The Future of Bitcoin Mining: Will Mining Bitcoin Be Profitable in 2019?

Over the past few years, Bitcoin's price fluctuations have attracted widespread attention, especially in the mining industry. As the Bitcoin Mining Index continues to grow, many investors and miners can't help but ask: Can mining Bitcoin still make money in 2019? This question is not only about profits, but also about the future direction of Bitcoin, the advancement of mining technology, and changes in the market.

The creation of Bitcoin began in 2009, and its initial value was almost negligible. However, as its popularity increased, especially after the price of Bitcoin soared to nearly $20,000 in 2017, more and more people began to pay attention to Bitcoin mining. The process of mining Bitcoin involves complex calculations and a lot of electricity consumption, so miners often need to invest huge amounts of money in equipment and electricity bills. As the price of Bitcoin rises, the benefits of mining activities also increase, attracting a large number of investors to enter this field.

However, the market environment in 2019 has changed significantly compared with the previous two years. First, the price of Bitcoin experienced a round of deep adjustment in 2018, falling from its peak to more than $3,000, which greatly reduced the income of many miners. At the same time, global regulation of Bitcoin mining has also begun to strengthen, and governments have gradually become more cautious about cryptocurrencies, which has caused miners to face more uncertainties in their operations.

In this context, we need to analyze the profitability of mining Bitcoin in 2019. First, miners need to evaluate their cost structure, including equipment investment, maintenance costs, and electricity costs. Taking electricity costs as an example, miners usually need to mine in areas with relatively low electricity prices to reduce operating costs. In some provinces in China, due to abundant hydropower resources and relatively cheap electricity prices, a large number of miners have been attracted to set up mines.

Secondly, miners also need to pay attention to the difficulty of Bitcoin mining. The difficulty of Bitcoin mining will be adjusted as the number of miners involved in mining changes. As the number of miners increases, the difficulty of mining will also increase. This means that even if the price of Bitcoin remains stable, the income of miners may be affected by the increase in mining difficulty. Therefore, miners need to flexibly adjust their mining strategies to cope with market changes.

However, the profitability of mining Bitcoin in 2019 also faces some challenges. As market competition intensifies, many small miners may be forced to exit the market. In order to remain competitive, miners must continuously optimize their operating strategies and pay attention to market dynamics. In addition, miners also need to pay attention to policy risks, especially in some countries, where government regulatory policies on Bitcoin mining may affect miners' profitability.

In the process of mining Bitcoin, miners need to consider environmental factors in addition to economic benefits. Bitcoin mining consumes a lot of electricity, which has a certain impact on the environment. Therefore, many miners have begun to explore the use of renewable energy, such as solar energy and wind energy, to reduce the impact on the environment. This will not only help improve the sustainability of the mine, but may also become a new highlight of future miner competition.

In general, it is still possible to make a profit from mining Bitcoin in 2019, but miners need to be flexible. By optimizing the cost structure, paying attention to market dynamics and technological innovation, miners can seek opportunities in this challenging market. In addition, miners also need to pay attention to environmental issues to achieve sustainable development.

Looking ahead, Bitcoin mining will continue to face many challenges and opportunities. With the advancement of technology and changes in the market, miners need to constantly adjust their strategies to adapt to the new environment. For miners who are willing to invest time and energy, 2019 is still a year full of hope. In this uncertain market, only miners with foresight and flexibility can remain invincible in the future of Bitcoin mining.

