How to Keep Crypto Mining Operations Profitable

2019-12-11 13:38

Known as digital gold, Bitcoin (BTC) is the most well-known cryptocurrency. Since the moment the Bitcoin network came into existence back in 2009, this crypto coin already had a value associated with it. But how are new coins generated? Bitcoin mining is the computational process that solves mathematical calculations to verify transactions in the network – and to reward participants with new coins. 

At first, the mining difficulty was fairly easy and people could mine Bitcoins with little to no computational power on a desktop PC. However, as more Bitcoins are mined, the network’s difficulty and the computational power that is required is increasing.

In 2009, Bitcoin rewards were 50 BTC per verified block. Today, it’s only 12.5 BTC per block and it will continue to decrease to 6.25 BTC per block by the end of the second quarter in 2020. 

But besides this network difficulty, there are other aspects of crypto mining that determine its profitability. 

What determines the success of crypto mining?

In a large part, electricity: Because the crypto mining hardware requires so much power to solve mathematical puzzles, the cost of electricity is the key factor for profitability. One single miner can execute billions of computations per second.  Electric power is not only needed to operate the mining rigs but may also be necessary to cool them adding approximately 30% to the electric bill. The cost of electricity can easily comprise well over half of the cost of mining. 

This is the reason that today over 60% of the crypto mining capacity is concentrated in China, where the environment is cool, and the cost of electricity is among the world’s lowest. 

In order to mine profitably, it is imperative to choose a location where air conditioning is not required, and you secure stable, long term electricity pricing.

These economic and technological challenges have led to the concentration of mining power in a few companies offering industrial-scale mining solutions. 

BitPlus is a North American leader in crypto mining. By having developed state-of-the-art technology that makes use of stranded natural gas and converts it into electricity at low prices, coupled with surplus NG and electricity, the company is able to compete with the Chinese incumbents. This technology is applied to a new concept of cryptocurrency mining developed by BitPlus known as Mobile Mining Rigs (MMR’s). These mobile crypto mining facilities can be transported anywhere and have everything necessary to perform above average under the most extreme conditions. Each MMR is equipped with its own cooling system, mining hardware, power generation, and internet connectivity. Tests have shown a 120% performance advantage over other mining rigs. 

BitPlus is now launching the Alpha Project to become the largest crypto mining operation in North America by combining all aspects that make BitPlus crypto mining process more profitable than others. Investors can now join the Alpha Project and become part of the future in crypto mining.

Website: http://alphaminingproject.com/

 

The post How to Keep Crypto Mining Operations Profitable appeared first on NullTX.

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0413084 (-100%)

crypto bitcoin back network came 2009 existence

crypto bitcoin → Результатов: 126


What Mark Carney’s Rise to Prime Minister Means for Bitcoin and Canada’s Crypto Future

Mark Carney, Canada’s new Prime Minister, has been a vocal opponent of Bitcoin for years. His stance could lead to tougher regulations and increased support for a digital Canadian dollar. Crypto investors, take note! The post What Mark Carney’s Rise to Prime Minister Means for Bitcoin and Canada’s Crypto Future appeared first on BeInCrypto.

2025-3-10 13:02


Report: Trump expected to announce Bitcoin reserve strategy at White House Crypto Summit

Howard Lutnick said Bitcoin would receive special status under US President Donald Trump’s proposed crypto reserve Lutnick believes that other crypto tokens will be “treated differently—positively, but differently” So far, 12 people within crypto have been invited to attend the Crypto Summit US President Donald Trump is expected to unveil a Bitcoin reserve strategy at […] The post Report: Trump expected to announce Bitcoin reserve strategy at White House Crypto Summit appeared first on CoinJournal.

2025-3-6 05:00


Фото:

Goldman Sachs “U-Turn”: Massive Increase in Bitcoin and Ethereum ETF Investments – A Crypto Market Signal?

Key Takeaways: Bitcoin and Ethereum ETF holdings of Goldman Sachs increased drastically. This is an indication that the traditional financial institutions see crypto as essential. Even though traditional finance initially The post Goldman Sachs “U-Turn”: Massive Increase in Bitcoin and Ethereum ETF Investments – A Crypto Market Signal? appeared first on CryptoNinjas.

2025-2-14 17:48


Фото:

Crypto’s winners and losers: who’s cashing in on the Bitcoin boom?

The cryptocurrency world is awash in new wealth as Bitcoin’s record-breaking climb above $90,000 propels the total value of digital assets past a staggering $3.2 trillion. Forbes estimates that 11 of the top crypto billionaires, whose holdings are predominantly liquid tokens and stocks, have collectively added $38 billion to their fortunes in 2024. Remarkably, $24 […]

2024-11-20 14:48


Bitcoin Price Breaks $60K – Why Is The Crypto Market Up Today?

This is turning out to be a great week for crypto. Bitcoin price just broke past the $60K level for the first time this month. In fact, remember how everybody was saying September is historically bad for crypto? We’re almost halfway through the month, and this is, for now, a “green” month since the BTC […] The post Bitcoin Price Breaks $60K – Why Is The Crypto Market Up Today? appeared first on CaptainAltcoin.

2024-9-14 00:52