cryptocoingossip

Bitcoin is the Internet Gold now.

And both Gold, Bitcoin share many similarities.

Like both have a finite supply and created by the miners, but one big difference is here in Bitcoin mining done by using computers.

Especially in mining both Gold and Bitcoin becoming difficult day by day and Gold making a way for big corporations to control the mining activities.

But in Bitcoin thanks to mining pools and other different mining mechanisms Bitcoin holds its dicentric nature; however, we cannot ignore the fact that Bitcoin mining becoming harder and harder every day making mining not feasible.

And this left the question Why Bitcoin mining is becoming harder and harder every day?

In this post, I’m going to limelight some points on why Bitcoin mining becoming harder every day.

First one is.

#1 High Competition.

As I mentioned earlier Bitcoin is Internet Gold and given more return to its holders than any Asset in the world since its inception.

Higher the return more people joining the Bitcoin network.

When more people joining the network puts miner into more work of storing and confirming transactions.

The heavier work leads to miner getting a more fee and earning the reward.

More fee and reward attract many people to do the Bitcoin mining.

Just look at the below image that shows how mining hashrate increasing every year.

When competition arises, miners come with the heavy hardware components like ASIC to get ahead with other miners.

This demotivates many miners who want mine Bitcoin with low power hardware.

And yes there are solutions available in the form of mining pools, that let you join along with other small miners but this kills the dream of earning Big reward.

#2 Halving.

Halving is the event in Bitcoin network that cut off miner reward in half after every 210,000 blocks mined successfully.

Recently in May 2020 3rd Bitcoin halving accrued and with it, miner reward goes 12.5 BTC to 6.25 BTC.

And still, there is no strong evidence that prooves the halving discourages miners to do mining in Bitcoin but think about it from a miner perspective.

Suppose if you’re started Bitcoin mining recently investing a good amount of money in mining hardware’s aiming to make a profit in 1 or 5 years and suddenly halving accrue makes your earning half then your estimated time to get into profit position also increases.

Yes, you can argue that transaction reward also increases with it, but there is less probability you can get a higher amount of transaction to earn a high reward every time.

#3 Hardware Price.

Mining one of the way to earn Bitcoin but you have to make initial investments in mining hardware’s like GPU’s, Boards, Wires, CPU, Fan’s, or if you aiming at a higher profit then ASIC components.

As I mentioned earlier, there is heavy competition in Bitcoin mining now, so you need more GPU’s or ASIC’s lined up to do mining for achieving the profit position early.

When you add each GPU or ASIC component to your mining rigs you’ll have to spend money on it and have to bear some extra cost comes with it like buying wires, etc.

Normally a good mining GPU will cost you about $500, and you’ll need at least more than 10 GPU’s to mine Bitcoin for earning a steady income, or if you head up to ASIC then, your cost will double.

#4 Electricity Cost.

When you adding more hardware components and building more mining rigs, it will consume more electricity, and you’ll have to bear more electricity cost.

Even in some countries, electricity cost rises continuously if you’re living in those countries your electricity cost will rise no matter you install more hardware’s or not.

These ricing electricity bill every month somehow directly impact on your standard of living so Bitcoin mining become not feasible in the long run.

#5 Environment Condition.

GPU’s and ASIC’s runs effectively in cool weather conditions.

If you’re not living in a country which doesn’t have long winter season then your hardware components life will fall rapidly than the mining hardware that running in a cool environment.

And if you try to cool the hardware by adding more fans then, that lead to you bearing high electricity costs.

That once again leads to the problem what I mentioned in the previous point not only that with a hotter environment hardware components life shrinks faster that leads to you more loses in Bitcoin mining.

Conclusion.

Ok, these are the reasons what I think that makes Bitcoin mining hard.

But as I showed you in the first point that competition in mining increases that shows the condition even there are more problems exist to mining people still attracting to Bitcoin mining.

Still, you’ll have to consider all the downside and upside of Bitcoin mining before getting into it also there is no easy way to earn Bitcoin even mining have these difficulties.

So what you think about the points that I have made or you want to add some more feel free to mention those in comments.

If you got some valuable insights from the post then, don’t forget to share it with your family and friends.