Bitcoin mining South Africa – Bitcoin ASIC miners litecoin vs bitcoin mining 2015 profitability in South Africa. Do you want to mine bitcoin in South Africa? What is bitcoin cloud mining? How much does bitcoin cost in South Africa?
Have you decided to start bitcoin mining in South Africa? Are you wanting to make lots of money mining bitcoin? You might need think carefully about how much money you are willing to risk, as bitcoin mining is a very risky business. After getting countless emails and cries for help from people who have tried and failed at bitcoin mining, this article is to warn people that while you can make money, you can also lose a lot of money. New users of bitcoin are the most excited about possibly earning a living from mining bitcoin, or even just to have it as another stream of income. The reality is though, that bitcoin mining is expensive, requires adequate technical knowledge of bitcoin and the mining process, as well as some level of computer skills and possible troubleshooting or problem solving skills. Bitcoin mining is kind of the digital equivalent of the analog mining for gold.
In the old days, if you were a gold miner, and were lucky, you could make a fortune. The problem was then that everybody decided to also start mining gold, and soon all the easy to find gold was gone. The harder to find gold was deeper in the ground or rock, or needed bigger and more specialized equipment to mine it. This is sort of the same with bitcoin mining. The easy to get bitcoins were mined years ago when you could use your laptop or home computer to mine a few bitcoins a day. These days you need the top of the range ASIC miners to stand a chance of mining any bitcoin, and they dont come cheap, or with a guarantee of being profitable.
This is especially true since the bitcoin halving, when mining profitability was cut in half, an event that happens roughly every 4 years. No matter how much bitcoin you can mine each day, and how much it is worth, you are not profitable until you have earned MORE bitcoin than you have spent on your hardware, electricity, internet, or any other costs you might have like rent, customs fees, or even petrol. You need to FIRST cover the cost of your mining hardware and all running costs before you are profitable. Profit calculator websites on the internet generally do not offer the full picture, and many times they are completely wrong. The amount of bitcoin you mine each day is generally on a constant downward trend due to the increases in the mining difficulty. Most profit calculators will tell you what you can earn with bitcoin mining today, and then they multiply that figure by days over time, without reducing the daily amount of bitcoin you earn due to the mining difficulty increases. The fact is that your mining hardware will generate LESS and LESS bitcoin over time.
Once the bitcoin you are generating each day is worth less than your running costs, its time to turn off the bitcoin miner as it would be cheaper for you to just buy bitcoin. You need to have already covered the cost of your mining hardware and all other costs by this time, otherwise you would have made a loss. Most miners only realize they might not get a return on their investment when it is too late, because in the beginning, the first 6 months or so, the profits look good. After the 6 month window, the declines in profit are far more noticeable. Most computer hardware has a lifespan of around 3 to 5 years, and bitcoin miners are much shorter than that.