Research: Profitability Of Bitcoin Mining Has Reduced
Bitcoin miners’ income for the first six months of 2018 hit record $4,7 billion, however, constantly growing competition and increasing computing difficulty make bitcoin mining less profitable and small players become disadvantaged. This is said in a research made by analytic company Diar.
It is notable that the profit made during the first six months of 2018 exceeds the profit made during the entire 2017 by $1,4 billion, while the miners themselves earn about 54 000 BTC monthly.
Regardless to this fact, the ones of them who has to pay for electricity at retail, bore losses in September for the first time in several last years, the analysts claim.
At the moment, China is one of few countries where it makes sense to mine bitcoin because of electricity cost: 1kWh costs $0,08 in average. However, equipment cost, staff payment and other expenses make biotin mining almost unprofitable for small enterprises because of the current bitcoin rate, which also has been the same in biggest part of 2018.
According to Diar data, only major pools controlled by Chinese mining equipment producer Bitmain still can make profit on bitcoin mining. But, according to Bitmain’s own data, the company gets 95% of income due to selling equipment, not due to cryptocurrency mining.
Moreover, Bitmain will have to distribute its computing powers between various countries to reduce electricity costs and make the farms belonging to it remain profitable. In particular, it’s planned to set up three new data centers in USA in Q1, 2019.