Bitcoin mining profitability 2020, Is it still worth to mined?
How about bitcoin mining profitability in 2020.
The year 2020 has come, the bitcoin mining business will be one of the big question marks
There have been many articles that discuss halving bitcoin in 2020 which is expected to occur in May.
Where this halving occurs every four years, which will reduce the miner’s reward.
At this time the reward obtained by the miners is 12.5 BTC.
So when the miner completes a calculation to confirm a transaction he will receive a 12.5 BTC reward to their wallet.
And after halving occurs later in May, the miner will only get a 6.25 BTC reward.
Thus the miner’s income will decrease, in theory.
Then is mining bitcoin in 2020 still profitable? What is Bitcoin mining profitability 2020?
Well, we will review from crypto analysts in a number of sources summarized in this article, enjoy your time.
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Bitcoin mining reward halving in 2020
Bitcoin mining profitability 2020
The workings of bitcoin miners are that they use computers at high speed to solve certain algorithms to confirm transactions.
And when the miner is able to complete the algorithm, he will get a bitcoin reward, the current reward is 12.5 BTC.
The way the bitcoin cryptocurrency works is different from flat money.
Where fiat money is issued by the central bank, where they will increase the supply of the amount of money if needed for the purpose of developing the economic sector.
While Bitcoin is produced in a certain number of 21 million units, there are no more additions.
Meanwhile, halving occurs every mining a total of 21000 blocks, and every time Bitcoin halving occurs, this will reduce the miner’s reward.
Since we first bitcoin mining miners get a reward of 50 BTC, and now the miner’s reward is 12.5 BTC.
This means halving has occurred twice.
Halving happened every four years one time.
The first halving reduces the reward to 25 BTC.
The second halving decreases the reward to 12.5 BTC and on May 12 according to Bitcoinblockhalf the third halving will occur and will decrease the reward to 6.25 BTC.
What is impact halving to the miner? bitcoin mining profitability 2020
Bitcoin mining profitability 2020
In 2018, some analysts said that the bitcoin mining business showed a somewhat lethargic indication, plus reports that this mining caused pollution and required high electricity costs.
From Tokeninsight sources get information that Bitcoin price volatility and reduction in BTC rewards affect the decline in hardware profits during the third quarter of 2019.
However, TokenSight stated that it did not reduce the demand for mining machinery.
During the third quarter of 2019, more demand for high-efficiency machinery compared to the inventory.
They also examined mining statistics and concluded mining difficulties increased to the highest point of 12.76.
Where the average increase in difficulty is at 6.76 percent per adjustment.
While the hash rate jumped to 109 EH/s.
It can be concluded that mining company revenues will decline because most mining machines find it difficult to produce enough BTC to cover their purchasing costs.
Whether it’s mining difficulties or network hash rates will increase during the third halving in May 2020.
However, many crypto experts claim that after this halving will push up the price of BTC, whether it’s fast or slow.
This is because the rest of bitcoin is no longer large, and if goods are scarce the price will rise as in the law of demand and supply economy.
So this is good news for miners who are experiencing difficulties because BTC rewards are declining.
If the price of BTC rises it will be able to cover the operating costs of computers and electricity.
How about individual miners?
Before halving occurs it is very important for miners to have an efficient power engine.
From TokenInsight, the performance of a high-efficiency miner is not comparable to the previous quarter, but it still beats the old engine.
The old machine is decreasing its performance, where to reach the break-even point might reach 500 days.
With increasing electricity consumption and crypto mining costs, individual miners are almost gone.
Although there are some bitcoin mining applications with Android.
That will only waste time and batteries because it is unable to compete with large mining companies with super-sophisticated computer networks.
A choice that still makes sense for individual miners is joining in cloud mining.
Cloud mining companies use a variety of mining machine categories.
This is to protect both investors and companies against the failure of one engine category.
Bitcoin mining cost in 2020
To be able to mine bitcoins certainly requires a cost.
And how much this cost also depends on the equipment to be used, and also the place where they are mining.
This is caused by differences in mining equipment which will cause a large number of costs to be incurred.
And to do bitcoin mining using super-sophisticated computer equipment will require electricity costs.
Where the amount of electricity costs is different in each country.
For example, by using the same mining equipment.
If you are mining in Germany this will be different in mining costs because electricity costs according to the data are the most expensive in the world.
To reduce the cost of electricity that is cheaper you can do mining in Canada.
Or in China, because the country has a low electricity cost.
The image data below is a list of electricity costs in 2018 from the world energy council, We are not yet found valid data electricity costs in 2020. but I think there is no differ much with 2018
For the price of mining hardware also varies depending on the performance and quality of the tool.
