It’s virtually impossible to make a profit from Bitcoin mining at home anymore…
by Manoj Sharma for CNR
Plenty of things have changed in the world of Bitcoin mining over the past months. Using computers to mine Bitcoin has become a worldwide business, but it’s one that appears to have peaked. Sadly, for at-home miners, Bitcoin mining is no longer profitable, it seems.
Currently, anyone can generate Bitcoin with their computer. The more powerful the computing power is, the better the chances of success. Computing power can be bundled by joining a mining pool and rewards can be distributed accordingly. The theory still exists, but the amount of profit generated from the process has taken a dip over the last few months in particular. To the point where at-home Bitcoin mining is unprofitable for most people.
There are multiple factors influencing this development, including the increasing hashrate of Bitcoin mining and growing competition among miners. In addition, competitive hardware like ASICs is far more powerful than regular computers, as they have only one purpose: mining Bitcoin as efficiently as possible.
Also, there is the price of electricity. Miners don’t benefit from the electricity prices in most nations. Therefore, in order to offset the mining cost, they need to generate more Bitcoins, which is no longer possible nowadays. Diar, an analytics firm, confirms as much, and there is no instant improvement in sight.
Another biggest fear is how Bitcoin will become centralised. Institutional firms will contribute most of the hardware, thus exerting a degree of control over the network, mainly when the collision occurs. As of now, it is not a problem, but the threat still remains in place. Many entities are setting up mining operations in countries where electricity is cheap. Although that too comes with an environmental impact.
These firms can maintain a decent profit compared to at-home miners, who pay more for electricity than they earn from Bitcoin mining. That is, to a limited extent, because of the declining value of Bitcoin. This can change if and when the market rebounds, but more people are exiting the mining world in the interim…