Whether you’re a seasoned investor or you’re just a fan of Internet culture, no doubt you’ve heard about Bitcoin, one of the world’s leading cryptocurrencies.
Maybe you’ve even heard stories about people like Erik Finman, who became a bitcoin millionaire at the age of 18 after investing only $1,000.
But is bitcoin mining profitable for the average person? It’s a tough question, and one that might not provide the magic answer you’re hoping for. To find out, make sure to keep reading as we explore the world of this exciting new form of currency!
No doubt, you’re curious to find out how to mine bitcoin. But before you do, there’s something you should know.
Mining bitcoin can get quite expensive. According to one study, a single bitcoin costs $4,161 to mine. In comparison, an ounce of gold costs a little over $900.
So what’s with the prohibitive cost, anyway?
It mostly has to do with the processing power required for a bitcoin mining machine. You’ll need a pretty powerful computer to start mining, so don’t get your hopes up if you’re thinking of using your desktop PC. Instead, you’ll likely have to build a dedicated machine which you’ll have to leave running almost 24/7.
This brings us to our next point — energy consumption.
A study from the University of Cambridge found that bitcoin miners will account for almost 0.6% of global electricity consumption.
According to standards, it costs around $4 to mine bitcoin per day. That’s an extra $120 per month to your bill.
Buying vs. Mining
If you don’t have the capital to create a bitcoin mining machine (or you don’t want to watch your electrical bill skyrocket) there is another way to get into the crypto game. Some locations like gas stations, vape shops, and coffee shops now offer bitcoin ATMs.
In addition to offering quick, easy ways to purchase bitcoin and send it to your wallet, you can purchase and deposit cryptocurrency in someone else’s account. Likewise, you can also use these handy machines to sell off bitcoin.
You can check out these bitcoin atm locations to find one near you!
Using a bitcoin ATM is simple and fast. All you’ll need to get started is a location near you and a digital wallet.
It’s clear that bitcoin uses a ton of energy to mine. But isn’t it all worth it if you make your money back and then some?
Absolutely! Of course, that’s depending on the market, though.
Bitcoin trends are notoriously finicky, making an investment financially dangerous for the average person.
It’s not uncommon to see bitcoin’s value crash by as much as 30% in a single weekend.
Is Bitcoin Mining Profitable? A Few Final Words
So, all of this to ask, is bitcoin mining profitable?
It depends largely on economic trends, as well as your available mining resources. If you’re thinking of building your own rig, don’t forget to account for the cost of materials as well as the added electricity.
For the average person, though, we’d say steer clear of mining. If you want to get into the crypto game, consider creating a wallet and buying and selling through a crypto ATM.
For more info on all things crypto, make sure to check back with our blog!