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News / January 3, 2018 / Comments: 0

Is It Late To Start Mining?

If you entered the cryptocurrency world before 2016-2017, then you probably tried to mine a coin or two. There are thousands of people who remember how the things were and how fast everything developed 4-5 years back. Nowadays, it is pretty normal to hear about somebody having a mining farm but a couple of years ago there was hardly a person who could imagine how far these things would go.

Before the majority of people began to hear about cryptocurrencies, mining was easily accomplished using an ordinary PC or a laptop. Back than, early miners could use CPU (central processing unit) of their devices. Then GPU (graphics processing unit) took its place instead of CPU. Then the use of ASICs, that are created utterly for mining purposes, made previous approaches almost obsolete. Finally, it has come to us in the form of mining pools (a sort of community where people gather their processing power over a network and share the reward according to their contributions).

If to compare mining to its early stages, the process and effective means of performing have changed. However, there is no clear-cut answer to whether it is late to mine. We believe that the answer is: no, it is not late to start mining right now! Mining is still a highly beneficial occupation but there is a number of things to consider.

 

Mining Costs

And this is probably one of the first things to look into when deciding to start mining. Usually, taking care of pretty expensive mining equipment, people underestimate or do not pay enough attention to the cost of electricity. It takes more and more efforts to get a decent share of the reward as mining spreads further increasing competition. So the cost of electricity should be of great importance to you. Also, larger facilities, like mining farms have more chances to negotiate a suitable electricity deal than an individual operation.

Lots of miners these days decide to turn to alternative electricity as standard prices for a regular user are no longer easy to cover. Using solar panels to at least supplement some of the energy keeps getting high popularity, while in other parts of the world (notably China) mining facilities are built around river power plants. In Iceland, mining farms are fueled by using thermal energy.

Deciding over the mining gear costs you should choose between GPU and ASICS. GPU tends to be more liquid. There is a much bigger demand for them than it is for ASICS, which allows you to sell them faster and better than ASICS, which can become obsolete quite fast.

Mining expected ROI

Nowadays the network difficulty has increased greatly. There was a time a single miner could discover a block and gain the reward of 50 Bitcoins. As the current price of BTC is around 15.000 that would mean precisely $750.000. An incredible amount though not possible for a single miner to reach anymore. The Bitcoin block mining reward halves every 210,000 blocks. So as of now the reward is 12.5 Bitcoins, or $187.500 for a block and this is still a very good deal. And this amount can be distributed among many people.

That is why the idea of mining pools is so attractive currently. Here is a simple calculation: even if your part in a block discovery is 0.1 % that is $187,5. However, to be able to perform those results, you should be ready to seriously invest in your mining gear at first. We are not talking about professional mining and huge revenues it gives. Just take care of the place with low electricity costs and a decent amount to invest, then you will be able to see a significant revenue of the couple of hundreds per month.

 

Mining Caveats

Before diving into mining occupation you should note a few important things:

  • Your profits cannot be guaranteed as due to the decentralized nature of cryptocurrencies there is no central authority that controls the process of getting your profits.
  • The market volatility. Bitcoin and the whole industry has risen sharply. The market prices have increased greatly. However, markets are ruled by speculation, so what is gone up may also go down eventually. Better to consider this first.
  • As described above, individual mining could bring you good results years ago at the very dawn of Bitcoin. Now this method is no longer beneficial. If you are serious about this, consider joining one of the existing mining pools by contributing your hashing power and share the rewards.
  • There are few things to know before joining a mining pool. Make sure the mining pool has a transparent communication policy and that you get all the necessary support. Also, a proper connection should be on top if you do not want to end up losing tasks and get your hash power wasted.

Despite the large number of existing pools, good and really supportive mining pool is a rare thing to find. We have created uCrypto pool as an example of what every miner should get from such facility. Try us to get the most profitable algorithms, 24/7 support, best commission on the market and fast payments!

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