The popularity of Bitcoin and other cryptocurrencies had a great rise in 2015 when the price of Bitcoin was around 20,000$. Since then, more and more people are interested in this type of digital asset. There are two main ways of getting Bitcoin, trading, and mining. While trading is the easier way, you are always at risk of losing profit, since Bitcoin and other cryptocurrencies are fluctuating on the market.
There are a great number of exchanges where you can buy or sell your digital money. Also, there are platforms, like BitcoinBanker, where you can become part of the Bitcoin Community, where you can trade and gather great profit. Furthermore, Bitcoin is already accepted in many countries, and people see it as a standard method of payment in the future. Currently, there are over 7,000 ATMs all over the world where you can exchange Bitcoins for other currencies.
On the other side, mining is a much more complicated process, but, under the right circumstances, you can acquire big profits by this method. While it was very popular to mine Bitcoins in recent years, the question is, will that method still be profitable in 2024? We will deal with this topic a little more in this article.
Mining is a process of creating Bitcoins, with the use of high-end PCs and with the help of complex algorithms and blockchain technology. Blockchain is an advanced way of coding, which makes cryptocurrencies secure, with no chance of cyber-attacks or stealing data from your e-wallet. When the Bitcoin was introduced back in 2009, it was priceless, but many people saw its potential and started mining it.
In the year 2013, it reached a value of 1000$, while it broke all records two years later. During that period, mining was very effective, since there were not so many Bitcoins on the market, and the process was much faster. However, the process is slowing down over the years, until it reaches the maximum of 21 million units mined.
During the process, the machines are creating blocks of codes, that are being used for building the Bitcoin itself. The owners of equipment are providing this technology to exist, and, in return, they are collecting tokens, which can be transformed in Bitcoin. However, the amount of tokens is decreasing by half every four years, in a process called Halving.
What is Halving?
AS we already said, halving occurs on a period of four years, when the amount of Bitcoin that miners get in return is being cut by half. In first, the award was 50 Bitcoins in 2012, then 25 after 2016, and after the next halving, you can get 12.5 Bitcoins as a miner. Also, you should know that for successful mining you will need a lot of expensive equipment and resources, higher electric bills, and some other expenses, and that is the main reason why people are not sure about mining still being profitable after the halving in 2024.
When Bitcoin occurred on the market for the first time, and several years after that, you could mine it with a basic home PC, and it was highly profitable during that period. However, after several updated in security and quality of codes and systems, mining requires high-quality equipment, especially graphics cards, for an effective process. That is the reason why most of the Bitcoins are mined in big facilities today, and some people invested millions to effectively create this cryptocurrency.
Is it Worth to Mine Bitcoin Today?
First of all, you need to be aware of several things before you even think to start mining. There is a great rivalry today, where great mining centers are competing over who will manage to mine more. Also, it is much more difficult, with a slower process, and higher expenses for equipment and electricity. The computer equipment became much more expensive after 2015, and since then, the graphics cards, processors, and motherboards are valued at least twice more on the market.
In that matter, we cannot guarantee you to gain profit from mining, especially after halving. However, if you are willing to invest a lot of money in the mining center, your chances are still good enough to earn much more than you invested. The most important thing is to do a proper analysis of the mining system and the market.
The Bottom Line
The process of mining will never be as profitable as it was between 2012 and 2016. However, if you are someone who wants to invest a great amount of money in proper equipment, you can still be able to earn this crypto. On the other side, the great popularity and competition on the market made it almost impossible for people with average equipment to mine it. However, if you want to try to mine Bitcoin from your home, you should be aware that your electric bills might become higher than its value, especially now when the price of 1BTC is around 9,000$. Maybe it would be smarter to buy Bitcoin over some platform, and trade it on a market, which is the most popular method today.
Like with Forex and other types of online trading, you can never be 100% sure that you will end up with a profit. What is crucial in this kind of business is the proper analysis and good strategies on when is the best time to invest. Many experts from all around the world are suggesting people that now is the perfect time for investing in cryptocurrencies, especially Bitcoin. According to their projections, the price of Bitcoin should return to the previous maximum of $ 20,000 by the end of the year, and some of them suggest that it could be significantly higher.
Also, if that happened, and the price again became much higher, it will become much more profitable to mine this cryptocurrency, even if you don’t have a big center and lots of computers. Many people, that was not so interested in cryptocurrencies before, became curious about Bitcoin during the lockdown. This one, and many other cryptocurrencies, represent a great way to deal with a possible economic crisis.