Are you tired of grinding out the 9-to-5 every single day? Do you grow weary of the corporate rat race everyone seems to be running? Do you yearn for a way to grow wealth that doesn’t involve answering to a boss every day? Is the mining cryptocurrency profitable?
Then you need to look into cryptocurrency.
Ever since the most popular cryptocurrency bitcoin burst onto the scene, folks have been trying to figure out the answer to the question, “is mining cryptocurrency profitable?”
There are many success stories of miners who have been able to mine pieces of bitcoin, the skyrocketing value of which has turned them into millionaires. If you’re looking to replicate their success but don’t know if it’s actually possible, then you’re in the right place.
In this article, we’ll look at the return on investment that you can expect to see with cryptocurrency mining.
How Do You Mine Cryptocurrency?
You should be really careful and avoid trusting different gossips and scams.
First things first: let’s make sure that we understand what exactly is cryptocurrency mining.
To do that, one has first to understand what cryptocurrency is. A cryptocurrency is a form of decentralized, digitized currency. The currency is encrypted end-to-end, which makes it practically impossible to counterfeit. This is because every transaction has a digitized token associated with it.
Cryptocurrency mining is the process of verifying this digitized token. A miner is one of the many thousands of people who verify that the particular token used in a transaction is unique to that transaction. That, in turn, preserves the transaction’s integrity and proves that the cryptocurrency used was not a counterfeit.
This verification process is performed through a computing process that essentially “guesses” a 64-digit hex code. Thus, miners need to possess lots of computing power focused on these verifications to mine a cryptocurrency like bitcoin. This computing power can be hosted on personal servers or the cloud.
Is Mining Cryptocurrency Profitable?
To figure out the answer to the question of is crypto mining worth it, we have to look at the costs associated with mining cryptocurrency.
Purchasing the equipment that you’ll need for the mining process will generally cost upwards of $3,000. And as a general rule, you can expect to pay at least $3,000 in electricity costs before you can mine a single bitcoin. Using cloud computing services will also result in similar costs.
Thus, mining bitcoin is profitable when the value of bitcoin is above $3,000 per coin. If you are confident that bitcoin’s value will stay above that mark, then yes, mining bitcoin is profitable. It may take you a while before you overcome the cost of your mining rig, but after that point, all of it is straight profit.
Related: 8 Reasons Why Your Small Business is Not Profitable as You Want and How to Fix It
Start Mining Today
Now that you know the answer to the question of is mining cryptocurrency profitable, you know what your next steps are. Figure out whether or not you believe that bitcoin values will stay above the $3,000 mark. If so, then it’s time for you to start looking into purchasing a mining rig or a hosting service.
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