Many people have learned about mining cryptocurrency, at least in terms of Bitcoin mining. This once was a profitable method of earning cryptocurrency, but as the difficulty of mining has increased, it becomes harder. Bitcoin mining is profitable only for the most sophisticated and large, well-organized Bitcoin mining operations. Leading many wondering whether crypto mining remains profitable in 2019 and beyond. The answer is a resounding YES!, if you know what you are doing and take advantage of the expanding markets for cryptocurrencies. For these entrepreneurs, Mining is highly profitable.
There are now over 1900 alternative currencies to Bitcoin and many of them have tremendous marketing potential. Gains of 25%, 75%, 100%, even 500% are still possible. All of the major alternative coins are listed and evaluated here at Bitcoin Bonanza. Just check here and you can see them all in real-time. We spend a lot of time and effort keeping this list up-to-date, but if you know of coins we should be listing, send us a message on the form below. Mining is highly profitable, but you need all the tools. At Bitcoin Bonanza, you find all your tools in one place.
Understanding Crypto Mining
Before you can explore whether crypto mining is profitable, you must understand what the process entails. The most common example of crypto mining is mining Bitcoin, and most other cryptos follow a similar process.
Mining is how the blockchain updates its ledger of transactions. To mine, you must run a very powerful computer and race against the other miners to guess the correct number first. Whoever correctly guesses this number first gets the chance to update the ledger. They also receive a reward in the form of newly minted coins.
One of the most critical parts of the Bitcoin mining process is that you have a better chance of making the correct guess if your computer is more powerful, as this lets you make more guesses in a second. Mining is highly profitable, but you need a powerful miner and low energy costs. You find them all here. Keep reading!
The name “mining” comes from the fact that the process “mines” new crypto into the system. Despite this, the mining is essentially a by-product of the transaction.
Difficulty and ASIC Mining
The struggle for mining to be profitable comes from the way that Bitcoin’s mining rules are set up. Satoshi Nakamoto set it up, so the answer to the mining math problem is harder to guess when there is more mining power in the network. This means that when there are more miners, it becomes harder to solve the problem, and if there are fewer, the problem is easier to solve.
This was Nakamoto’s method of ensuring that inflation stayed in check. The goal is that a new block gets added every 10 minutes, on average.
That set-up for mining difficulty combined with the prevalence of miners today to make Bitcoin mining very hard. In 2009, the average person could use their computer’s CPU to mine Bitcoin. As more people started mining, it got harder, and people switched to GPUs. In 2013, ASIC miners arrived due to the difficulty of mining.ASIC mining is now the standard, and those who do not have ASIC mining equipment will not be able to make money from mining Bitcoin as the puzzles are too hard for the average computer to solve. If you want to obtain the most advanced and sophisticated equipment go to our partner MINING BONANZA where over 3000 different miners and accessories are listed, new and used. For a modest investment of about $600, you can start today! For US taxpayers there are tremendous tax advantages owning and operating crypto mining machines. Read about these opportunities at TAX BONANZA, where you get step-by-step instructions on how to buy and operate crypto miners where the tax savings pay up to 52% of the cost and the returns are in excess of 150% per year.
Mining Pools Increase Profitability By Pooling Hash Power
Mining Pools Even the GapOne way that individuals and small companies can participate in the Mining Bonanza is to turn their miners over to mining pools. Mining pools are groups of miners who combine their power to improve their mining effectiveness. If a pool wins the blockchain reward, it gets spread across the members, with each receiving compensation proportional to their contributed mining power. This gives everyone a chance to mine Bitcoin, even with minimal computing power. Mining Bonanza contracts with several pools and has the ability to switch quickly between pools depending upon the pool’s profitability in mining the most profitable cryptocurrency.
Reward Per Block
The reward plays a role in the profitability of mining as well. For Bitcoin, the current block reward is 12.5. In 2020, it will be cut in half. Every 210,000 blocks, the rate is halved. Different rewards are given to successful miners of the 1900 alternative coins to Bitcoin. Many of these coins with a capitalized value in the billions and hundreds of millions are far easier to mine than Bitcoin and thus more profitable. A favorite tactic of successful Bitcoin miners is to mine these highly profitable cryptocurrencies and then exchange them for Bitcoins when they want to convert to dollars or euros or a major currency. Another strategy is to buy a crypto coin on one exchange and then sell it on another exchange for a higher price. Often one can employ bots that spot these price differences and make the trades automatically according to set conditions by the trader. Annual returns in excess of 300% are not unusual for these miners who are learned in what is termed “crypto arbitrage.”
Remember that the mining difficulty for Bitcoin depends on the currently active mining power within the network. Almost all altcoins follow the same process.
The hash in mining is the problem that your computer must solve. The hash rate is the number of guesses your computer will make each second. Hash rates are measured in MH/s, GH/s, TH/s, or PH/s (mega, giga, terra, or peta hash per second).
