While everyone was focused on the constant price movements of Bitcoin and other Cryptocurrencies, mining is a subject that has rarely been cited in recent times.
And for a good reason.
Mining was no more profitable during the market in 2018, with Bitmain, one of the mining companies, losing 50% of its workforce.
The retail buyer was better off purchasing Bitcoin on the secondary market than linking mining pools for Bitcoin. Altcoin prices were falling relatively faster than Bitcoin and mining them was even more unattractive.
Looking back, had you mined Bitcoin or pick Altcoins during the booming market, you’d have made considerable profits if you sell your tokens now.
While hindsight is always 20/20, where does the retail buyer stand today with mining? Keep reading to discover!
Before we look at the sustainability of mining, let’s see exactly what Bitcoin mining is.
The primary goal of mining is to acquire more Bitcoins to the miners for every block mined, based on the time taken to mine.
Releasing new Bitcoins to miners who successfully mined a block is a type of incentive for miners to keep on putting in funds to mine.
Bitcoin is also secure as it verifies transactional data through solving computational math. Hackers will need to hack 51% of the mining system to take over the Bitcoin network.
The amount of computational required to breach into the network is gigantic; as such, the Bitcoin Blockchain has never been hacked before.
The Present Condition of Mining
Mining secures the community, miners get rewarded for their services and are incentivized to continue mining. The network is secured provided that miners keep mining. This cycle ensures that mining is an integral element in Blockchain and will remain so in the long run.
But mining is costly, particularly if you’re a retail investor with limited funds to invest. Additionally, Bitcoin mining is the most expensive out of all the cryptocurrency options.
Increasingly tough To Mine Bitcoin
The bullish run of Bitcoin from the year 2019 has led to an increase in mining activity. Moreover, the mining difficulty is adjusted depending on the amount of computing power in the system. This increases the degree of mining difficulty as more computers join the network.
Therefore Bitcoin mining to the retail buyer is (probably) no more profitable and will be less as the cost continues to increase.