Is it worth it to mine Bitcoins in 2021?
Bitcoin has managed to shoot its way to the top of the financial industry. Thanks to the growth that this crypto-currency had over the years, millions of people have grown fond of it. Studies show that Bitcoin is used by around five million people globally and that number is likely to double in the next couple of years.
Its current value fluctuates between $30 000 and $40 000, which is why so many traders are looking to invest in it and make money. Research suggests that thanks to Bitcoin, around 100 000 people have managed to earn at least $1 million.
One of the processes that powers Bitcoin and allows people to earn this crypto-currency is Bitcoin mining. We wanted to take a closer look into this process, as it is often referred to as a 'free way to earn Bitcoins' and see whether that is true and whether it is worth mining Bitcoins in 2021. Let's start.
What is mining?
Mining involves recording and verifying Bitcoin transactions. You do that by solving various complex puzzles. The more puzzles you solve, the more Bitcoins you earn. On average, one Bitcoin needs around 10-20 minutes to be mined. The reason why mining is important is that it creates blocks that are integrated into Bitcoin's blockchain, thus allowing the network to remain stable and updated every day.
But, Bitcoin mining is not the only way to earn this digital asset. The second and far easier solution is to purchase Bitcoins directly from trading sites. Reputable platforms, such as Bitiq official site, connect buyers with sellers from every part of the world.
The best part is that the aforementioned platform specialises in Bitcoin trading and has a huge focus on this crypto-currency. To gain access to it, you must register. After you verify your account, you will have to select your preferred payment method and then, you will be set to purchase Bitcoins.
Since buying Bitcoins on trading sites takes just seconds, it is by far the easier option, hence a majority of traders resort to this option. Of course, buying Bitcoins comes at a cost, but as we are about to see, mining Bitcoins is not as free as one would think. Let us explain how.
Mining comes with a few expenses
The process of mining itself is free, yes. But, what many people often overlook is that there are tons of things that are happening behind the scenes and all of them come at a cost. First of all, if you want to mine Bitcoins, you will need a powerful mining rig. They often cost thousands of dollars.
Additionally, mining rigs use a lot of electricity, which means that your monthly bill is like to rise a lot. Finally, mining rigs generate a lot of heat and they need to be kept at room temperature if you want them to be in healthy condition. Often, that requires you to buy an AC unit that will work while you mine Bitcoins. Not only does the AC unit come at a cost, but since it will be operating throughout the day, that means more expenses to your bill.
As you can see, Bitcoin mining is not as free as one would think. Additionally, Bitcoin is finite and by 2032, 99% of this digital asset will be released into the network. That means that its value will go up and mining will become harder. With all that being said, we can come to the conclusion that mining Bitcoin may not be the best option to earn this crypto-currency in 2021.
It comes at a cost that is similar to buying Bitcoins, while purchasing Bitcoins is hassle-free. That is why a majority of traders resort to buying them instead of mining them.