So this is a total opinion piece here.
I have been mining Bitcoin for about 4 years now. I do cloud mining, I don’t own my own equipment to mine. I buy mining contracts that have expiration dates unless it is a lifetime contract some companies offer at a premium.
Yesterday I read an article about a company that was going to open a 700 million dollar mining farm in upper New York somewhere. I immediately thought that was a big mistake.
Think of Bitcoin as a large pie. The people and companies that mine Bitcoin are each getting a piece of the pie.
The more people mining, the more power they have the less of a slice of that pie they get.
What is happening with the small miners like myself is that when more people and companies start mining we get paid less, so much so that now most small miners are not making enough to pay for equipment or electricity. So only the big mining outfits are the only one who thrive. Maybe the small ones that don’t have to pay for electricity or pay very little for electricity make a profit worth mentioning.
This is going to happen (again in my opinion) is that enough companies are going to get into mining who have cheap equipment and or electric cost that soon even the big mining companies are going to face a lower payout that can not be maintained. They are going to be the same as little miners are now that have to stop mining because of the lower payouts.
My thoughts are this:
- Only the biggest miner with the lowest costs are going to be left.
- All this could be a moot point if the Bitcoin price goes up faster than the difficulty(amount of hashrate determines this). Payouts will go up if that happens. But sooner or later the amount of people eating that pie is going to make it so all that is left is crumbs.
- Mining for Bitcoin is not worth it for individuals or small miners.
- If a company looks at mining other coins like ETH or BCH and others, they are likely to make a ton more money than mining Bitcoin.
I am going to wait and watch all this happen, probably in the next year or so. I am switching my cloud mining from Bitcoin to ETH.
Good Luck guys.