Can You Still Make Money Mining Bitcoin?
The crypto industry is changing in big ways. Take a time machine back one year and you’ll see a completely different environment. Because of this, certain tricks of the crypto trade are slowly becoming obsolete.
Is bitcoin mining one of them? Well, one can still make money mining bitcoin, but it’s certainly not the lucrative business that it used to be. That being said, there are alternatives you can take to keep up with this ever-changing ecosystem.
Is This the End of Mining Bitcoin?
In the early day of cryptocurrency, mining Bitcoin was a more profitable hobby. Back then, the competition was minimal and the block reward was higher. But with so many more miners in the game, operations costs rising through the roof and the decreasing block reward, mining bitcoin is losing steam.
On top of that, increased regulation is shutting down some of the largest bitcoin mining hardware companies and suffocating the market for everyone. But mining bitcoin is far from dead. The landscape is just changing and one must know how to adapt.
Mining Bitcoin Is Not Dead
Despite all the warning signs mentioned in the last paragraph, mining bitcoin, or any cryptocurrency is far from dead. ASIC mining companies like Bitmain are still advancing their technology and coming up with more efficient hardware that saves miners money on energy and mines bitcoin faster.
Furthermore, various bitcoin miner hosting platforms are popping up everywhere, offering a more transparent alternative to the scam-ridden cloud mining/mining pool industry.
Sure, the profits will probably never be as high as the early days but it’s still possible to make a nice passive income if you know where to look.
Profitable Alternatives to Mining Bitcoin
If you’re looking to supplement your bitcoin mining income and get out of the game entirely, there are other ways to make your money to work for you in the crypto space.
Take crypto lending platforms for example. By putting up your mined bitcoin as collateral, you can take out a loan on a site like YouHodler.com. You can then use that cash to pay for your mining expenses, purchase new ASIC hardware or simply invest it into crypto of your choice. You can then use the profits from this investment to pay back your loan and get your crypto collateral back. On top of that, your crypto collateral potentially rose in value that’s an added bonus of profit.
As the industry continues to grow, there are other ways to make money than simply mining and investing. So it’s best to adapt in order to maximize your potential.