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Why is everyone mining this year (Why mining is not profitable in 2018)

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Why is everyone mining this year? Today, the price of Bitcoin has been hovering

Why is everyone mining this year (Why mining is not profitable in 2018)

Why is everyone mining this year? Today, the price of Bitcoin has been hovering around $11,500 for some time. But now it seems that Bitcoin has returned above $11,000. Does this mean that it will continue to rise this year?

With the continuous increase in price, the demand for mining machines, hardware, and funds is also increasing. As a result, the mining market has experienced a growth trend, so we need to pay attention to the following aspects:

1. The world’s largest cryptocurrency exchange Bitfinex announced that it will collaborate with Coinbase to launch a cryptocurrency trading platform. Bitcoin.com plans to start accepting customer applications next month. 2. Shortly after the US government cracked down on BitcoinCore, the exchange was accused of selling $30 million worth of digital assets and violating securities laws.

3. Due to the strict crackdown on virtual currency trading by Chinese regulatory agencies, a large number of investors have withdrawn from their investment portfolios, resulting in a substantial adjustment and price drop in cryptocurrency. 4. The computing power of the Bitcoin network continues to increase, and it is expected to reach 22,000 TH/s by the end of the year. 5. More and more people realize that Bitcoin is an important part of the blockchain industry: it is a distributed ledger technology solution.

6. Currently, more than 40 countries worldwide are using blockchain technology to solve energy consumption problems. The energy consumption of these countries accounts for more than 70% of global GDP.

7. Bitcoin, as a decentralized network system, has much lower performance than traditional computers and can only process more than 100 calculation tasks per second. This process is short and low cost. In August, the Bitcoin block reward was 6.25 BTC (about 100,000 RMB), compared with only about 500 active nodes at the beginning of the year, and an average of more than 30 machines can run per hour, saving up to $5 billion in costs per year.

By the end of September, the overall mining difficulty of Bitcoin had dropped significantly to 19.93T (about 14.61G). If we look at the current market situation, the growth rate of the overall network computing power this year will be much slower compared to 2017. Theoretically, the halving will bring pressure to the entire market, making it more unstable. However, Bitcoin will maintain this state until next year.

Why mining is not profitable in 2018

According to cryptovest, many people believe that mining is not profitable in 2018 due to the sharp decline in the price of Bitcoin. Why is that? The reasons are as follows: Since Bitcoin is one of the underlying technologies of digital currency and blockchain, when you buy BTC, you need to consider whether the price of Bitcoin can remain stable. In addition, if BTC is not widely used and cannot be used as a payment method for transactions (because Bitcoin is anonymous), its value will decrease. Moreover, if you are using cryptocurrencies such as Bitcoin Cash or Litecoin, their value will also decrease.

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