Bitcoin Mining Prices Are Going Steeper Cutting into the Profits

Bitcoin mining prices are escalating and today is the most expensive way to do a business. However, the mining costs are not similar in all countries. Venezuela is the cheapest country where it could cost a little over $500 to mine bitcoin. South Korea is reckoned to be the costliest with a figure of over $ 26,000.

 

Cryptocurrency and Bitcoin mining is the most talked about a topic not only in the business circles but even at homes. People are curious to learn how bitcoin works.  Though the value did dip a little in the early months of 2018, it has again recovered and continues to generate interest among the people.

  

Bitcoins are built when a miner (node) on the bitcoin network is able to complete a block faster than the other miners and add it the bitcoin’s blockchain. A node is a powerful computer running the bitcoin software (which can be downloaded free) and it contributes to keeping the bitcoin running by partaking in the relay of information. It requires a lot of electricity and storage space on the PC. The bitcoin transactions are spread in the network by the nodes.

 

The mining nodes i.e. the miners solve complex mathematical puzzles which are within the bitcoin program. The solution to the puzzle is a number. The speed of the machine plays a decisive role in the success of a miner. The first miner that gets the correct hash announces its success which enables the other miners to stop working on that block and start a new block.

The bitcoin mining prices can vary from one to another since a lot of factors are taken into consideration while calculating the costs. The foremost factor is the cost of a computer and other infrastructure. The mining rigs need to be updated with new technologies as the mining difficulty grows harder. Another factor is the energy consumed. Every time an answer is guessed, energy is consumed. The more time the system is on, the more is the heat generated. The system requires cooling solutions. This again increases the cost. Then the electricity costs. They vary from one region to another which again is an influencing factor when calculating if bitcoin mining is lucrative or not.

 

Miners were very happy in the last quarter of December 2017 as clear profits were being experienced with bitcoin nearly touching $20,000. However, it slid to $8000 in January 2018 and is hovering around that since then.

 

Recently, Elite Fixtures had conducted a survey in 115 countries to find out the bitcoin mining prices. It used certain standards compiling data from 3 mining rigs and average electricity as on January 2018. It is gathered bitcoin mining in South Korea is the most expensive costing $26,000 while it is most profitable in Venezuela with the cost as low as $530. 

With cryptocurrency mining increasing, miners look for the best hardware to beat the competition. This has increased the need for computer components that had more power to mine better while consuming low energy. Suppliers are unable to match the demand in delivering the components. But those using the graphics cards face the issues of shortage. Miners need powerful rigs and the shortage is creating an increase in the costs. This again has an impact on bitcoin mining prices.   Specially designed ASIC mining rigs are being used as they are powerful and energy efficient but costs are high.

 

Customers that wish to invest and earn in bitcoin mining without investing in the high-cost hardware can consider cloud mining. The benefits of the cloud are many and the same benefits apply to bitcoin cloud mining. It is a system of using shared processing power that is run and managed in remote data centers. The users only must invest on a PC with internet connection. In addition to nil investment on infrastructure, users save on electricity costs since mining is done elsewhere. The technical aspects including maintenance are the responsibility of the cloud mining provider. The risks of selling and upgrading on hardware will not be there.  The miners will need to pay a processing fee to the service providers.

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