A mining class is the use of the resources of your computer or a device specifically designed for this to create new cryptocurrency units.
One of the most popular such currencies is Bitcoin, the value of which now reaches 2.5 thousand dollars. You can get a certain share of this currency by finding a new block of data confirming the transaction. This requires the use of special mining software , which is a way to make money on mining and get passive income. However, the time when the person involved in this (the miner) could earn millions of dollars has passed. And the profitability of mining cryptocurrency has decreased markedly.
How to make money on mining and profit margins
The main question of a novice miner is how much money can be earned on mining and is it worth starting seriously in this way of earning? And domestic miners may still be interested in the legality of using cryptocurrency in Russia. The answer to the last question is positive – despite attempts to ban bitcoins, they can still be used in the country.
The amount of income depends on the chosen method of mining:
- cloud based on the provision of computing power for rent, requires a minimum of initial costs from the miner and provides a relatively small but steady profit. The recoupment of invested funds ranges from 2.5 to 12 months , depending on the chosen currency. That is, by spending about $ 2,000 on cloud services, you can earn from $ 167 to $ 800 per month;
- independent mining, which requires large initial costs in order to buy the so-called ASICs, the price of which starts from $ 500 and ends at $ 10,000 . To organize mining at a serious level, it will take at least $ 2,000 , and the payback period for Bitcoin cryptocurrency is on average 6 months .
The advantage of the second method is a higher level of reliability of earnings and a shorter payback period. In addition, rental companies can increase the cost of using the cloud, and the cost of self-mining will not change. The disadvantage of such mining is the need to permanently include equipment in the network, which also requires additional energy costs.
Expert opinion – Prospects for the development of cryptocurrency
How can you comment on such a rapid development and appreciation of cryptocurrency? Which areas of the market already use payment in cryptocurrency, and which areas will soon switch to this payment method?
Comments by Alexander Bespalov, Senior Partner, Bespalov & Partners Consulting Group , CEO Cryptocompany.Ltd
“The cryptocurrency market will develop, no one has any doubts about this. Even experts who consider this market a “bubble” are inclined to believe that in order for the bubble to blow off, it needs to reach a certain level, and this will not happen soon.
Now the market is growing every day, all new investors and users come – and so it will continue for at least 1-3 years.
In our investment-related projects, we expect to avoid serious shocks for at least 1.5-2 years in this market.
Such a strong interest and growth rates of all cryptocurrencies is associated primarily with the policies of many states, which from the “prohibitive” has changed over the past year for the better – the direction of legalization. Full recognition of Bitcoin as a means of payment in Japan gave a serious impetus to other countries to move towards the official permission to circulate cryptocurrency.
In Russia, it is quite difficult to accept payment in bitcoins due to legal uncertainty. Now lawmakers are discussing the possibility of adopting the necessary laws that will regulate the crypto market and allow entrepreneurs and users to fully take advantage of all the possibilities of cryptocurrencies.
It is necessary to understand that so far all the statements even from large companies like Burger King, that they plan to start accepting payment in cryptocurrency are more PR than reality. Until the relevant laws are adopted, Bitcoin circulation in the Russian Federation will be seriously limited. ”
What does profit depend on?
The answer to the question, how much can you earn on mining, can be depending on three main factors:
- the type of cryptocurrency, the mining profitability of which may increase or fall over time;
- electricity prices. After all, electricity is one of the resources on which mining works. The lower the cost of 1 kWh, the more profitable the business will be;
- mining difficulty. The more miners mined cryptocurrency, the harder it is to get one unit. And the equipment will pay off longer.
Another factor is cryptocurrency, which can, with time, increase and decrease. In the first case, the miner’s earnings could be large – but more people will begin to mine the expensive currency, increasing the complexity of its mining. In the end, it turns out that the increased value had little effect, and the income remained at the same level – but the already mined currency can be sold more expensive.
Is it possible to make money on mining?
Summing up, it is possible to draw certain conclusions about whether it is possible to make money on mining, and what amount will be received by the earner. It is worth noting that even the reduced profit level still makes it possible to consider this method of earning the most profitable of all the passive options. And, starting to mine now, you can expect to receive a net profit in a year. Although this will have to make certain investments. Another, more risky method of making money on a cryptocurrency is buying it in anticipation that the price of Bitcoin, Monero or Dash will increase.