Is Bitcoin Mining profitable? Bitcoin mining is quite possible on the home computer, but this requires high purchases. Many users therefore opt for cloud mining.
Users can rent computing capacity and mine digital currencies. In the case of cloudmining providers, the customer buys the computing power via a web interface. Your own hardware is no longer necessary. The mining power is rented for a certain period. The payment is made once in advance, but the user receives the rented computing capacity. The question, is bitcoin mining profitable through the cloud provider, depends on several factors.
Is Bitcoin mining profitable in terms of financial aspects?
The Cloudminers can earn well, if the price of Bitcoin has increased significantly before. Should it persist at a high level or continue to rise, the scraped bitcoins can be sold at a high price at the end of the term. Important are the criteria according to which the customer selects the Cloudminer. This should prove its structure and equipment, so as not to create the suspicion that it would be a pyramid scheme. Also, he should not promise too much profit, which must be dubious. The runtime must be carefully chosen by miners. The Bitcoin price will change, it can go up or down.
What is the mining difficulty?
Many people are wondering: Is Bitcoin Mining profitable in terms of mining difficulty? That’s the increasing difficulty of mining calculations. It is determined by the capacity that all miners feed into the network together. In the long run, it rises, what is wanted. This means, in addition to increased technical expenses, that the block rate drops. Bitcoin (not all other crypto currencies) halves (so-called halving) at intervals. When a Blockhalving takes place, can only be appreciated. In Cloudmining, there are also hidden costs such as electricity and fees. The extent to which bitcoin mining pays off considering all these factors can be calculated here.
Contract design for cloud mining
The providers have designed their contracts differently. They sell their computing power in multiples of hashes per second, usually as kilo, mega, tera or peta hashes. The higher a hash value, the higher the payouts. But even with low hash values already first distributions are possible. The profit sharing of the customer takes place on a percentage basis. Some providers distribute bitcoins per day, others every week. Of course, the customer must provide a bitcoin wallet address.
Some interested parties creep into discomfort if they are to wait longer for a withdrawal. This is in principle not to be dismissed out of hand, a Cloudmining provider could of course slip into bankruptcy. Nevertheless, most private prospectors now opt for cloud mining, because profitable bitcoin mining is difficult to achieve on one’s own computer, at least in Germany – the electricity costs are simply too high. Add to that the expensive hardware, which has to be replaced occasionally.
Of course, these circumstances also do not make life easy for cloudmining providers. They calculate scarce and often operate huge server farms in regions with cheap electricity. At the same time they offer their computing power cheaper, the tough competition forces them to do so. For example, Genesis Mining 1.0 TH / s was $ 380 in December 2015, compared to only $ 170 in July 2016 and only $ 150 in January 2017.
Conclusion: is still worth the bitcoin mining?
I think: no.
If it would be worth it then they would do it themselves. However, this only affects Bitcoin. There are many other “good” Altcoins that can be gemined with far less computing power.