If you want to get a cheaper price you can buy a used Antminer.
But usually, the quality of the speed has decreased and this can reduce competitiveness with other miners.
The conclusion, for bitcoin mining, cost 2020.
That it depends on the mining equipment used and depends on where you live.
If you are in China for electricity costs can be kept as low as possible, and indeed most miners are from China.
In addition to the cost factor, of course, mining will also pay attention to the profitability factor.
Whether it will be possible to provide benefits or vice versa, operational costs are greater than the results.
Profitability factors also depend on the level of difficulty.
The level of difficulty in mining bitcoin 2020 is of course also an increase compared to the previous period.
After halving and the remaining bitcoin that is mined.
There will be less and this can cause its own level of difficulty because many more miners have better-supporting devices.
However, the level of difficulty does not mean that there are more miners entering the industry.
But because mining machines are becoming more sophisticated.
So they are faster in making calculations to confirm transactions.
Choose the best coin to mine 2020
Bitcoin mining profitability 2020
If you already have a mining machine in 2019.
Then you also need to pay attention to several points for 2020 mining.
- You need to find exchangers that can convert coins into fiat money, or buy popular coins like ETH and BTC.
- Then does the exchanger support the mined coin, although some coins may be more profitable to be mined if there is no exchanger that supports, it the cause a greater withdrawal fee.
- You should also pay attention to whether your country prohibits coin mining or not because in some countries there are banned coin crypto mining.
- You also have to evaluate the mining device for the long term, is it still feasible to use or not, because the progress of new technology can make the old technology to decrease its performance.
Top altcoin to be mined in 2020
Mining bitcoin for some miners may no longer be considered worthy of profit, a smaller reward, the price of bitcoin in 2019 is often decreased.
This is considered by some miners to find alternative coins that are considered more profitable.
In the following, we have summarized the Changelly of several coins which become alternative coins to be mined in 2020.
Grin is relatively new in the crypto world, working on the basis of the MimbleWimble consensus algorithm, which ensures the privacy of transactions within the network.
The reward for mining: 60 GRIN per block
Grin traded famous exchangers including Poloniex, HitBTC, Bittrex, OKEx, and KUCoin.
Released since October 2016, anyone can mine Zcash, their algorithm allows mining with graphics cards, with the hashing Equihash function.
The reward for mining; 10 ZEC
Ravencoin is a protocol based on the Bitcoin code fork which adds a feature that allows tokens to be issued on the Ravencoin blockchain.
The reward for mining: 5000 RVN
Monero has been on the crypto market since 2014, this includes a reliable coin that is still growing and increasing in value, the current Monero price is 89.12 $ and may continue to increase.
The reward for mining: 2.47 XMR
Ethereum Classic (ETC)
To mine Ethereum classic, several GPU engines can be used
Ethereum classic is the result of Hardfork from Ethereum.
Ethereum classic offers a way to manage digital assets without intermediaries, such as banks and other financial institutions.
The reward for mining: 4 ETC
Litecoin offers a payment method that approaches zero coshes globally, a decentralized global payment network with no intermediaries
Coin has been widely accepted on many platforms, so this is one of the profitable alternative coins to mine.
The reward for mining:12.5 LTC
Bitcoin Gold (BTG)
Bitcoin gold is a cryptocurrency with fundamental bitcoin which can use a GPU to mine instead of using ASIC mining.
ASIC mining tends to monopolize by big players, but GPUs don’t, everyone can mine again.
The reward for mining; 12.5 BTG
Electronium offers a cellular-based payment method, ETN can be used for daily goods payments and can also top up pulses.
To mine ETN can use GPU and CPU.
The reward for mining: 7000 ETN
Dogecoin is a digital currency that can be used for payments via the internet, this is a peer to peer payment.
This coin was created by Billy Mark just for fun but actually got a good response in the market.
The reward for mining: 10.000 DOGE
Launched in 2015 Ethereum and later became one of the popular coins, the price has increased.
This is also a digital currency that can make transfers at any time at a low cost globally.
The reward for mining: 2 ETH
To calculate mining profitability with GPU or ASIC you can try using a platform https://whattomine.com
Although Bitcoin mining has decreased its rewards, there are still other coin alternatives that can be assets worth mining for profit.
But if mining is complicated for you, another way is to trade crypto through an exchanger or broker that provides access to the crypto market, but this activity has a higher risk than mining.
If you choose to trade crypto, what you need to pay attention to is, of course, the fundamentals or news relating to the traded digital currency.
For example, Bitcoin Halving which might cause changes in the price of bitcoin, by following changes and news updates will at least provide a reference in trading.