What is more profitable – to buy equipment and mine, or to conclude a contract for the rental of computing power in the cloud service ? What will bring more profits when mining cryptocurrency?
In the largest cloud services like IQMining and BitDeer, which provide rental services for the computing power required for mining cryptocurrency, we are sure that mining can be profitable, even if the price of Bitcoin is only $ 3,700. Recall that back in May of last year, bitcoin cost 10,000 dollars on some Asian crypto-counters, and then this level seemed too low.
Despite the fact that all of last year we observed not only the decline in prices of most cryptocurrencies, but also constant informational stuffing, that either one mining company or another is beginning to experience financial difficulties, this does not correlate with the reality in which miners could get cryptocurrency in the amount of 15.4 billion dollars, if carried out calculations based on data from the research company Diar.
The break-even point of mining is not at the level of $ 6,500, as analyst Tom Lee from Fundstrat Global Advisors thought, but lower, and it decreases all the time, reacting to the appearance of both new types of equipment and interesting offers for renting hashes.
Is it possible to consistently make money on mining, and what is better – renting computing power or buying equipment? Let's look at the numbers. If we consider the BitDeer contract for 360 days, then compared to working on equipment that is popular with miners, the price for leasing is 1 terrahesh per second, which corresponds to the current receipt of 0,00004191 BTC, will be the lowest (see table №1).
Thus, rent is more profitable than the purchase of equipment, since 1 terrahesh will cost in this case for the miner cheaper.
The same conclusion leads to a comparison of the payback period of the costs for the BitDeer rental contract and the “beating off” of funds when investing in mining equipment . For the calculations, the results of which are shown in Table 2, the key parameters that are uniform for all the examples are taken: electricity tariff — 0.0652 $ / kW / h and bitcoin mining complexity — 6.00 T.
Thus, the BitDeer contract pays off in just 186 days. In most cases, this is the deadline for which the money spent is returned to the client: if he reinvests the received daily payments, for example, on a replenished bank deposit, the resulting interest will help to reduce the payback period in days.
In addition, the larger the value of the terraheshs for which the contract with BitDeer is concluded, the less the purchase price of 1 terrahesh becomes for the client, and this makes it even more profitable for the miner.
Additional advantages of renting cloud computing power compared to the purchase of mining equipment?
Failures of any equipment can always happen, but the client can be calm: the company will not stop mining cryptocurrency in its interests, but simply use other equipment available in reserves.
The client also does not need to think not only about how to choose mining equipment, but also how to assemble a mining farm , install it, as well as pay for rental of premises, and in some cases hire employees for management. Simply sign a contract with BitDeer and mine with the help of professionals in this field.
It is worth noting that from January 18, 2019, the BitDeer service is Russified , which makes it even more convenient for users from Russia.
We also recommend that you familiarize yourself with the current rating of reliable cloud mining services for 2019 .
