The profitability for mining bitcoin has been on the rise. The increases in prices observed in 2019 have resulted in far more lucrative conditions.
Numerous sources including studies from Binance Research and CoinShares have found the price to be the most important variable for miners. The increases over the past few months have resulted in the profits miners are experiencing hitting nine-month highs.
Prices have already increased by 38% so far in May with highs formed over $8,000. With countless positive developments taking place across the crypto industry, we may only be experiencing the starting phases of such price movements.
Let’s also not forget the halving which is taking place in the bitcoin network next year. These events have historically been preceded by huge price increases and there is no clear reason to believe that the upcoming halving will be any different.
An analysis by leading mining publication MinerUpdate found that halving events often result in increased media attention for the cryptocurrency which can manifest in increased speculation from investors serving to drive the price up.
Recent figures from analyst Alex Krüger estimate the breakeven cost of mining to be $3550. With highs formed above $8,000 in May, that meant a greater than $4,000 profit per bitcoin mined.
However, such profits very much rely on the bottom line. Smaller-scale miners are highly dependent on being able to secure low energy costs and suitable storage facilities.
This can be difficult for small and even medium scale miners. Large-scale miners can leverage their economies of scale to access the lowest energy rates and invest in expert teams to manage large facilities.
Large-scale operations also avail of enormous discounts on hardware through buying in bulk and benefitting from quick deliveries. This means the large farms can quickly replace outdated hardware with the most profitable mining equipment.
Such restrictions on smaller-scale miners prevent most crypto enthusiasts from being able to get involved in bitcoin mining and benefitting from the improved conditions. Only those with access to significant amounts of capital have been able to set up operations in a way that allows them to be profitable in the long-run.
However, there is another option. The upcoming MintMine IEO has tokenized a Canada-based mining farm. The mining farm will be overseen by a professional team that have successfully managed large-scale mining facilities in previous ventures.
Mintmine has secured a year-long energy deal ensuring costs will be kept low and has already purchased the perfect facility for the operation. With conditions for bitcoin mining continuing to improve, Mintmine token holders will be able to expose themselves to the mining world without any of the challenges typically faced by small-scale miners.
If you are ready to tap into the business of bitcoin mining, join our mailing list and stay updated with our upcoming IEO.