The majority of crypto prices are once more dropping as fears of an impending crypto winter makes rounds in the ecosystem. This fresh downward price action largely affected crypto mining. As a result, the mining sector saw many difficulties. Digital asset prices were constantly dropping. Which is why it was nearly impossible for miners to making enough profits for their efforts.
The Creation of Cloud Mining
Home mining has actually been a problem in recent years. However, since crypto prices went big, and started drawing attention, mining became profitable. Mining digital assets like Bitcoin and Litecoin became the most profitable because the prices of both coins always tend to go high. Even though the cost of mining gets higher, the value of the tokens being mined is always capable of covering for these lapses.
This has motivated more miners to mine these two coins. But, the high level of competition, and appearance of crypto mining farms, has ensured that home mining becomes almost impossible. Which triggered the development of new way for mining. Hence, an alternative was invented which is known as cloud mining.
Mining from Home Can be challenging
Mining Bitcoin from home can be demanding and won’t be the same as a mining farm will do. Hence, the key reason why renting miners is more beneficial. There are a large number of advantages of renting miners including the cost of electricity and additional fees. Then, we have better security, industrial-grade ventilation, privacy, capable tech support, and uninterrupted internet to name a few.
For mining from home, we have to consider the cost of electricity which can take 24% of mining revenue. There’s also the issue of maintenance of equipment, which typically requires skills. Wiring might be a fire hazard. The Internet can be unstable. Electricity might be irregular and much more. Apart from that ventilation won’t be ideal in the home environment, which can shorten the lifespan of the product. There’s also the issue of high noise levels.
Additionally, there are concerns that renting miners will cost more or require huge capital which is wrong.
Litecoin and Bitcoin are the Most Profitable Options for Mining
Of course, purchasing mining rigs can actually be very expensive. The traditional mining will require large amounts of resources including energy/electricity, computing power, and much more. But, these are not really the issues that miners can expect to face when looking to employ the services of any cloud mining firm or deciding to rent miners. There’s more involved.
When it comes to mining Litecoin, we can see that the coin has just a few weeks before its miner rewards halving event. Right now, the coin is following an identical behavioral pattern as it followed the last time there was a halving event. This typically includes a significant price increase happening just before the mining rewards are split in half.
Hence, this makes the digital asset very profitable to mine. This is true at least for this moment as we approaching LTC’s halving event. This is also the reason why the coin has attracted a bit of interest from the crypto community and drawn the attention of investors. Bitcoin’s case is easy. It just keeps rising and it is the leading digital asset.