IS BITCOIN MINING PROFITABLE ?

ravisinha (31)in #crypto • 7 years ago

Bitcoin is like Digital Gold and it has immense potential yet maximum Indian’s aren’t aware of it. Earning bitcoin is like earning gold , its value increases everyday. Its currently having the highest Return on Investment among all trade able commodities. In July 2010 , 1 BTC = 0.08$ and now it is 1777.77$ (CEX.IO) |1724.58$(Coinbase - No India Support) , see the massive growth. Recently after Japan legalized Bitcoins the price skyrocketed , and in the coming 4–5 years the price per 1 BTC will reach 20,000$ , Mark my Words. Nothing in this world can give you such an huge return.Now the question is how to earn Bitcoins ? Bitcoin is a form of digital currency, created and held electronically. So to earn bitcoin , you have either create it or held it, in technical terms you have to trade bitcoins or you have to mine it.

Trade Bitcoins

Bitcoins are easily available for trade , you can buy or sell any amount of bitcoins from India. There are several Exchanges / Exchange cum Wallets which allow such transactions.There are several International exchanges which can be trusted and you can trade with them.

Recently two Indian companies jumped into Bitcoins and they came up with Wallet-Exchange concept

2. Mining BitcoinsYes, you can create your own bitcoins and as much as you want and this can be done using you hardware or cloud services .

Hardware Based Mining

In the initials days of Bitcoin mining , it was easily mined using the CPU . As the miners increased , to use more hash rates people started using GPU and now ASIC. I am not going into the details on how this works in the background , you can refer to this Bitcoin mining if you want to know the science behind it.CPU/GPU MiningYou can use the hashrate of your own computer to mine bitcoins. But due to huge number of miners , difficulty of blockchain and high hash rates of ASIC its nearly impossible to mine Bitcoin for profitability. How can compete with your 100H/s against 1TH/s ? If you have free electricity then you can get some sort of profit. Where as you can mine Altcoins or Alternative Cryptocurrencies such as Monero , Bytecoins , DASH , Ethereum etc. You can wait for them to turn into Gold or you can convert them to Bitcoin using CryptonatorAll you need to do is Register and Download Minergate GUI Miner. They also offer “Smart Miner” which automatically determines based on current exchange rates.ASIC MiningIf you have a high budget you can get yourself BITMAIN‘s Antminers which will cost 1000$ + which is around 80,000 INR. You can calculate the profitability using Cryptocurrency Mining vs. Bitcoin Mining Profitability

Cloud Based Mining Services

This concept is going rounds for last few years, there are certain mining companies who are offering cloud services. All you need to do is sign up at their websites and buy hashrates. They take onetime fee + daily maintenance fee and offer lifetime contracts / one/two year contracts. You can mine Bitcoins , Monero , Ethereum , Dash etc and you can calculate your profitability using Cryptocurrency Mining vs. Bitcoin Mining Profitability . But in this cloud mining sector , maximum companies are running scam like TeraBox - Cheapest Bitcoin Mining , so you have choose very carefully . You can trust the below websites completely.

Genesis-mining ( Use code mNpFUG for 3% discount)
Hashflare.io
Hashing24
NiceHash
GEOVIA Minex™

Now the most important thing storing the bitcoins. There are really security concerns about storing the bitcoins. Major exchanges have been hacked , bitcoins worth millions were stolen.

So , the first and foremost rule never keep all your bitcoins in your one pocket , DISTRIBUTE THEM
Avoid keeping bitcoins in exchanges , put them in wallets.
If your amount is small and you are interested in Trading keep with in Hot Wallets (Online Wallets) like Coinbase , Blockchain , Xapoetc.
You can also keep your bitcoins on Windows / Android based softwares such as Copay , Mycelium Walletetc.
If you have more bitcoins and want to keep it ultrasafe then go for Hardware wallets like KeepKey , TREZOR . or the cheapest Ledger Wallet which is available at only 58$.

