If you have heard about cryptos, you must have heard about crypto mining. Crypto mining is a decentralized version of banking systems. Similarly, it transfers value from one person to another globally, but without a centralized authority.
Cryptocurrencies have been growing in price and value for the past decade. People around the world are getting more acquainted with the virtual currency concept and learning how to transact daily. Moreover, many have had their eyes on crypto millionaires fantasizing they will get started today and be rich by tomorrow.
Anyhow, it doesn’t take long until people turn their interests to crypto mining. At the beginning of crypto mining, the movement was thought of like a gold rush. However, mining is very risky and expensive, therefore not for everyone.
Just as with cryptocurrencies, you shouldn’t spend any amount you cannot afford to lose. And mining can be even riskier than cryptos because the investment is much (much)higher, you can’t fraction it as you would with a cryptocurrency.
What´s crypto mining?
Crypto mining, in a simple explanation, is a process in which transactions for numerous forms of cryptos are checked, verified, and added to the blockchain.
Miners are accountable for ensuring the authenticity of the data and updating the blockchain with the transaction.
Here are 5 reasons why you shouldn’t consider mining:
- 1. Equipment and power are expensive.
Specialized hardware devices alone to build a crypto-mining-rig setup can cost anywhere from $2500 to $3500 and even more.
Electricity costs will vary much according to where you live. But no matter where it is, electricity is an expensive fixed cost as it is. An estimate from MarketWatch indicates that mining a single Bitcoin runs from $3000 to or over $9000 in energy costs.
- 2. Values are volatile
Cryptocurrency values are volatile. Although it has increased much in price and value in the past decade, their prices are nowhere near stable. Therefore, inconstant and unpredictable values should be enough reason for you not to get involved.
- 3. Risky
Now, you already have an idea of the expenses; the level of investment just isn’t worth the risk. It’s a high investment of money and time, and you could, however, end up with nothing.
- 4. Mining pools
These pools consist of numerous people sharing in the same equipment and costs to do the mining. However, profits are also divided equally, therefore everyone gets less money.
This is about purchasing time on someone else’s rig, charged on what’s called hash rate. When you purchase a higher hash rate, you are supposed to receive more coins for what you pay for, but it will cost more. You literally get what you pay for, which is different from mining pools. Also, it has maintenance fees, and you must sign up contracts.
This is highly NOT recommended by 99bitcoins.com
To make mining a lucrative business, you will have to invest heavily in storage, cooling, and equipment. High expenses with no promises of return. Even if you have the best equipment, and everything you need the returns are not guaranteed. I feel like I’m on repeat mode. That´s cause I AM.
Here is a list to help you consult the mining business to see if you should consider mining:
Make sure you make the right calculations and then decide if this is for you or not.
Let us know you thoughts in the comments.
Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market. However, it is only our point of view and not legal advice. Therefore, it may be divergent from other opinions. So, please do not make any decisions without concluding studies of your own. Research to understand the profit possibilities and uncertainties involved at your own risk.