The year 2017 saw a tremendous amount of hype drawn by the term “Bitcoin” and crypto-markets filled with an equally exceptional action-packed activity. Ridiculous amounts of investments were hurled towards different cryptocurrencies as Bitcoin touched its all-time high of about $20,000 USD. More and more people jumped on to the bandwagon in hopes of scoring high profits, including many enthusiasts who thought of mining Bitcoin tokens. However, what unfolded afterwards is a frightening tale of its own; As the whole crypto-world took a massive hit and the markets crumbled down like a house of cards.
However, living up to its unpredictability, the crypto-markets are seeing another wave of rising charts. As the monumental event of Bitcoin halving, which is set to happen in May 2020, draws closer, Bitcoin starts to showcase a remarkable upward trajectory and soars high in terms of price valuation. The analysts have hinted towards a very bullish market in the coming days. How high will Bitcoin go this time? Will it manage to break its all-time high value? These are some questions that intrigue the crypto-community at large. But another question that warrants a reaction of its own, is the fact that mining Bitcoin will turn profitable once again as Bitcoin’s rising price starts to out-worth the mining expenses.
The cryptocurrency mining industry is an industry (a billion dollar one) where individuals, groups and businesses have to compete against powerful mining equipment to stay relevant in the network. What happens is that mining rigs solve complex mathematical equations, and whosoever manages to solve it first, earns the block reward. In order to enhance their computational powers, people started to buy special equipment, ASICs and mining rigs. These mining machines had a competitive cost of anywhere between $3,000 to as much as $10,000. Antminer R4 costed about $1,000, while Antminer S9 and DragonMint had a price tag of around $3000.
Mining profitability isn’t all about the equipment; There’s a delicate equilibrium that needs to be achieved between the cost of mining, and the price of earned Bitcoins. For the past year, Bitcoin showcased a rather stagnant value which did not deem it feasible for many miners to earn any profit. To put things into perspective, machines like Bitmain’s AntMiner S9 or Canaan’s Avalon A851, took a toll on your bank account, even before they consumed a high amount of power to get to work and produce Bitcoins. Mining had not been worthwhile in places, where electricity charges were quite high, as energy consumption commenced the profit margin in many cases.
Optimizing the settings of your equipment or even joining the computational power of your equipment with other mining pools can allow you to earn better profits. CoinFly is offering a platform that can help you set up your mining rigs, and start minting high profits even if you have little or no knowledge about the health of your equipment and how to set it to yield the best results. Likewise, it also provides high-tuning features for professionals and offers automated support for crypto-enthusiasts who are new to the mining process.
Coinfly’s platform also features some tools which allow the miners to have complete command over their mining process and offers honest mining pools that users can join to earn higher profits. Also, they opened a beta version of CoinFly PPS ETH mining pool with zero fees, DDoS protection, and professional consultation of their specialist in 10 minutes. They use Microsoft Azure to ensure the seamless work of the pool.
However, with the current ongoing situation, a ray of hope has emerged as Bitcoin has gained momentum. The rising price is likely to offset the mining expenses that are incurred during the process. Additionally, the world has seen oil-prices going negative recently. This will indirectly set a precedence of cheaper electricity as fuel prices dropdown. To top it off, Asian markets will see a period of rainy season in the coming days. This means, their hydropower capacity will increase and the electricity prices will go down, although, for a short period. This seasonal spike, along with other favorable factors, will lay the foundation for increased Bitcoin mining activities.
As Bitcoin starts its rally to break its first hindrance at $10,000 USD by the first half of May, the older mining equipment will once again become relevant. The returns will outweigh the expenses that are incurred during the mining process. One of the biggest bitcoin mining areas, China will see its electricity prices dropping below 3 cents per kWh, and if Bitcoin keeps on soaring at its current rate, older mining machine variants like S9 and DragonMint can allow 20-30% profit margins. The profit margins can be as high as 60% for latest machines like Antminers S17 and S19 series.
Bitcoin mining is a dynamically changing game, where one has to take different factors into account. Multiple cost/benefit analysis are required to decide it’s worth for a miner. However, the rising trajectory of Bitcoin will potentially bring the old mining machines back into business.