You can also earn Bitcoins in small amounts (Satoshis) from websites like Moon Bitcoin.Note:- About Legality of Bitcoin in India , its neutral. A particular thing becomes illegal only when the thing is prohibited under a particular law. Currently there is no law under which states that investing / mining / earning Bitcoins is criminal offence. All the developed nations are pushing towards legalizing Bitcoins , so will India.12.4k Views · 50 Upvotes Upvote50DownvoteShareComment...Recommended All Abdul Muqeeth Mohammed, Software Engineer at United Health Group (2016-present)Answered May 21The best bitcoin miner available in market today is the 14 TH/s Antminer S9 with power consumption of 1370W and is priced at $1700 on bitmain.com. You will also need to purchase a 1600W power supply along with it. Suggested one is the APW3+ power supply which is also available on the same site at $105. So, total hardware cost is around $1800. Along with the customs charges for importing it, the total comes to around $2300. This cost in number of Bitcoins will be around 1.16 Bitcoins (1BTC =$1980).Now let us calculate the profitability of mining Bitcoins with an Antminer S9.With the current difficulty factor which is at 559970892891( as on 20 May 2017), if you have 14 TH/s power, you will be able to mine 0.18 Bitcoins per month. Assuming the difficulty level to be same and electricity to be free, it will take around 6.5 months to cover the hardware costs alone.Let us now factor the electricity costs. The lowest electricity tariff in India, which I guess is in Jharkhand, is around Rs. 3.2/kWh. With the power rating of 1370 W, in one month we will be using around 1000 kWh which amounts to Rs 3209 or 0.024 Bitcoins.When more miners keep getting added to the network, the mining difficulty increases as the number of blocks to be solved in a specific interval of time remains constant. On an average the difficulty factor increases by around 5% per 14 days.The number of bitcoins generated in 19th month will be 0.026 and in 20th month will be around 0.023 which is lower than the cost of electricity.The number of bitcoins mined in 19 months will be 1.556 BitcoinsElectricity cost for 19 months will be 0.456 BitcoinsSo, net income will be 1.556-0.456=1.1 bitcoinsNet loss= hardware cost – income =1.16-1.1=0.06 BitcoinsSince electricity cost becomes greater than the bitcoins mined, a break-even point will never be reached.Thus, Bitcoin mining with the world’s most efficient miner, the Antminer S9, cannot even recover your hardware costs.6.6k Views · 34 Upvotes Upvote34DownvoteShareComment...Recommended All Vishnu Talanki, In BTC we trustAnswered Dec 30, 2016Bitcoin is a profitable business as of now. But as time progresses the profitability is bound to decrease due to the very nature of Bitcoin. That is the number of new Bitcoins that’ll enter the system are bound to decrease exponentially with time.New Bitcoins enter the system, when Bitcoin miners verify Bitcoin transactions, and are hence “rewarded” bitcoins for this verification, which involves solving complex mathematical and cryptography related problems.How do the miners solve these advanced mathematical problems?With the use of powerful hardware. You can no longer mine Bitcoins using your normal PC, that runs on a normal C.P.U. Forget C.P.U’s even high level G.P.U’s are obsolete. Bitcoin mining is nowadays done using powerful Bitcoin mining ASIC’s (Application Specific Integrated Circuits). That are designed for the sole purpose of Bitcoin mining.So Despite being profitable, I tend to stay away from mining because, the initial investment is high. And it requires a large quantity of continuous electric supply (This is a large part of the investment). And it is a very competitive space. And a lot of Ponzi schemes and scams have been coming up in this space, that promise 1000% return in days.6.4k Views · 2 Upvotes · Answer requested by Yahya Mithaiwala Upvote2DownvoteShareComment...Recommended All Sayan Goswami, proud IndianAnswered Mar 5I will assume by mining you’re considering doing it alone instead of pooling.Given the current bleak scenario, the average home miner will struggle to recoup the cost of mining hardware and electricity. Profitability is highly unlikely given the current circumstances. The situation may improve in future once ASIC mining hardware innovation reaches the point of diminishing returns. That, coupled with cheap, hopefully sustainable power solutions may once again make Bitcoin mining profitable to small individual miners around the world. This would also greatly improve the decentralisation of the Bitcoin network, hardening it against legislative risk.CoinWarz[1]offers a good mining profitability calculator, which automatically fills in the current BTC price, difficulty and block reward info. Enter specs and cost, as well as other information such as power cost and pool fees to find your profitability.Do not expect gold, at best the number you get would be a few hundred dollars for a year and the warmth of your mini rig during the cold winters. Some regions of China have very low power costs, further most mining hardware being manufactured in China make it the mecca for hobbyist miners who make a pretty decent profit of a thousand dollars a year.Footnotes[1] Cryptocurrency Mining vs. Bitcoin Mining Profitability5.5k Views · 1 Upvote Upvote1DownvoteShareComment...Recommended All Sandeep Chopra, As a Blogger I have been writing on Bitcoin. Besides I also mine bitcoin.Answered Jul 7, 2016Bitcoin mining is mainly being done in China. There are reasons why it is happening so much in China and not in India. Please see some basic requirements :

