Is Mining Cryptocurrency Worth It?

Can Mining Cryptocurrency be Profitable?

by DailyCryptoInfo 245 Views

Is Mining Cryptocurrency Worth It?

Can Mining Cryptocurrency be Profitable?

by DailyCryptoInfo 245 Views

Here are cryptocurrencies being released in a daily basis for all sorts of purposes, but not many of them get very far and generally dies within a year or two, if you mean mining in a normal computer with a GPU, I believe it’s completely feasible to try mining in your personal computer, specially when you’re not using it. But remember it’s important to keep it with strong hardwares so you can actually mine profitably relevant cryptocurrencies.

If you’re want to mine cryptocurrencies but doenst really want to dive into the subject that much, you should look for mining rigs instead, such pieces of hardwares are specifically built to have great processing power and use it efficiently to give you the best profit as possible.

Is Mining Cryptocurrency Worth It?

From home, that highly depends on 3 factors:

  1. Your tech knowledge,
  2. The amount of risk you are willing to take,
  3. the cost of electricity at your location.

On factor 1, you will need to know a lot about computer maintenance, device driver installation and configuration, and sometimes, even on linux command line usage. Some programming might be useful, but not strictly necessary.

Factor 2 can be explained by what happened to me last Monday. I have a mining rig with 3 Video Cards: one 1060, one 1070 and one 750ti. I use it primarily for test and development, so i don’t really care if i’m having a profit. So, last Monday I set the rig to mine some coins i was interested in, and left for work. When i came back in the evening, the rig was behaving strangely. I remotely connected to it and saw that the mining program was restarting every few seconds wit han error on my 1070 card. I ran some tests and… it wasn’t working anymore. Looks like something happened during the day that burned it, or something. (not temperature, i have it controlled and it never goes above 55 Celsius). So… There’s the risk.

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Mining most popular currencies now is a nightmare need miners and lot of power consumption you cannot make profits Mining . If you are really interested in Mining do check its a new currency and can be mined from browser its not listed in ICO yet its the right time to mine this cryptocurrency.

The reason why this recently stopped being profitable is because a few of our more profitable algorithms for GPUs finally got cracked for ASICs which drives the difficulty up. It won’t be profitable to mine until new algorithms become more profitable.

Hashrate:

Hashrate is the measure of a miner’s computational power.
The higher their relative power, the more solutions (and hence, block rewards) a miner is likely to find.
Initially measured in hash per second (H/s), due to the increasing speed of mining hardware. H/s was soon commonly pre-fixed with SI units as follows:
Kilohash = KH/s (thousands of H/s), then
Megahash = MH/s (millions of H/s), then
Gigahash = GH/s (billions of H/s), then
Terahash = TH/s (trillions of H/s), and even

Petahash = PH/s (quadrillions of H/s).

Difficulty Hashrate:

With hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly.

Bitcoin’s Difficulty measure is what prevents this from happening. It adjusts to hashrate to ensure that blocks are found roughly every 10 minutes.

The future profitability of mining cannot be reliably predicted.

This is due to the ever-changing nature of the Difficulty modifier and the BTC price, in particular.

Is it worth it to invest in cryptocurrencies?

Short answer: Yes.

LONG answer to explain why:

“In 2017, the total market capitalisation of the cryptocurrency industry grew 3300%, from $18 billion to $610 billion USD.”

As a frame of comparison, the S&P 500 index only increased by 26% in the same period. But additionally, the cryptocurrency market multiplied its daily transaction volume by 20,500%, growing from $162 million to over $50 billion by December 31st.

To contextualise the significance of this liquidity, in only 12 months this brought the daily transaction volume of the embryonic asset class to similar levels of average daily trading volume on the New York Stock exchange.

However, what’s important to note from this parabolic growth is its leading indication of further innovation in the industry. The most notable trend in the industry over the last year has been the dramatic appreciation of digital currencies other than Bitcoin.

In 2017, the best performing crypto investments were not recognised as the market’s top currencies at the start of the year nor did they focus solely on use cases relating to monetary exchange. The rise of these alternative coins, referred to as ‘altcoins’, signals the accelerating competition in the industry and the diversifying applications of blockchain technology. This trend will continue to accelerate and presents unparalleled investment opportunities for investors capable of identifying coins with the greatest potential for appreciation.

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To illuminate the considerable returns for investments outside Bitcoin, the following coins recorded the highest price increases in 2017 and had eclectic utilities ranging across anonymous transactions, financial payments, protocol infrastructure, decentralised computing and exchange tokens: Ripple (increased by 36,000%), NEM (increased by 29,000%), Ardor (increased by 16,000%), Stellar (increased by 14,000%) Dash (increased by 9,000%), Ethereum (increased by 9,000%), Golem (increased by 8,400%), Binance Coin (increased by 8,000%), Litecoin (increased by 5,000%), OmiseGo (increased by 3,300%).

These profits are unprecedented over a 12 month investment horizon, but moretellingly, they significantly outpaced the returns of Bitcoin. A portfolio on January 1st 2017 of $100,000, equally distributed across the previous ten coins, would have returned $13,700,000 by December 31st 2017. Despite the media attention around Bitcoin’s meteoric rise, an identical portfolio holding $100,000 of Bitcoin would have returned only $1,378,000 in the same period.

“In 12 months, a $100,000 portfolio, equally distributed across these ten coins, would have returned $13,700,000.”

That said, for the general public, investing in cryptocurrencies is currently not as practical as it is popular. The ability to trade ‘altcoins’ through different exchanges, correctly deposit and withdraw fiat currency and securely protect crypto asset holdings requires specific technical understanding. This is prohibitive to new participants looking for immediate exposure to the industry and appears to have slowed large quantities of institutional, corporate and retail investments thus far.

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