Electricity Cost and Power ConsumptionYou also have to calculate the cost of electricity since using so much computational power uses up a great deal of electricity. The cost of the hardware to mine crypto along with the cost of electricity is vital to profitability. It takes an estimated 35,000 KWh to mine one Bitcoin. If you are paying .15/kWh that’s $5,250, which is the average cost in much of the USA and in Europe where electricity costs can be high even for industrial size users. Mining Bonanza’s data-mining centers utilize orphan natural gas to power their miners at an average cost of .03/KWh or about $1,050 to mine one Bitcoin. Learn more about these cost advantages at Mining Bonanza’s Data Center
Power Use of Miner
Another major consideration is the power use of the miner. MINING BONANZA is the exclusive distributor of the BONANZA SUPER EXCEL MINER that mines at 100 TH/s and use just 800w of power. This proprietary miner connected to a Mining Bonanza datacenter with an electrical power cost of $0.035/kWh will pay for itself in less than 6 months, and, based on an after-tax cost. will pay for itself in less than 3 months.
Price of Bitcoin
Mining profitability also depends on the current value of Bitcoin or any alternative currency you may choose to mine, and how you expect that to change in the future. Go to our Current Coin Price and History Center for real-time prices on 1900 currencies and history and information on each coin. Keep in mind the price of Bitcoin, as well as the altcoins, are highly volatile, meaning they increase and decrease in sometimes amazing amounts. When the price of Bitcoin decreases many mining operations become unprofitable and thousands of mining rigs shut down. As the number of miners shut down the hash rate decreases, which increases the profitability of mining operations with lower power costs. Mining Bonanza estimates its mining operations are profitable even if Bitcoin were to drop from $9,000 to $10,000 range where they are as of this writing to as low as $700. A lower hashrate means the estimated 35,000 kWh ($ at $0.03/kWh)for one Bitcoin would be reduced to as few as 12,000 kWh.
You must account for pool fees if you are in a mining pool. Most pools will take about 2 percent of your earnings as payment.
Set-up, maintenance, repairs, supervision, insurance, accounting are all cost factors you must consider. MINING BONANZA provides all for an inclusive charge of 8%, including pool fees. Most importantly, it includes access to cheap power that ensures your miners always produce a profit.
Use Our Online Online Crypto Mining Calculators
As it is difficult to compare these factors, we give you access here to a cyber-currency mining calculator, which you can find at Bitcoin Mining Calculator. Here you will find our Bitcoin mining calculator, instructions and guidelines on how to determine if you have all the factors necessary to make cyber currency mining profitable for your new business. Here you enter factors like has rate, pool fees, power in watts, power cost, and hardware costs. These let you enter things like your hash rate, pool fees, hardware cost, power in watts, and power cost. The calculator automatically fills in the difficulty factor, block reward, and exchange rate, which are drawn from current databases. This calculator will convince you that with the right equipment, management, and low-cost energy mining is highly profitable.
Once all the relevant information is entered the calculator will compute the potential profit for mining each currency. There are separate calculators for Bitcoin and the major altcoins, just click on the link to go to each calculator. If you do not see your favorite coin in our list send us a message and we’ll create it and send it to you without charge.
Mining Altcoins Often Are More Profitable than Bitcoin
Bitcoin is the standard of cyber currencies. It is the most fungible and is listed on over 240 exchanges worldwide. Bt it is not alone and only constitutes about 50% or the total value of cyber currencies. We provide here at Bitcoin Bonanzas List of Over 1900 Alternative Currencies with prices in real-time and information on each including the exchanges on which they trade. Because of the challenges associated with making a profit while mining Bitcoin, many people turn to other altcoins.
The issue with mining altcoins is that they have much lower trading volumes which may make it more difficult to cash out your profits from mining them. This also leads to reduced interest in mining, lower hash rates, and often greater profitability.
The factors in determining if mining altcoins are profitable are nearly identical to those for Bitcoin, with some exceptions. The most important factors include the mining algorithm, the market price, the trading volume, power consumption, hash rate, and how many exchanges it is listed on.
Altcoins to Consider Mining
Mining altcoins can be extremely possible but you need to become either a market expert or hire or retain someone who is. MINING BOANNAZA provides this service for a set fee of 20% of mining income. Similar to the fees charged by hedge funds you only pay if your mining efforts are profitable. This is surely the safest manner in which to achieve mining success.
At the time of writing, those who want to mine viable altcoins include Ethereum, Ripple, Bitcoin Cash, Litecoin, DashMonero, Dogecoin, and Zcash. Bitcoin Gold, Zencash, or Zclassic. Others that you may want to mine include Grin, RavenCoin, Ethereum Classic, andElectroneum. Visit BITCOIN BONANZA’s WHAT TO MINE for up to date mining opportunities. Here you will find mining opportunities that are returning as much as 800% on an annualized basis, but not without some risk, which is why you need 24/7/365 experts to guide you. You will find they earn their fees as the profits consistently roll-in.
Conclusion: Mining is a profession and a business enterprise, not an occupation for hobbyists. Uncle Sam will pay for much of the cost of entering or expanding this lucrative business and expert advice is available from MINING BONANZA, where you can purchse or lease the most powerful ASIC miners powered by the lowest energy costs in the world. There is a risk, but there is also an outstanding opportunity in the world with low-interest rates making it difficult to earn income in an increasingly inflationary and risky economic environment. Mining is highly profitable in 2019 and will likely become more profitable in 2020.