Bitcoin mining requires servers specially made for Bitcoin Mining. China makes lots of such servers at very competitive prices. If we import these servers into India, heavy import duty makes it less feasible.
Lots of consistent electricity is required. Electricity is very cheap in China where as in India it is very expensive. If we depend on self generation electricity through generators etc, then it becomes more expensive and cumbersome. In India, supply of electricity is also an issue. With high powercuts, you are forced to depend on generators which increases the cost of running servers.
Maintainance : Servers needs lots of maintainance. Large amount of heat is generated while running these servers. They have to be running 24 hours, hence you need to have airconditioning to keep them cool and running smooth.
Consistent high speed internet is a necessity for bitcoin mining.

Based on above requirements, one can see if it is profitable to carry Bitcoin Mining in India or not. Yes Pool bitcoin mining options are there. Refer : Pool Bitcoin Mining - A Business Opportunity7.6k Views · 7 Upvotes · Answer requested by Soumya Soni Upvote7DownvoteShareComment...Recommended All Abdul Fani, Forex Trader (2016-present)Answered Jun 23Bitcoin mining is not profitable anymore. It’s quite hard to mine even 1 bitcoin nowadays. It only makes sense to mine it, if you have lots of super powerful computers and cheap electricity.However, you still can invest in bitcoin. Its rate contionues to grow. Here is an article about 7 Reasons to Invest in Bitcoin in 2017.If you want to mine, there are a lot of alternative coins, that are possible to mine even on one computer. Before mining, you should make a small research to calculate if mining on your computer is profitable, to choose best cryptocurrency. There are services, that will help you to do it. For example, What to mine.1.5k Views · 1 Upvote Upvote1DownvoteShareComment...Recommended All Kostas Tsakaloglou, Have a blog about cryptocurrency: https:/tsakf.quora.comAnswered Feb 22, 2016Originally Answered: Is Bitcoin mining profitable in India? In 2015 or 2016?Bitcoin mining will be profitable, if the demand grows so it's price will be higher than the operating costs and the cost of the hardware. I don't know when this will happen. For now, the cost of mining is high because of the energy needed. If you have a place near a waterfall, to get almost free energy, it is already profitable.1.8k Views · 1 Upvote · Answer requested by Alamgir Sk Upvote1DownvoteShareComment...Recommended All Dhrumil Bhankhar Updated Jan 17Yes, it’s profitable. I am not saying after reading just couple of blogs. This comes from my own research. But there are several factors you need to consider. Main ones are…

Bitcoin pricing
Mining difficulty
Block halving

Your profit depends on that. If you are smart enough, this is like calculated risk. I would recommend to be with cloud mining as buying your own hardware will make you out of date before you earn profit.Please be aware that most of the cloud mining are scams. So far, I could trust only 2 of them :Hashflare (This one is my personal favorite due to good offers :) )Genesis MiningHow to get 3% discount with HashFlare

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Same way, there are 2 wallets you should use for India to get bitcoin in your bank account

Unocoin (Web wallet)Zebpay (Android App wallet. This one gives you good conversion rates.)

