Back in the beginnings of bitcoin, what is not that long time ago, even if it seems like that, it was enough to have a strong PC and good internet. With these two and a tip from the future, many have started mining bitcoin over a decade ago. But what if we are not among those lucky few, most likely millionaires today? Can we start mining crypto coins in the year 2024, and earn some money, since you know, we can’t go outside and live an ordinary life. Many say that due to the industrialization of cryptocurrencies mining, it is not as easy to make a profit these days.
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But let’s say you are determined to continue on this journey. Mining is not that easy. There is a need for quality equipment. First and foremost, you need powerful graphic cards. They could be as expensive as 750 dollars each. For example some cryptocurrencies are more expensive than gold. Now, it is not impossible to set up a basic mining room for, let’s say 4 000 dollars. But to do it properly, it might cost over 10 000 dollars for your setup. The costs of your machines will fluctuate depending on the manufacturer. There are two most important aspects to look in. Energy use is one, and computing power is the second. Naturally, the stronger the computer power is, the faster it can mine. And the less energy it uses, the more profitable it will be. So if you are picking a setup to buy, what to consider most is profitability and durability. Durability will determine how long that machine can mine.
Hence, don’t go for more affordable or even more powerful setups if they will stop working after only a couple of months.
That is not where the expenses end. Getting the gear is one thing, but there is also going to be a call for an abundance of electricity. It takes a lot of power to mine crypto coins, especially bitcoin. If electricity is expensive where you plan to set up, it could be quite hard to make a profit mining. Therefore, if you don’t have access to cheap power, the cost of electricity needed to mine a single coin could be almost as much as that coin is worth. That doesn’t sound worth at all, doesn’t it? Also deserving to keep in mind is that if your setup is not that strong, it could take months to recover the initial investment. So bear in mind that this is not a quick way to earn some cash.
Except for the electricity bill, there is another menace to watch out from. We are referring, of course, to taxes. If you resolved to continue with mining, there is a necessity to inform yourself of all of the significant tax laws in your country. What might make that dull task a bit easier are some of the crypto tax software out there since they could assist you in all your hardships? Naturally, going into this adventure alone was never wise. That is why we recommended some software systems that specialize in this matter already.
So as we all know by now, to mine a bitcoin, your setup needs to solve a puzzle. The stronger the rig we have, the better for us since competition out there is getting pretty tough. So given that one coin is produced every 10 minutes, how do they balance the number of coins entering circulation?
They do it by increasing the complexity of the task. It is something they do approximately every couple of weeks. So it stands to logic that after over a decade of that, it has become progressively harder and harder. Well, to be honest, saying it like that would be an understatement. If we would give the initial task a challenge rate of one, you could bestow them a challenge rating of more than 15 trillion in the year 2024. That in its self could be enough to discourage some to start mining this late in the game.
Thus, what to do to stand a fighting chance versus huge companies that can out mine you effortlessly. What many people are doing is entering a mining pool. That is a collection of small miners that are combining their strengths to compete. Profits are divided justly, of course. With that method, it is possible to elevate the swiftness of your work, and the hardness of the task ahead demoted. If you are interested to make profits via crypto exchange check bestcryptoexchangeaustralia.
Every single day more and more individuals are joining these pools, as there they see their only chance for making profits. Needless to say, since your gains are shared, it might appear as profits are smaller. But the truth is that without combined power, it would be unlikely to get any prize in the first place.
By now, it is relatively transparent that mining bitcoin is not the same game in 2009 and 2024. Doing that as a side job from a house or something like that simply isn’t as viable in today’s market.
While it is not completely impossible, there are several factors to consider, most significant being the cost of acquiring your mining setup and the expenses of actual mining in electricity. But given that this is still a fairly new industry, some changes could still occur. But there would likely need to be a change in the aforementioned two aspects. For example, a change in power supply would influence bitcoin mining greatly. One thing is unquestionably a fact. Not having the market centralized in the hands of large corporations that can afford to mine should be the goal. After all, that is not the vision of the original creator of bitcoin, Satoshi Nakamoto.
