HomeNewscoinquora.comThe Relevance of Crypto Mining in 2022

The Relevance of Crypto Mining in 2022

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The first cryptocurrency is recovering now, as last month its price updated the minimum at $33k since July 2021. Despite the growth in recent days, the cryptocurrency continues to trade 35% below the historical maximum of $69k, which was set in November last year. Bitcoin is currently trading at $41-42k. On February 4th, the price of Bitcoin again exceeded $40k.

The profitability of mining also decreased along with the price of Bitcoin. The threshold for reaching the breakeven point for each miner is different, however, it depends on the generation of equipment, energy efficiency, and the cost of service. At the same time, it is important to note that large mining companies will not stop mining cryptocurrency even if they operate at a loss.

Even in the event of a “crypto winter”, miners will expect the subsequent growth of bitcoin against the background of the next halving. At this point, they will be able to recapture losses and make a profit. To earn as much as possible in the next phase of BTC growth, large miners will mine cryptocurrency even during periods of actual loss of business.

Bitcoin hash rate updated its all-time high on January 20th. The growth of the hash rate indicates that the miners are increasing their computing power. The positive dynamic of the indicator shows that BTC mining remains profitable for the majority of market participants.

Experts believe that mining becomes unprofitable when the Bitcoin price falls below $18k. However, this is also affected by the price of electricity and the power of the equipment: everything is simple here, the more powerful it is, the more income the miner receives. The mining break-even point will be between $9-10k using the latest hardware available on the market. Even in the most pessimistic scenario, no one expects digital gold to fall that much, moreover, industry leaders expect Bitcoin at $100k this year.

It seems that mining remains a profitable activity in 2022, but the barrier to entry in the industry continues to rise. Private mining will be replaced by industrial companies every year. Experts believe that it is most effective to enter the mining market with at least 50 units of modern devices, the total cost of which will be about $500,000. It will allow you to have a stable and high income, and to easily repair broken equipment. The lowest barrier to entry in the crypto mining business ranges from $7-8k. This money is enough to purchase ASIC miners and put them in the data center. However, organizing your farm will require more funds, as it is necessary to take into account the costs of maintaining the “mining farms”, maintaining equipment, and paying for electricity.

Does this mean that mining in 2022 won`t be affordable for everyone? Of course, it does not. Everyone can use cloud mining services: you “rent” hash power from miners who are located in a remote, cool place. The cloud mining company takes care of the maintenance of the miners, and you share the income from this operation by paying a commission.

It is difficult to recommend a specific cloud mining company as these companies are the ones most often involved in scams. However, there are some good options. One of the industry leaders is GreenHashes. The specificity of the company is the use of only renewable energy sources. With the help of wind turbines and solar panels, the company manages to generate electricity and provide eco-mining machines affordably and sustainably. “Green” mining is a choice of 2022. The company has data centers in cold places with low electricity prices. In addition to the newest equipment, it creates perfect conditions for profitable cloud mining.

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“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel

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