Warning: Declaration of GW_GoPricing_Plugin_Installer_Skin::feedback($string) should be compatible with WP_Upgrader_Skin::feedback($string, ...$args) in /www/htdocs/w011fd88/cloud-mining-review-com/wp-content/plugins/go_pricing/includes/core/class_plugin_installer_skin.php on line 0
Is Cloud Mining profitable and worth it?

Is Cloud Mining worth it or even profitable?

Is Cloud Mining profitabel or is cloud mining worth it? These questions are often asked. In this blog post we wanna introduce you in the topic Cloud Mining.


Cost factors in bitcoin mining

There are many cost factors that affect the profitability of bitcoin mining. These include initial costs for the hardware and energy costs. On the other hand, the current Bitcoin price plays a key role. Iyengar notes that hobby miners are naturally affected by higher electricity costs. The industrial miners obtain the electricity much cheaper in low cost areas.

At US retail electricity costs of 10 ct / kWh, which is still partially present, a private miner at the current Bitcoin price (2017) needs a year to break Eaven with a 1.6 TH / sec TerraMiner. There are electricity prices in Europe, for example, where the Break Eaven may never be reached. The electricity costs are very high when mining, already one cent per kilowatt hour makes a lot. However, more and more efficient miners are trading again and again, but the private bitcoin miner often follows the trend.

He may spend a lot of money on the next miner, but it will be delivered too late, while in this business, with high volatility and increasing difficulties, every day counts. This is pointed out by Adam McKenna (Multipool). He says the cost of mining has risen by as much as 30% between ordering and delivering a new miner. In contrast, industrial mining offers many advantages.

When is Cloud Mining worth it?

Many people are wondering if Bitcoin mining as a hobby is still worthwhile. Finally, the difficulties increase, the Bitcoin price does not rise every day. There are experts like Ravy Iyengar, who still give good chances to private miners in the summer of 2017. But their share has become much smaller, so Iyengar.

More than 80% of ASIC Miners went to commercial mining companies. The main reason for this is the increased costs for mining, which even a rising bitcoin price can not immediately absorb. But when is Bitcoin Mining worthwhile?

When is Cloud Mining worthwhile for the industry?

First of all, industrial miners have access to cheap electricity, the cost of which in the US is far below the European level, but also significantly below that for US households. The differences are pointed out by Emmanuel Abidun, the CEO of PeerNova.

This company sells its own miners while offering private individuals cloud hashing. The private customers can buy mining shares. Industrial customers pay around seven cents for the kilowatt hour, there are even regions with even cheaper electricity. There, the data centers settle down in order to be able to buy the required power supply cheaply. They also have advantages in purchasing mining equipment, as McKenna notes.

Hobby Miner believes he has a very big delivery date problem, while cloud mining companies can order in bulk and negotiate a delivery date that far exceeds that of private prospectors. This phenomenon exists with every product order that can go to B2C and B2B customers at the same time, only it usually does not matter much.

With the rapid development of Bitcoin Mining, however, some days or weeks of time lead are sometimes crucial to achieve significantly improved efficiency with the latest equipment. Last but not least, industrial miners like CloudHashing are now producing their own ASIC chips themselves. From all these arguments it becomes clear that the private prospector actually has to question exactly: When is Bitcoin Mining worthwhile?

The influence of Bitcoin price fluctuations

The prospects for private mining appear somewhat bleak from the point of view, but from a bitcoin price beyond 2,000 dollars or euros on a bitcoin, they brighten up significantly. Some of the quoted experts – Iyengar said – are more likely to outsource mining to industrial companies or just buy bitcoins, because investing in mining always involves fixed costs, while profit depends on price fluctuations for the cryptocurrency.

It is possible that this view will prevail in the medium term, even if the Bitcoin price continues to rise. According to recent studies in Germany in the electricity costs in this country, the Bitcoin Mining from 2,000 euros for a Bitcoin just so – but maybe not. The miners could now hope for a further increase in cryptocurrency prices as they upgrade their equipment – but they can also become participants in a mining pool or, rather, invest only in bitcoins.

The latter dislikes technology affine friends of the cryptocurrency, they would love to mine them themselves. But against the competition the US electricity price is no match.

Use a Cloud Mining Provider Comparison

If you decide to go for Cloud Mining, please make sure that you use a Cloud Mining Comparison to finde the right Provider with the best Conditions.

We recommend this Cloud Mining Comparison: Best Bitcoin Cloud Mining

I write several articles about the Topic Cloud Mining. I hope i can help a lot of people with my researches and articles about that Topic.