Is Bitcoin Mining Really Worth it? This Might Surprise You!
If you want to earn more Bitcoin then you might be considering mining this cryptocurrency on your computer. Is this a good thing to do? Keep reading to find out if Bitcoin mining is right for you!
Technical Prowess: Time To Launch
Mining softwares are not very user friendly. They require you (the user) to already possess a good deal of knowledge in order to get started. Therefore, if you are very new to this world, then it might take you some time to do your research.
You’ll need to download mining software. You’ll also need to configure your Central Processing Unit (CPU) or Graphics Processing Unit (CPU) in order to mine. You may discover that you don’t possess a compatible unit for either one of those categories. If you do have a compatible unit, you might also realize it’s on the very low end of the totem pole and won’t reward you with many rewards at all.
Assuming you do have good hardware for Bitcoin mining, then you have to spend time researching and signing up for various mining pools. Many Bitcoin or cryptocurrency miners consider this project as a source of education and entertainment. This is a very healthy and recommended mindset to keep throughout this process. Mining Bitcoin will not get you rich as it did for its early adopters. If you’re expecting to get rich through mining then you need to re-evaluate your approach.
Computer Power: Mining Difficulty Levels
The more people who are connected to the mining network, the harder it will be to discover the next block reward. Satoshi Nakamoto (Bitcoin’s creator) programmed it this way. He realized that in the future many different people will want to mine the coin he created. Therefore he programmed an algorith, that leveled the playing field. This difficulty level makes it easy to find a reward block when there aren’t many other miners and hard to find a block when a large amount of people are mining. The mining difficulty is available for everyone to see. Additionally, there are mining calculators available online that will predict (in averages) how long it would take you to find a block of Bitcoin by yourself. These numbers might startle you!
In order to earn Bitcoin consistently, you’ll need to join a mining pool. Running the software by yourself makes it highly improbable that you’ll find a block. However, if you join a large mining pool, you are rewarded when any one computer in the network locates the next reward. However, you’re only paid in relation to how much processing (or problem solving power) you contributed. So don’t expect to cash out on a large sum if your computer is anywhere close to average.
One major factor to consider is how much electricity and power mining requires. Your computer’s graphics card or processor is working overtime solving very complex mathematical equations. You might also consider it a random guessing game in which it is attempting to randomly guess a very large number. This is like running as fast as you can and not stopping; it’s very exhausting! Your graphics card will get very hot and it might even warm up your computer room.
All of this processing power takes a toll on your electrical bill. You can easily end up with a utility bill double of what you normally pay. Consider this extra cost as a part of your investment. If you don’t make as much mining as you spend in electricity, then your investment is negative.
One thing that many miners pay attention to is Bitcoin’s price over time. Miners might notice a deficit at first because their utility bill is higher than their computers are mining. However, in the following months or year, Bitcoin’s price goes up, and suddenly their costs become worth it.
Is Mining Really Worth It?
Mining is a great way to learn about how Bitcoins are generated. It can be a very educational and rewarding experience given the knowledge gained while setting up your first mining rig. Don’t expect for your efforts to pay off, however, because you might have been better off buying Bitcoin for cash or credit!
Cryptocurrency mining is recommended for those who are hobbyists and enjoy a good challenge. Investors might have better success buying a mining rig contract or purchasing the coin directly. Take this knowledge into consideration when deciding if mining is right for you.