mining, meaning you don’t need to buy expensive hardware. (ii) If you want to mine Bitcoins using Genesis Mining, Hash Btc, Hashflare, or Cex.io, you will need to buy mining contracts from them. You can purchase one-year or one-month packages of Bitcoin Mining Software in hashflare and cex.io.
(iii) If you are looking to mine with your CPU, then there is a high chance that you could mine cryptocurrencies without even opening your wallet as software is available online that allows you to mine bitcoin using a Bitcoin generator but the incentives are meagre.
Bitcoin mining is profitable as Bitcoin’s price continues to rise. For example, if you bought a bitcoin miner for $1,000 and are making $500 in one year, you are earning 50% profit. Bitcoin mining is rewarding compared to other passive income sources and carries several other benefits.
By rigorously using the money you earned in excess of your expenditure and saving it for future use, you can earn far more than what cryptocurrency mining rewards above. In addition, it provides a steady flow of income every month. Finally, it prevents your money from losing its value compared to investment opportunities that yield higher returns than cryptocurrency mining.
There is no definite answer for profitability as the supply of bitcoin mining also keeps decreasing. It depends mainly on Bitcoin’s price, your hardware’s performance, and you. The current price of Bitcoin is $35,000, which has trickled down to a 6x return in just four years. However, many factors affect the profitability of bitcoin mining, including electricity costs.
Electricity cost is the most significant factor which decides your profit. The higher the electricity cost, the lesser profit you are likely to make. It is advisable to calculate your ROI (Return on Investment) before starting a bitcoin mining venture.