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Generally speaking, miners in large mining pools come from all over the world. Before 2010, people could mine Bitcoin with central processing units (CPUs); after that, an anonymous person named Artforz used a graphics processing unit (GPU) to mine Bitcoin, which became a hot topic in the Bitcoin community. In July 2010, Artforz said he mined 1,700 Bitcoins in 6 days and had about 4% of the world's computing power. In less than three months, someone claimed that "Artfarm" controlled 20-30% of the computing power of the entire network.
In September 2012, the second year of the nascent Bitcoin network, the processing capacity was only 1000000000000 (10 trillion) hashes per second.
Artforz creates GPU
A year before Farm started mining Bitcoin, Satoshi Nakamoto said: “We should have a gentleman’s agreement to postpone the GPU arms race as long as possible for the benefit of the network; new users can join without worrying about GPU drivers and compatibility, so they can get started quickly. I am glad that now anyone with a CPU can participate in fair competition.” In November 2010, the GPU arms race led to the establishment of mining pools. At that time, Marek
Palatinus (Slush) created the first mining pool, SlushPool, and the addition of GPU-enabled computers made mining very difficult for others. Joining mining pools and sharing profits began to gain popularity, and in the summer of 2011, FPGAs appeared.
Artforz was one of the first individuals to set up a GPU mining farm, and was estimated to control 20-30% of the network's hashrate in 2010.
Many miners realized that once FPGAs were created, specific integrated circuits (abbreviated as ASICs) would soon be available. Unlike the machines used in the past, ASIC miners are integrated circuit miners with a specific task, which is to participate in mining using the SHA-256 algorithm; the emergence of ASIC miners and mining pools quickly made Bitcoin mining evolve into an industry, while amateur miners gradually disappeared with the passage of time; CPU, GPU and FPGA mining gradually faded and finally left the mining stage in 2013. Subsequently, Avalon released the first set of ASIC miners, and Bitcoin witnessed Bitmain, Kncminer, Hashfast, Bitfory, Cointerra and Butterfly
The birth of companies such as Bitmain Labs (BFL). From here, the mining ecosystem went into overdrive, with some large mining pools like Ghash.io and Btcguild gathering about 51% of the computing power of the entire BTC network. Although many mining pools have gone bankrupt due to poor management, companies like Bitmain, Bitfory and Slushpool have persisted and become more and more prosperous over the years.
It was not until January 2016 that the BTC network computing power reached 1EH/s.
Exahash Era
BTC hashrate is 75-80 EH/s on August 11, 2019.
Currently, the processing speed of the BTC and BCH chains is as high as 75-80 EH/s, BTC is 75 EH/s, and the BCH network is 2.24
There is no doubt that 80EH/s is an important milestone for the BTC network, and the indicator is steadily approaching 100.
EH/s, which would be 20% of a Zetahash. One Zetahash per second (ZH/s) is 100000000000000000 (a sixth power) hash per second. After the hash war in November 2018, 4-5
The processing power of EH/s is split into two parts (BCH and BSV), and both chains are below 1 EH/s. Today, the computing power of the BCH chain is gradually increasing, and has exceeded 2EH/s in recent months.
BCH hashrate on August 11, 2019 – 2+EH/s.
In the second year of the BTC network, the processing capacity was only 1000000000000 (10 trillion) hashes per second (10 times/second). Due to great technological progress, the speed of a single mining machine can now exceed 10 times/second. After the second anniversary of the fork in 2017, the computing power of BCH increased to several thousand times the original. There are nearly 14~15 known mining pools on the BCH chain, and about 29% of the computing power comes from unknown mining pools. There are currently 12 known mining pools processing BTC transactions, and 14% of mining power is controlled by unknown mining pools. In addition, six well-known BTC mining pools also support the BCH chain, so there is always continuous computing power dedicated to both networks. The four largest BCH mining pools are btc.com, antpool, poolin, and bitcoin.com.
BTC and BCH hashrate distribution on August 11, 2019.
Mining Equipment Upgrade in 2019
In December 2018, during the lowest point of the crypto winter, only 5 SHA-256 mining machines were profitable. With an average electricity cost of $0.13/kwh, machines producing more than 28EH/s only made a profit of $0.27 to $1.39 per day, depending on the model. Now there are more than 40 mining machines on the market that are profitable at $0.013. The top mining machines with the most profits currently include Whatsminer
M20S and three Bitmain models. Micro Whatsminer M20S (70 times/s) with a daily profit of $10.49, three newly produced Antminer
The S17 series (50-56EH/s) makes a profit of more than $9 per day. The top mining machine manufacturers in the second half of 2019 include Bitmain, Canaan, Ebang, Innosion, Strongu, and Microbit.
The six most profitable SHA-256 mining rigs (average electricity cost of $0.13 per kWh) in August 2019.
It will be interesting to see how mining develops over the next 10 years. A lot of money and electricity resources will be used to mine SHA-256 cryptocurrencies. Many of the mining chip manufacturers mentioned above have made a lot of money from this and have become top IT companies in the world. As a result, last December, large mining companies such as Canaan and BIT filed for initial public offerings (IPOs) in the United States, and mining machine manufacturer EBON also submitted a draft IPO prospectus to the Hong Kong Stock Exchange (HEXEX).
You can connect your own mining machine to the world's most profitable mining pool, or earn profits by purchasing Bitcoin cloud computing power contracts.
The mining industry is also supporting the improvement of the international technology roadmap for semiconductors by introducing machines designed with 7 nm (nanometer) nodes. In 2017, the production of 256 Mbit using 7nm process began in Taiwan.
SRAM Semiconductors. Chinese mining machine manufacturers have released new mining machines using next-generation 7nm semiconductors. Bitmain released more than five different models of mining machines in 2019, with 7nm chipsets from Taiwan Semiconductor Manufacturing Company (TSMC). According to local Chinese reports, Bitmain recently ordered 30,000 7nm semiconductors.
7nm semiconductors play a big role in SHA-256 mining
Taiwan Semiconductor Foundry has reportedly expanded its 7nm semiconductor production capacity due to large orders from IT companies such as Bitmain. According to 2019 equipment specifications, the hashrate of SHA-256 miners using 7nm technology is between 30-70+TH/s. If mining continues to gain momentum and there is enough demand to improve the mining process and technology, we will see more and faster machines in the coming years. For example, Taiwan Semiconductor has announced an ongoing 6nm (N6) process that is scheduled to go into risk production in the first quarter of 2020.
At present, SHA-256 mining is still a lucrative industry. Since the birth of Butterfly Labs, Cointerra and Hashfast, the ecosystem has matured. People like Artforz who have a lot of computing power are gradually becoming a thing of the past, and news about large mining pools competing to increase computing power is no longer uncommon. But what is certain is that mining will continue to develop at an astonishing pace, and even the largest mining pools must always be vigilant and keep up with the development of the industry.

In 2019, despite the large price fluctuations of Bitcoin, Bitcoin mining is still an area worthy of attention. Some large mining farms have successfully reduced operating costs and improved profitability through large-scale operations and technological innovation. For example, some mining farms have introduced more efficient mining equipment and cooling systems to improve energy efficiency. In addition, with the continuous advancement of technology, emerging models such as cloud mining have gradually emerged, lowering the threshold for ordinary users to participate in Bitcoin mining.