Reasons Bitcoin Mining is Profitable in 2021

Things like changing news and trends about cryptocurrencies and so many new currencies and platforms appearing on the market might make you wonder whether bitcoin mining is still profitable in 2021.

Here are some reason why we think it is:

1. Though it was literally a rollercoaster the last couple of years, Bitcoin is still the most stable, valuable, biggest and most popular decentralized cryptocurrency.

2. Mining equipment is more easily obtained.

3. Simple example: If you mined just one Bitcoin block in 2010, and you held onto it in your wallet, you would have had $450,000 worth of Bitcoin in 2020.

4. You can use web-based profitability calculators to check the cost-benefit equation.

5. In 2021 Bitcoin is still growing, and it is easy to observe the upward trend. Important fact here: it is becoming a trillion-dollar asset this year.

6. The ability as an individual of joining mining pools is a good reason too if you are worried about how to compete against mining mega centres, and it can put your personal profitability in reach.

ASIC-Miner Explained

What is an ASIC miner?
ASIC miners are a piece of equipment or computing systems that are built for mining cryptocurrency only. ASIC stands for Application-specific integrated circuit. Each device is designed and made to mine a new specific coin and particular algorithm. That means, a Bitcoin ASIC miner can only mine BTC, a Litecoin ASIC miner only interfaces with the LTC blockchain etc. Several coins that use the same algorithm can all be mined by using a single ASIC miner.
In other words, each cryptocurrency has its own cryptographic hash algorithm and ASIC miners are made to mine while using that specific algorithm. So Bitcoin ASIC miners are actually designed to calculate the SHA-256 hash algorithm. In the case of Litecoin, it uses Scrypt.

Is it worth it?
ASIC mining seems to be the preferred method for the mining of cryptocurrencies because of its speed and efficiency in running complicated calculations to solve mathematical puzzles and finding a specific number. Owning an ASIC miner gives you a great chance of earning cryptocurrency. And the faster your hardware, the more coins you can earn.
When it comes to mining cryptocurrencies with an ASIC miner, it is very important that the cryptocurrency you mine is worth more than what you spend on hardware and electricity. Those amounts can be closer than you might think because mining cryptocurrency can be expensive. So try to do the calculation beforehand, just to be sure it is worth it for you.


Why ASIC miners?
When choosing your mining hardware, getting a more efficient system is very important. Other hardware options could be graphic card or CPU mining systems. Those depend on components designed to perform more than just one task. ASIC miners in comparison are made to perform the calculations required by a specific cryptographic hash algorithm used by an individual. Because of this single focus, they’re way more efficient, powerful (while offering a high hash rate) and energy-efficient. They use far less power than a mining rig for the same task. This combination of performance and low-power usage makes them incredibly more economical to run than more general-purpose hardware. So you should definitely consider purchasing an ASIC miner. If you need more inspiration and information, check out the website cryptosupply.de.

Mining Cryptocurrencies

What does mining mean?
Simply said, mining means that you can earn e.g. bitcoins without paying actual cash money for it. That is it not free at all, we will find out later in this article.
Miners verify transactions and complete blocks (one block = one megabyte worth of bitcoin transactions), which are added to the blockchain. This is a very complex computual puzzle. By doing this, miners help to work against the “double-spending problem” (owners of cryptocurrency use their digital tokens twice) and ensure the validity of those transactions. They get rewarded by receiving cryptocurrency. But verifying one megabyte worth of transactions does not mean you will get any bitcoin for it, it just means you are eligible to earn cryptocurrency. You also have to be the first coin miner, who is solving this numeric puzzle or verify the most transactions, to get paid out. This process is called proof of work.

How to become a miner?
As mentioned before, becoming a miner is not for free. You will need to purchase several things:
First of all you need to set up a mining rig. This can either be a GPU (graphics processing unit) or an ASIC (application-specific integrated circuit). ASIC is a special mining hardware, which mines cryptocurrency very fast and does not use a lot of energy.
After owning a mining rig, you will need to set up a bitcoin wallet. To receive, manage, store and organize your cryptocurrency.
The next important step is to find other miners and start a cooperation. Those are called mining pools. Because the chances are very low, that you will receive any tokens on your own. Though you have a very powerful ASIC. You can find many mining pools to join online.
After those three steps you will need to install a software. Getting a mining programme for your computer is important to get connected to the Blockchain and the network.
With all of those things you can finally start mining and receiving cryptocurrency tokens.