Is Bitcoin Mining with ASIC Miners And Bitminers (Antminer) still profitable In 2019?
2 on Is Bitcoin Mining with ASIC Miners And Bitminers (Antminer) still profitable In 2019?7 min read
History of ASIC Miners and AntMiners (Bitminers)
If you have been familiar with the cryptocurrency market, then the concept of bitcoin mining should not be novel to you. Be that as it may, bitcoin mining refers to creating bitcoins from your computer. Following the above, after bitcoin hit the crypto market in 2009, it was mined through the use of CPUs than GPUs after which miners went on to the use of Field Programming Gate Arrays (FPGAs). Miners however still desired better effective mining hardware that would provide them with more reward for the same quantity of energy consumed. This led to the creation of obtainers and powerful Accessible Specific Integrated Circuit. (ASIC) rigs.
Following this evolution, in the year 2018, miners were faced with difficulties in going on with the bitcoin mining process due to the depleting value of bitcoin among several other things. Due to the struggles of mining encountered in 2018especially the dwindling bitcoin value, one might wonder if bitcoin mining is over. This article seeks to discuss the mining possibilities of bitcoin in 2019 by ASIC and Bitminers (Antminer). Before this is done, a follow up on ASIC mining in previous years would be done.
Bitcoin Mining In Previous Years Using ASIC Miners And Bitminers (Antminer)
Following statistics, it is quite evident that cryptocurrency mining is to a large extent dependent on the prices attached. This is especially applicable to the bitcoin cryptocurrency. Looking at bitcoins historical transactions, until the year 2011 bitcoins price stayed steadily under $1.00. In the year 2013, this price experienced a notable incline to $1000 after which It began to drop in value. Going on, in the year 2015, bitcoin had it going well, it started at $200 and then skyrocketed thereby causing a huge influx of miners. Shortly after that, in 2017, ASIC miners for bitcoin mining was largely engaged.
This caused Bitmain and other manufacturers of hardware to earn more than sufficient profit. Among the ASIC miners produced there were the Antminer S9 and S 15. The Antminer S9 had a commendable large share and a hash rate of 14 Th/s. As at the year 2011, the hash rate of the bitcoin network was placed at 1 Th/s. This translates to the fact that with such instrument any miner would be approximately ten times more effective and powerful than the entire network. Due to these results, Individuals were willing to purchase the Antminer S9 for as high as $5,000.
As the years went by, bitcoin hash rate increased in leap and bounds. 2013 had the hashrate equaling ten Antminer S9 devices. By 2015 the hashrate was 400,000 Th/s corresponding with 30,000 S9 devices. From2017 to August 2018 bitcoin hashrate was at its peak reaching approximately 14,000,000 Th/s and 1,000, 000 S9 devices. During this duration, everyone with an idea about mining jumped right in. Mining was on an industrial scale. However, after this point, the stagnation began. Winter took over the market and it was a long period of setback. The number of miners stopped increasing and the present bitcoin price is not enough to acquire any new equipment.
Bitcoin Mining Possibilities In 2019
Having understood the operations of ASIC mining in previous years, Antminer S9 currently rakes in $2.24 each day while eating up 33.6 kWh. A kWh is priced at $0.07. If you do the maths of mining at the price of $0.07 each day and making only $2.24 after the mining process, by the close of the day you are left with virtually nothing. Some miners in diverse countries around the globe have weighed their options have resorted to hanging up their mining robes. These actions indicate that if the cost of electricity consumption goes high this year, a lot of miners would give up the trade.
In line with the above, the future of mining in the year 2019 is highly dependent on the price of bitcoin and electricity. If bitcoins price increases and the cost of electricity reduces or stays at the same rate, mining will keep evolving. If bitcoins price decreases, so would the number of miners. Furthermore, before ASIC miners start calculating their profit made, they deduct expenditures spent on paying off equipment, taking care of maintenance and repairs. If the amount left over is far from encouraging, then a lot of miners will slowly go missing and the only miners left in the market would be those ambitious to take over the bitcoin network thereby securing their positions in bitcoins mining sphere. In summary, the mining process is solely dependent on profitability.
On a final note, miners all over the world are of the opinion that taking into consideration the current price of things, it is unwise to invest in fresh to the scene ASIC miners. This is because there would likely be no return on investment. However, things might begin to look better over time as mining is quite unpredictable. Miners with assets and deep wells of finances who understand this unpredictability may attempt to push the boundaries by staying on the market thereby strengthening their position in the bitcoin network. Smaller miners, on the other hand, are of the opinion that returns on investment should be made between the space of two to three months, otherwise there is no wisdom in mining. Hence ASIC mining of bitcoin in 2019 is largely dependent on the prices and the possibility of profit.
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