Making Money On Crypto Mining In 2019
The days when crypto mining was super-profitable passed away. When the bitcoin mining reward per block was several times greater than current 12.5 BTC, only a small number of people knew about Bitcoin and cryptocurrencies in general. Some of the coins mined at that time irretrievably disappeared due to the loss of access to crypto wallets.
Today, the number of people willing to get the main cryptocurrency is much higher, but the reward for adding a new block to blockchain is lower, and it'll be halved again in May 2020. Therefore, profit from crypto mining isn't obvious. Today we'll consider real prospects of mining in 2019 taking to account the current situation on the crypto market.
A miner's profit is the sum that remains after deducting the cost of mining equipment and electricity. Thus, the profitability of mining directly depends on two factors — electricity price in a particular country and Bitcoin mining difficulty. The more participants want to get their portion of new coins, the higher the difficulty is. Also, more complex mathematical calculations are required to add a new block to blockchain. Therefore, computers consume more electricity.
Mining in 2019: What you need to know
The current situation on the cryptocurrency market is often called the crypto winter. The number of Bitcoin miners significantly decreased at the end of 2018 because of the sharp drop of cryptocurrency prices. The large mining pool BTCC has gone into liquidation, and the share of the mining leader Bitmain has fallen by 12%. As a result, both hashrate and Bitcoin mining difficulty decreased. Now, it is much easier to mine the main cryptos, but the number of those who wanted to do it declined.
81% of new bitcoins are still mined in Chinese pools, and one of the main reasons is cheap electricity. At the same time, the cost of BTC mining ranged from three to six thousand dollars in recent months. The result depended on the country and the network difficulty. As we all know, BTC price is still hovering around $4000. Evidently, miners don't get a high profit now.
However, it doesn't mean that crypto mining no longer makes sense. It's still not too late to start, you just have to be more careful and follow the pieces of advice below.
Tips for miners in 2019
Move your focus from bitcoin to other cryptocurrencies listed in the top-20. If you don't want to pay for electricity a lot, opt for Proof-of-Stake instead of Proof-of-Work.
Pay attention to ether. Even though the ether mining reward decreased from three to two ETH per block after the network update, this may bring you profit in the future when the price of the cryptocurrency will rise.
If you still stick to the Proof-of-Work method, you should acquire new mining equipment. Today, bitcoin mining makes sense only if you use miners released in the past year.
The most crucial thing you need to know: if you are a beginner and want to try your hand in mining, this isn’t the right time for this. A much better option is to make long-term investments in top crypto money. You shouldn't expect high profits immediately, but you will have a chance to get it later.