The Increase of Bitcoin Mining Profit Margin for the First Time Since 2017
In 2018, the condition of Bitcoin and cryptocurrencies was not good at all. More precisely, since January 2018, the price of Bitcoin has fallen in a considerable and worrisome manner, and the profit margin for investors in the field of cryptocurrencies was not any better. However, it has been a while that the growth in the profit margin has given hope to many stakeholders and those active in the world of cryptocurrencies, and this is the first time in the past year that the gross profit has reached to 39 percent from 32 percent. The increase in the gross profit is indicative of the development of the facilities that work more efficiently in the path to generate Bitcoin.
Increase in the Profit Margin and Good News for Those Active in the Field of Bitcoin
Many of the people who are active in the Bitcoin market lost their assets in 2018. Those who did not have enough funds to update Bitcoin mining equipment and were not able to implement newer and more efficient equipment to work in the crypto market are doomed to failure and have to exit the market. Investors and those who are engaged in mining Bitcoin have no other way but to update their hardware and software systems in order to survive and remain in the market.
Without the necessary equipment to mine Bitcoin efficiently and quickly, many of those who mined Bitcoin individually or in small companies are set aside from the crypto market. Regarding the fall in the Bitcoin price and other cryptocurrencies, miners; i.e., micro miners no longer can pay their electric bills. Bitcoin mining profitability and profit margin are not only dependent on the cost of the electricity used for mining, but the other factor influencing the profitability of mining is the price and value of Bitcoin.
Bitcoin Mining Equipment Market and Market Value
As it was mentioned earlier, there is a direct relationship between the value of cryptocurrencies and Bitcoin mining hardware equipment. With the fall in the value of Bitcoin during the last year, many of the Chinese mining companies were no longer in the competition. However, how can Bitcoin mining turn into a profitable activity? What is its profitability process? The truth is that the affectability of the crypto world from different factors leads to intense turbulence in its value. For example, even though 2018 was not a good year for Bitcoin and other cryptocurrencies, it cannot be expected that this trend will not continue in the coming years. In the early months of 2019, we saw a growth in the Bitcoin market which makes the return of Bitcoin to its heyday more than before. Given that the cryptocurrencies have a very turbulent world and can affect the profitability of mining, investing and activity in the field of mining cryptocurrencies can be profitable or unprofitable. Though any other trading or investment field are affected by various factors and are threatened by numerous potential and possible dangers, but this turbulence and the unpredictability of mining Bitcoin and other cryptocurrencies will show itself more.