If you have known little bit about cryptocoins or BTC by now, you must have known the insane return possibilities they promise. This one particular reason is largely inspiring businesses to invest in mining BTC to generate more coins and trade for excellent rewards. But, would BTC mining be actually profitable for SMEs? Well, now that would beget a mixed response and here is a discussion below that will help you to get a clear picture of the whole situation.
Mining could be risky
If you need an answer in one line to the above mentioned question, well it would be- BTC mining could be risky for small businesses. Why so? The prime reason here is that mining has become extremely expensive today. Small businesses are usually lean on capital. They hardly have the robust financial backup needed to mine the cryptocoin successfully. Thus, when they invest in mining, it deals a heavy blow to their overall treasury; the returns they receive are often unable to cover the massive investment they have made in mining.
Mining is becoming increasingly costly
Now, initially, the mining costs were really low as you would have only needed regular computers here. But, these days you need specialized ASIC systems which demands massive electricity that drive up the costs big time. In other words, owning ASIC systems is mostly possible for big businesses. For small businesses, the high setup cost would gobble up much of profit possibilities of Bitcoin mining. So, yes, Bitcoin mining could be extremely cost-intensive for small entrepreneurs.
Reduction in rewards
Moreover, the mining rewards are reduced in half after every 4 years. In other words, the protocol means miners will reap less rewards with every passing year. And that might definitely hamper your profit possibilities especially when we already know the current mining process is hugely expensive.
Is there any solution?
The points mentioned above are absolutely true. But that doesn’t mean small businesses have to lose all hopes on Bitcoin. Bitcoin and cryptocurrencies define our future and small businesses should be a part of it to strive in the market. The good news is BTC prices are all set to surge with Bitcoin halving come May and this has inspired more aspiring traders to join the market. In fact, today you will even find various trading platforms like Bitcoin Revolution. What is Bitcoin Revolution? Well, it’s a leading BTC trading app that promises credible trading experience with more than 99% precision or accuracy.
But, how to make the most of the situation when mining could be costly. The simple answer here is to go for mining pool. A pool is where you share the mining activity with other miners and hence you don’t have to bear the entire set up cost for mining on your own. Yes, the rewards too would get divided but something is still better than nothing. You can also bank on cloud mining here where you don’t have to own a mining setup and just need to sign up for lease of processing power. It’s like paying rent for mining which will help you to reap rewards without investing much on mining infrastructure all on your own.