I have written a blog if you are interested in more details. I share all the useful information which will help you to take the decision.All you wanted to know about bitcoin miningThanks3.5k Views · 4 Upvotes Upvote4DownvoteShareComment...Recommended All Harshad Gawde, bitcoin minerAnswered Dec 4, 2016Yes bitcoin is super profitable in India. This 500/1000 rs note change itself shot up the Indian price more than 10k compared to the real price.. I am a cloud miner and my income increased upto 30% 40%.The beginners first step would be to select a wallet. There’s Unocoin | India's Bitcoin Company & Zebpay Bitcoin India | Buy Bitcoin | Sell Bitcoin | Buy Bitcoins Onlineonocoin is my personal favorite but zebpay is good too. Once you get the apps you’ll be udated with the rate changes and other news.If you want to earn then there is bitcoin mining which is not at all profitable now and then there is bitcoin cloud mining which payout for real.HashPoke & https://hashflare.io/r/B73ACFA0These are a few renowned companies the have lifelong contract and which I earn my bitcoins from. Heres a video that can help you. Mint it! its very old but helps to get an idea.3.3k Views · 5 Upvotes · Answer requested by Prashant Pawar Upvote5DownvoteShareComment...Recommended All Max Miner Answered Jul 15Yes but it's harder these days so you need to buy special ASIC hardware. An easy way to get started is with your computer. Go here http://bit.ly/get-miner Create an account then download the software. Install the software and log in with your account. It's very easy to use. You will want to mine a currency that is more suited to CPU/GPU mining like Monero or Ethereum, rather than bitcoin. But you can mine bitcoin too if you like (you can mine over 10 different coins with the same miner). If you are not sure just set it to Smart Mining and it will automatically mine the most profitable coin for you. The next step is to buy a graphics card. That will cost you money (if you don't already have one) but will allow you to mine much faster. Then when you get really serious buy an ASIC bitcoin miner like the Antminer S9. It is very expensive but can mine 13TH/s. That is currently the most efficient way to mine bitcoin, but requires significant upfront investment. Bitcoin mining these days is only worthwhile with ASIC hardware. But you can mine other coins with your computer and convert them to bitcoins later if you really want bitcoins311 Views · 1 Upvote Upvote1DownvoteShareComment...Recommended All Shubh Kaushik, Bitcoin Miner, Singer, Cost Consultant - RICS CertifiedAnswered Jan 19No, it is not profitable in India. there are several factors that govern mining.

Hardware :- we can not mine bitcoins with our PC/laptop as more the people are getting into mining , tougher it is getting day by day. we need upgraded hardware for mining which is not available in India. although you can find some on Amazone, but they are expansive and maintenance issues are there.
Internet :- you need high bandwidth as well as economical internet connection. again it is not available in India.
Electricity :- This is the most important part. you need uninterrupted and cheap electricity to get profit from bitcoin mining. but still we are far from that.

Considering above facts, it is better to go for investment into authentic mining company and you will be benefited much more without any burden for maintenance etc. there are lots of good mining companies in India and around the world, in which you can invest.for more you can mail me at gainbitcoinsforsure@gmail.com or whatsapp me at 9891152721…HAPPY MINING……Shubh2.4k Views · Answer requested by Nitin Markad UpvoteDownvoteShareComment...Recommended All Megha Mathur, A wanderer, bitcoin miner and music lover.Answered Dec 8, 2016Originally Answered: Is Bitcoin mining profitable in India? In 2015 or 2016?Bitcoin mining cannot be profitable in India.It requires continuous electricity and 4g internet, which we dont get even in metro cities.But you can join big mining pools (which have their server farms out of India) and earn lot of Bitcoins.To know more, pm me…:)952 Views · 2 Upvotes Upvote2DownvoteShareComment...Recommended All Chandan Singh, works at Self-EmploymentAnswered Feb 22It is 100% FREE to join today and begin building your team.You simply purchase a mining share for $50; $1000; or $5000 and begin earning daily on autopilot.For those who build team, there are 8-12% direct referral commissions,as well as a royalty income that pays EVERY TIME you get just ONE purchase on each direct! With repurchases, the royalty can pay up to 5 Bitcoin per day.This is free registration linkRegister To,Mining HubHere you can earn royalty 10% from your direct sponosor incomeWant double your money using bitcoin cloud mining.... grab this brand new opportunity before time out and start growing your team and make double your moneyMY REFERRAL ID TO SIGN UP FREE "DAICHIBTC"Website Bitcoin, Bitcoin Mining company, Bitcoin Mining farm$50 will be $100 after 200 days$500 will be $1000 after 200 days$1000 will be $2000 after 200 days$2000 will be $4000 after 134 days$3000 will $6000 after 134 days$4000 will $8000 after 100 days$5000 will $10000 after 100 days#bitcoincloudmining#bitcoin #workfromhome#btc #zcash.R2