Bitcoin mining is still a profitable investment to start in 2022. The overall value of Bitcoin has dipped and risen a few times but in the long view, it keeps growing. There’s also a change in mindset and cryptocurrency is now accepted as a payment method and a way to store value.
The costs of mining have changed significantly, however. The tech needed to mine cryptocurrencies has become more scarce and therefore more expensive as well. The costs of the energy needed to run it have skyrocketed too.
Letting Go Of Mining Facilities
It’s still possible to set up your own mining facility and some do. Those are mostly investors coming to the industry from the IT world. There are online resources out there helping you select the best hardware for setting up the mining facility.
However, this requires a lot of investing early on and that’s why many investors decide to mine using bitcoin mining sites and joining resources with others trying to get a foothold in the industry. There’s less control that way, but there’s no gatekeeping.
Cloud Mining
Cloud mining has emerged as the most used alternative to setting up your own mining facility. The users set up an account that mines cryptocurrency in a cloud and they pay a fee for maintenance and running the mining equipment. That way the profits are lower but there’s no initial investment needed to start mining.
You can find the best bitcoin mining sites on Truely by comparing the reviews and user experiences. It’s important for an investor to carefully select the provider since there are plenty of them and there are a lot of differences in the services they offer.
Pool Mining
A similar principle is applied when using pool mining as an alternative to setting up your own mining operation. In this case, bitcoin mining sites are used to pool together resources and mine collaboratively by using the equipment you’ve bought and financed together.
In this case, there’s still an initial investment, but it’s shared by investors and therefore easier to handle. This option also provides more control to investors by allowing them to choose and run the mining equipment on their own. It’s therefore in a way a mixture of the benefits that come with cloud mining and having your own mining facility.
How Much Profit You Can Expect
Before you start using bitcoin mining sites it’s important to be aware of what kind of profit can be made with crypto mining in the first place. That’s based on the volatility of cryptocurrency markets that tend to fluctuate based on supply and demand. If a cloud mining provider promises an amount you can profit from, it’s best to be skeptical of their claims since that part of the process is beyond their control.
In 2021 you could expect to mine about 0.0006 BTC per day, meaning you could earn about $30 without any personal involvement, as a passive income.
Selling A Cloud Mining Contract
Some Bitcoin mining sites allow the users to sell their contracts after a while. This is an important policy allowing you to cut off an investment that has proven to be too risky. However, it’s not something that all cloud mining sites would allow for and you need to look for a provider with such an option.
Since this is still a new development in the cryptocurrency industry many cloud mining providers lack such long-term planning. Chances are that many will start to implement it soon.
How to Use Bitcoin Once You’ve Mined It
There are many ways to use and profit from Bitcoin once you’ve mined it. The most common way is to sell it, but now there are other options as well. Bitcoin can be used to make payments for many online services.
Many have started to lend Bitcoins as they would with any other traditional currency. The payments and interest are sometimes paid in cryptocurrency and sometimes in traditional fiat currency payments depending on the arrangement you’ve made. It’s a new venture, but it’s easy to set up and works similarly to traditional loans.
Should You Start Mining Bitcoin?
There’s profit to be made in mining Bitcoin and there are more ventures you can start with cryptocurrency than before. There are also ways to make this profit without having to invest a lot in the mining equipment as was once the case. That’s because cloud mining and pool mining have emerged as valid alternatives.
It’s also possible to sell the contract you’ve made with a cloud mining provider, at least with some of them, and get out of the investment if it doesn’t work out. The trade-off is that the investors are less involved in the tech side of the mining process.