Satoshi Nakamoto designed the mining activity for bitcoin as a way to make the network sustainable. Thus, to blockchain work, the network need to have computers mining transactions all the time. What can incentive people to use his computers to make the blockchain of bitcoin working? A reward paid by the bitcoin’s algorithm. So, that’s it that the Miners search for.
But actually the activity of mining cryptocurrency is a good business? The answer can be yes or no, depending of the context. It means that the crypto mining can bring profitable returns, but just if work in a professional environment, it isn’t to amateurs any more. It’s an industrial operation that requires an investment of hundreds of thousands of dollars in powerful softwares and hardwares.
In an interview with PanoramaCrypto, Rudá Pellini comments about return expectations, billing prospects, and opportunities of the crypto mining market. Rudá Pellini is a Director of Business Development at Wise&Trust, a digital asset investment company with operation on USA and Brazil.
Still profitable today to mining cryptocurrencies?
Yes, today it is still profitable to mine cryptocurrencies, but it has become an industrial operation. Mining at home I do not think it’s profitable.
What are the requirements for someone who wants to start a company to mining cryptocurrencies?
It’s an industrial operation that requires intensive capital, financial resources, good deals with suppliers and applied technology.
What is the investment needed and what kind of equipment does it have to be adquired?
For the operation be profitable it is necessary to have a vision of scale economy. In that sense, we are talking about minimum investment around hundreds of thousands of dollars. About the equipment, we use a proprietary hardware solution with GPU application, but there are still many investments in ASICs.
What is the expected ROI (Return of Investment)?
Considering the current average difficulty and the cost of the hardware of January 2019, we can consider the return of the investment in 5 to 6 months.
Is it worth undertaking alone in this area or is it better to join established companies or form a large mining company?
As previously stated, it does not make sense to mine alone, after all we are talking about a business on an industrial scale. Depending on the circumstance, it may be profitable in the short term, but it makes more sense to partner with larger companies.
What is the monthly billing of a mining company / venture?
It depends mainly on the size of the operation. Bitmain, for example, had revenues of about $ 2 billion in 2018.
Is it mandatory to have advanced knowledge in computer programming?
It’s imperative to have a multidisciplinary team with members with knowledge to codes. It’s a large-scale business where multiple skills are required.
Today where are the biggest miners in the world?
Much of the operations have long been concentrated in China, Iceland and Russia, because they have favorable weather characteristics and low-cost energy. But, countries as United States and Canada also have grown as a choice to place a crypto mining business.
