Cryptocurrency Mining - Bitcoin online miner is good or bad?

Bitcoin mining is the process of generating new bitcoin into circulation, and we all know that bitcoin mining consumes a large amount of electricity that is not good to environment. before you plan to invest the time and equipment, read this explainer to see whether mining is really for you good or bad. We will focus primarily on Bitcoin (throughout, we'll use "Bitcoin" when referring to the network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a number of individual tokens).

Bitcoin online miner is good or bad

Bitcoin miner Work 

  1. By Bitcoin mining, you can earn cryptocurrency without having to put down money for it.
  2. Bitcoin miners receive bitcoin as a reward for completing "blocks" of verified transactions which are added to the blockchain.
  3. Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the total mining power on the network.
  4. Double spending is a phenomenon in which a bitcoin user illicitly spends the same tokens twice.
  5. You need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to set up a mining rig.

How much a Cryptocurrency Miner Earns

The rewards for bitcoin mining are halved every four years or so. When bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. By 2016, this was halved again to the current level of 12.5 BTC. On May 11, 2020, the reward halved again to 6.25 BTC.

In November of 2019, the price of Bitcoin was about $9,300 per bitcoin, which means you'd earn $116,250 (12.5 x 9,300) for completing a block. Not a bad incentive to solve that complex hash problem detailed above, it might seem.

Is Bitcoin Mining good or bad? The Pros and Cons Before You Start

Pros

1.You Can Make Money

Money is a motivating factor for an awful lot of people—sad, but true. And mining crypto has the potential to earn you a significant amount of cash.
Though beware: It’s certainly not a given. You need to make sure you’ve got the right equipment and that you’re mining the right coins.

2. Mining Is Getting Cheaper

At the start of December 2018, the Bitcoin mining difficulty dropped by 15 percent. It was the second-largest drop in Bitcoin’s history (after an 18 percent drop in 2011).

The drop was driven by the large number of miners who quit following crypto’s crash in the preceding months.

Fewer miners mean less hash power, and less hash power means Bitcoin automatically adjusts itself the reduce the difficulty of solving new blocks.

For people who are still mining—and mining newcomers—the upshot is mining Bitcoin has suddenly become a lot more profitable.

3.The Rise of Cloud Mining

For new miners, the rise of cloud mining is also a massive positive. It lets you mine crypto without shelling out on expensive hardware and extortionate electricity costs.

Instead of using your own equipment, cloud mining offers a way for users to “hire” hardware in remote data centers. Some of the leading cloud mining providers are Genesis Mining, Hashnest, Hashflare, and Hashing24.

The process is simple: Make an account, choose your hash rate, pay your subscription fee, and wait for the coins to start rolling in.

4. Hardware Retains Its Value

If you don’t want to join a cloud mining pool, you’ll need to buy your own hardware (more on this below).

However, on the positive side, the hardware retains its value very well. If crypto were to go out of existence tomorrow, you’d still be sat on a pile of kit you can re-sell for a tidy sum.

5. You’re Helping Crypto Grow

Crypto mining isn’t all about the individual. Miners also play a massive role in the crypto community. Indeed, if miners didn’t exist, Bitcoin’s value and practical worth would drop to zero overnight.

If you believe in cryptocurrency and want to help it become more mainstream, mining is one of the best ways to get involved and contribute to its long-term success.

Cons

1. Complexity

Getting started in the world of Bitcoin mining isn’t easy. Even people who have a good understanding of how blockchains work might find themselves bamboozled in the early days.


At the very minimum, you’ll need a coin wallet, mining software, membership in a mining pool, an account with a crypto exchange, a customized mining rig (computer), a GPU, or an ASIC chip, and cooling equipment.


Needless to say, getting all those things up and running smoothly isn’t a straightforward task. You need to be prepared to read a lot and make plenty of mistakes.

2. Electricity Costs

Mining crypto—especially Bitcoin—is an electricity-intensive process. Indeed, it’s so intensive that crypto is now starting to feel the heat from ecologists. They argue that mining is beginning to have a seriously negative impact on the environment.


It’s not hard to see why they make those claims. The figures are hard to comprehend. According to Digiconomist, the annualized total value of Bitcoin mined in the last year is $2.7 billion. 

The cost of the electricity to perform that mining stands at $2.6 billion. Bitcoin alone now needs more energy than the entire country of Bangladesh; that’s enough power to run five million US households for a year.
Prior to the crash at the end of 2018, the figures stood at $4.6 billion and $3.6 billion, respectively.


3.Hardware Costs

Electricity isn’t the only cost you need to worry about. If you don’t want to go down the cloud mining route, you’ll also need an impressive array of high-end hardware.


There are a few different hardware approaches you can take. Discussing them is beyond this scope of this article, but suffice to say you’ll need a large budget. If you want to learn more, the Bitcoin wiki gives an insight into the type of kit you’ll need.


4. Scams

The crypto world is awash with scams, some of which affect the mining industry.


People who choose to use cloud mining companies are, particularly at risk. There’s no shortage of fake companies and unscrupulous organizers, all of whom want to take your subscription fees and your mined coins, leaving you with little to show for your efforts.
If you want to start cloud mining, make sure you use a well-established company like the ones we mentioned earlier.


5. You Could Lose Money

Naturally, we are big believers in crypto and blockchains. But our bullish sentiments don’t mean that long-term success is a given.
If the last couple of years have taught us anything, it’s that cryptocurrency prices are extremely volatile. And when prices go down, it drastically affects mining’s profit margins.


Given the high costs of hardware, electricity, and cooling, a drop in prices could mean you’re paying out more money to mine crypto than you’re receiving back in tokens. Using an ASIC miner can help.
These declining margins led to the previously-discussed exodus of miners in late 2018. Sure, the decrease in difficulty offsets some of the losses, but no one in the community has any control over utility and hardware prices.

Conclusion:-  Not Good 


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