Reference no: EM133048580

The cost of mining Bitcoin is determined by many factors. Two big factors are how many miners (or efficient miners) there are and the market price of electricity in order to run the machines. If the price of Bitcoin exceeds the price to mine, it is worth the process. When Bitcoin first came out, someone with a reasonable computer and a good Internet connection could mine; however, it is not feasible for the average person. Industrial grade mining machines and software are being run in areas where electricity is less expensive. About every 10 minutes, new Bitcoin is possibly awarded to the person who's mining machine has discovered a new block. As of right now, that reward is 6.25 BTC. That is currently 368,750.00 USD. Also, because the transaction records are kept on the mining devices, the transactions fees are paid out to the miners. Daily cost of mining is around $4,000 to $8,500 depending on your region. The current price of 1 BTC is about $59,000. So, it is worth mining as long as one can afford the cost of operations and new installation. Because of its value, organizations that can create industrial size mining facilities with the latest software and who have access to inexpensive electricity have the greatest potential of making a profit. There is a future for Bitcoin because of cryptocurrency international abilities. With renewable energy sources increasing, there may be more environmentally sound ways to run these machines; however, the same things could also bring it down. With energy issues and pollution, governments may pull back on these organizations or charge higher usage fees.

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