The cryptocurrency became a subject that everyone is talking about. Some believe this is a complete scam while others believe it is a prospective industry. Indeed, the current risks do and will exist in the future. However, that doesn’t make the digital currency industry different from any other. Investing in something is always equally risky. It might seem more secure to invest in some other industries at first glance. However, there is much proof that no one is completely safe.
A good example of that we can see during the Coronavirus. For instance, tourism is one of the fields that are most profitable in Italy and Spain. However, because of the pandemic, many hotels, restaurants, and cafes stopped working. This type of change happened only in 2 and a half months. Was someone expecting it? Were entrepreneurs prepared for that?
Logically, the Coronavirus also influenced the cryptocurrency industry. The value of all digital currencies has dropped down. Some experts believe this is the right moment to invest in bitcoinrevolution.org and other digital exchanges. They believe that value will start to grow when things get back to normal.
The more important question that people have now is – How profitable will Bitcoin mining be in 2024? Well, the price answer to this question does not exist. However, some directions we can find if we analyze the current situation and the situation that happened in the past.
If you are a beginner without any knowledge, then profit is something you can forget about. It is impossible to make money by trading or mining if you are not sure how to do that in the best possible way. Education associated with this industry is necessary and the first step that you have to make. Because of that, visiting bitcoins-evolution.com would be a smart move. It is a platform/app that will help you realize how things are functioning in the world.
Before giving you a precise answer to this question, we need to get back to the past. The newbies and less experienced miners need to know how mining made progress through its history.
CPU Mining
These were the first days of bitcoin when the difficulties almost did not exist. At that moment, a lot of miners were competing for rewards and blocks. Working on a private computer with decent features was possible at that time. Yet, that approach has changed relatively soon.
GPU Mining
Graphics Processing Unit or GPU is a powerful processor that has only one purpose. It assists the computer’s graphic card in rendering 3D graphics. Believe it or not, this piece of equipment can execute 800 times more instructions than a CPU. Logically, we are talking about the same period. Thanks to its features, they have been almost completely replaced the CPU mining.
FPGA Mining
FPGA is an acronym for Application-Specific Integrated Circuits. These processors can be programmed to execute specific instructions. They are different from GPU mining because they are not being repurposed for mining. Because of that, they became a more powerful tool.
ASIC Mining
This technology is similar to the previous one. Application-Specific Integrated Circuits are chips that only have one purpose. They were the primary choice of many miners since 2017.
Mining Pools
Well, mining a block has its difficulties that had to be somehow removed. Because of that, many miners started to organize in pools. In other words, they started to organize themselves in cloud mining networks. When a miner that is part of that network solves a block, the rewards are shared by all the members. Logically, the reward that you get is shared in the ratio of how much you work you put into the network.
Cloud Mining
Well, the clouds are there to offer miners the ability to purchase mining rings in a remote data center location. There are many benefits that this type of mining offers. Some of them are – no excess heat and no electricity costs.
So, Is It Possible to Mine Today and Make Profit?
There is a big reason why we went through the development of mining. Indeed, doing something like that is harder than before. The competition is tougher and you truly need to be good at what you are doing.
Certain issues are making the entire process of mining more difficult.
Hardware Prices
As we said, the day when you could use a CPU for mining is gone. Solving the puzzle in the competitive market is tough. Because of that, investing in hardware is a necessity. For instance, ASIC microchips can even cost around $3000. The price can even jump because of constant improvements.
Puzzle Difficulties
Well, let’s use Bitcoin’s protocol as an example. The protocol of this digital currency has adjusted the computational difficulty of the puzzle to finish a block every 2016 blocks. Logically, the puzzle becomes more difficult when more computational power is put toward mining.
Power Costs
Well, these costs depend on where you live. However, being unprepared for them is the biggest mistake of all. You need to count that electricity is something you will spend a lot. Because of that, it is necessary to track these costs and calculate how much money they will take you.
Conclusion
So, using CPU/GPU and FPGA to mine won’t bring you profit in 2024. The rewards since 2017 are too small. If you choose this method, then you won’t even have the chance to cover the electricity costs.
This means that pools, ASICs, and cloud mining have the chance to make your mining profitable. Some people are not willing to invest a lot of money here. There are several reasons for that. First of all, they are not willing to risk and they not sure if the risk will pay off in the end. It is understandable if someone has this way of thinking. However, in that case, a cloud mining rig is the choice that you should pick. There are no electricity bills, and most of the costs are relatively low. Despite that, hardware knowledge is unnecessary.
Yet, education is always necessary! It doesn’t matter how you plan to participate in the Bitcoin mining industry. Improve your knowledge daily even if you already achieve some big goals.
