Yes, Bitcoin trading is profitable in 2021 but has some barriers to cross. You need to be fairly tech-savvy which is where most newbie traders get discouraged from attempting to make their personal Bitcoin trading PC. Nevertheless, Bitcoin trading continues to scale up in terms of its growth and efficiency. That means there are newer strategies like yield farming through which you can earn Bitcoin by leveraging your existing crypto assets, for generating a return.
In this article, we have posted an update on the major aspects driving Bitcoin’s growth to help you get started with its trading. Also, we have put tips on what you would need to build a Bitcoin mining rig.
Major Driving Factors for Bitcoin’s Growth
The functioning of Bitcoin, alongside the entire crypto world, is based on an ever stronger foundation. Long-term miners and crypto investors, who pursued the age-old crypto trading trends and held onto those assets, have garnered huge profits for over many a time.
Let’s check out the three main factors driving Bitcoin’s current and future growth:
Mass Awareness and Acceptance
Being the first-ever cryptocurrency to hit the digital market, Bitcoin was neither so renowned nor did it get much acceptance at its budding stage. However, over time, mass awareness of Bitcoin and its trading began to push its growth in the crypto world, increasing its demand. This includes the acceptance and involvement of both individual bitcoin investors and miners, boost in Bitcoins traders due to the introduction of an easy-to-use app to trade bitcoins, in addition to other major financial entities.
According to a Forbes report, even the giant financial organizations are beginning to invest in Bitcoin, which is evident from a massive upsurge in CME contracts for long-term Bitcoin. Forbes stated that this “kind of growth is more than three times the heady 425% increase in Bitcoin’s price over the last year and a further representation of the unprecedented level of demand for exposure to the asset class among institutional investors.”
It seems as if only this trend will be continued, with Morgan Stanley currently turning out to be the first major bank to give its creditworthy clients the power to make investments through Bitcoin. That is just some days after Bitcoin hit a new record value of sixty thousand dollars per unit.
Limited Bitcoin Supply
The supply of Bitcoin and other certain cryptocurrencies are apparently available in finite supplies. So, with the passage of time and more people accumulating crypto assets, miners are looking for an increasingly reduced supply of Bitcoins. To reduce cost-pull and facilitate growth, most cryptocurrencies regularly go through what is called a “halving” event.
Basically, this increases the number of remaining supplies of Bitcoins by two times, which are left to mine. However, it also limits the price of bitcoin. For instance, after the halving process, they take place at every 4 years interval – i.e., if you currently have 2 Bitcoins in your bitcoin wallet, it will turn to 4. In simpler technical terms, the halving process occurs after every 210,000 block creation. With that being said, there will be only 32 halving events ever.
Processing Profitability and Power
The biggest cost associated with Bitcoin mining is the amount of energy you consume in the entire process; regardless of it being a part of a major crypto farm or a single rig. The overall energy impact of the industry has been conventionally a simpler way to measure growth, and as per The Guardian report, it turned out to be identical to Argentina’s annual carbon footprint. Their data is derived from the Cambridge Bitcoin Electricity Consumption Index, which provides up-to-the-minute details of the impact of energy related to mining.
When users and analysts discuss an increase in the consumption of energy, the ultimate dramatic shift is customarily associated with the recent rise in acceptance. An increase in the number of miners, increases more crypto mining rigs, ensuing in more energy consumption. However, some research states that the price of Bitcoin mining has not changed much over the last 10 years.
Tips For Bitcoin Mining Rig
As mentioned above, the price of Bitcoin mining is more or less constant compared with last decade. Though Bitcoin’s value hasn’t fluctuated much, the method used by the miners to create Bitcoins has changed over time. Established cryptocurrencies like Bitcoin need a crucial hardware solution called ASIC (Application-Specific Integrated Circuit), rather than graphics cards and home computers.
ASICs are available in varied sizes and shapes. Each has specific cooling and maintenance requirements, typically if your operation enlarges. Luckily, there are a myriad of tools available to facilitate Bitcoin miners in determining the mining costs by using a dedicated piece of hardware. Antminer is one of the coveted brands that provides a full array of hardware products. It is a prudent choice to safely begin with your Bitcoin mining journey.
The good part is you can yet access other crypto assets through standard desktop PCs. But it is better if you do your part of research first. NiceHash or any other crypto profitability calculator, etc., are generally suggested to check if you can make money to counteract your tech investment and energy consumption.