BTC’s slump has alienated many miners. However, a new report suggests that there is a silver lining on the horizon.
In 2018, mining was everything but popular. While some analysts urged miners to stop and wait, businesses like the alleged scam Hashflare pulled out altogether citing non-profitability. However, mining has managed to endure the challenges and might soon become a vogue activity once again.
A new report by Diar paints a somewhat optimistic picture of the mining’s future. The authors state that profits from mining have increased over the past few months, even though February 2019 was generally a disaster. Only $195 million worth of BTC was minted, which is 10 percent less than in the previous month. The gross margins (the value of cryptocurrencies being mined, the value of reward, and the cost of electricity) also decreased. In January 2018, it was at the level of 94%; In January 2019, the number fell to 32%.
Despite the gloomy picture, there seems to be a silver lining. Diar’s researchers noticed that in February the gross margin began to increase by 7%, reaching 39%.
Where do I start?
With buying expensive equipment. Diar projects that “the current equipment might no longer be enough to sustain long-term outlook with a looming coinbase reward halving a little over a year away.”
This, in turn, means that there will be an increase in expenditure on flagship models from behemoths like Bitmain. Diar notes that the new miner model, the s15, has already been sold out twice-over. The next batch is set for shipment in April. Diar zooms in on the matter:
“It is likely then that hash power continues to increase in the coming months bar a massive price drop. But at current Bitcoin prices, the capital requirements would still be to miners benefit with the S15 averaging 84% more return than it’s predecessor, the S9.”
I am broke, what do I do now?
Even if you are a big mining fan, there is a good chance that you lack funds for buying such sophisticated equipment. In this case, make sure to check out the easiest altcoins to mine for inspiration.
Previously Diar also published a report on stablecoins, pointing out that they are becoming increasingly popular.