Refocusing attention on the mining market where cryptocurrency is booming
“In the recent bull market, no matter where in the world it is mined, the profit range”
However, there are many factors to consider, such as huge electricity bills and expensive miners.
Individual participation in mining must be approached carefully
Recently, as the prices of Bitcoin (BTC) and Ethereum (ETH) have skyrocketed, interest in cryptocurrency mining is increasing. Mining is a task that solves difficult math problems with a computer’as if a miner earns money’ and receives a certain amount of BTC and ETH as compensation. As mining attracts attention, the demand for graphics cards (GPU) that improves computer performance is steadily increasing, leading to shortages.
Experts advised, “The mining market is attractive in a bullish market like this one,” but advised that it is dangerous for individuals to jump into the mining market when considering various incidental costs.
#3 conditions for mining cryptocurrency
When a user solves a cryptographic problem using a computer, a block is generated and cryptocurrency is issued. Of course, not all are rewarded for participating in mining. Only the miner who created the block is rewarded.
In order to mine, three conditions must be met. The first is the physical space to run the miner, and the second is the supply of cheap electricity. Finally, there must be a miner. The most important factor among these is’electricity’. Cryptocurrency mining requires high-performance computers to run 24 hours a day. If the price of cryptocurrency is maintained at a high level, even if there are a lot of electricity costs, it will be profitable. Even if you do mining, you may lose money after paying the electricity bill.
#“In the recent bull market, no matter where in the world it is mined, the profit range”
Experts contend that this is a good time to earn profits if only the three conditions for mining are met. Cheol-min Pyo, CEO of Chain Partners, said, “These days, no matter where you run a miner in the world, it is a profit section.” People are making money.”
Lee Eun-cheol, CEO of Bitfury, also said, “In Korea, electricity is expensive compared to other countries because it is necessary to run a mining machine with general electricity, but the recent bullish market has made profits (in Korea).” Bitfury’s main business is the production of bitcoin miners and bitcoin mining service support.
#What if an individual now enters the cryptocurrency mining business?
Representative Lee stressed, “Mining should start with the assumption of the worst situation.” This is because it is impossible to say how long the bull market will continue. Even when the prices of BTC and ETH drop, it is necessary to calculate whether it can handle the expensive electricity bill. He advised, “Because the mining is expensive, it will take a long time to fill the equipment price with mining.”
CEO Pyo said, “The price of the miner has risen tremendously in the futures market as well. If you place an order now, it will take more than 10 months to receive the miner. An official who operates a mining plant in Yeongcheon, Gyeongsangbuk-do also said, “The price of the mining machine has doubled in one month,” and “it is difficult to obtain equipment.”
CEO Pyo said, “Now to place an order for a miner, it has the premise that BTC or ETH will rise much more than it is now, so we need to judge it well.” He said, “You need to have at least 1.2 times and 1.3 times the price of BTC and ETH than the current price in order to find the main battle.”
#Switch to Ethereum Proof of Stake (PoS) method… Are there any mining problems
The new blockchain’Ethereum 2.0′ began operation in December 2020. In Ethereum 2.0, the consensus algorithm was changed. It changed from a proof-of-work (PoW) method called’mining’ to a proof-of-stake (PoS) method. With only 32 ETHs, anyone can become a validator and verify the blockchain and receive rewards accordingly. For the time being, mining will continue on the existing blockchain (Ethereum 1.0), but it will gradually make mining impossible by introducing a difficulty bomb.
Representative Lee said, “If ETH is mined, it is over.” He insisted, “If 2.0 is completed next year, it cannot be mined.” He recommended buying ETH on the exchange at that cost rather than starting ETH mining now.
CEO Pyo said, “Because the mining period is about two years, if you think that you will cross the break-even point (BEP) within two years and generate ROI, you will start mining.” If you can, you do it.”
D Center Reporter Yeri Do