Can you still make Money mining Bitcoins?
If one knows about bitcoin, then maybe you are well acquainted with the word bitcoin mining. If not, then bitcoin and bitcoin mining are economic terms related to virtually monetary transactions. Let’s know more about it in layman’s terms below.
Bitcoins are a form of digitized currency that is limited in numbers, that is, 21 million. Many countries now accept it in exchange for goods and services from a trade point of view. Bitcoin mining is the process of updating the ledger of bitcoin transactions without any centralized authority.
Those who want to take part in this process can become bitcoin miners. They track transactions that are made virtually. Every transaction has a padlock that can only be unlocked with a particular key (a set of numbers used as a code). The miner has to crack the code of the lock and if they succeed in doing so they are rewarded with $25 bitcoin (it is now $12.5 bitcoin).
You need to be equipped with the best bitcoin miners (computer devices or electronics that processes your code) to initiate this process. They vary in size and cost. The costlier your equipment, the more efficient and effective can be your mining works.
Chances of Earning Money:
Well, this is tricky question to answer. It depends on your performance and efficiency in cracking codes and the value of bitcoins. Many external factors are affecting the chances of earning in bitcoin mining.
Factors to be Determined in the Bitcoin mining:
· Electricity Consumption
The mining process uses very heavy machines. Heavy machines are equivalent to hefty electricity bills. Hence, you aren’t making any money if the outflow is higher concerning the inflow of cash.
· Hash Rate
It is a mathematical expression that measures the rate of guesses you make to crack one bitcoin code. Bitcoin requires efficiency. When you crack more codes in less time, that’s when you earn the profit.
· Bitcoin rewards granted per Block
This era has encountered a lot of miners. This has resulted in a lot of discovery of new bitcoins. Hence, the rewarded number of coins halved from $25 to $12.5. This is a great change and not a dividend you would bargain for.
· Consumption of Power
Even the best Bitcoin miners (device) consume a certain amount of energy that is costly. Before judging the profitability, it’s better to learn the total cost of the consumed power of your miner.
· Trafficking of Miner Rate
Per year there is an increase in the number of miners in the market. This is a threat to profit earning. This reduces the chance of bitcoin mining at the same rate as earlier.
To earn a fair share of profit for yourself, you need to keep these variables in mind. Use the best electronic device to earn more. Don’t fall for cheap products because they don’t last long. You have a bitcoin mining calculator to evaluate your per annum profit. This will help you judge the accurate conditions of your financial status.