Examining Litecoin (LTC) Mining Profitability During Crypto’s Bear Market Prices
Is it Currently Worth to Mine Litecoin (LTC)?
Cryptocurrency mining activities have been very profitable in different occasions. Users were able to earn extra income and at the same time make the network more secure. However, there are different virtual currencies that can be mined.
Mining Bitcoin, for example, requires a lot of power and energy consumption, something that might not be suitable for a homemade mining rig. But there are other virtual currencies such as Litecoin (LTC). Litecoin is one of the most valuable cryptocurrencies in the market and is known all over the world. At the same time, it has been supported by different companies and platforms in the market.
Litecoin is very similar to Bitcoin since it was created taking into account the most important technical features of it. It is decentralized, it has 2,5 minutes blocks and it has a total supply of 84 million LTC.
Miners work in order to confirm transactions and secure the whole network. Every time a block is validated, miners receive a compensation or reward for their work. The reward provided are cryptocurrencies related to the blockchain in which miners are working. If miners are processing transactions on the Litecoin network, they will receive LTC as a reward for their work.
Every time a miner receives a reward, they will have to sell part of them in order to pay bills and, eventually, employees working on the mining farm.
At the moment each Litecoin can be purchased for over $59 dollars. With this price, LTC mining can still be profitable for all those interested users. In the past, it was possible to mine cryptocurrencies using CPU power or even GPUs. Today, things have changed and it is necessary to buy specific hardware to mine these virtual currencies. At the moment, CPU and GPU mining are not profitable, since they are not able to cover the current costs.
Even if miners would have free electricity the profits would not be worth the effort, they will be minimum. Specialized mining gears are most of the times very expensive. Additionally, they are not necessarily profitable since they might not be able to handle the network difficulty.
Miners are also able to join mining pools were all of them share their power capabilities to mine virtual currencies faster. Once a block is solved, each member receives part of that reward according to the power provided to the pool. Mining pools increase the chances of finding a block compared to mining alone.
In order to definitely give an answer to whether it is profitable to mine Litecoin or not, it is necessary to take into account different factors. The mining pool has generally a fee that mines need to pay when the pool receives a reward. Electricity prices play also an important role and could definitely influence the profitability of the mining activities.
Users should also take into account the cost of buying mining devices and how long time it would take for them to recover the initial investment.