Bitcoin Mining Difficulty

Amidst Increasing Mining Difficulty: Mining-as-a-Service Can Help

Many are now considering mining-as-a-service as a better alternative to investing in costly hardware to pursue plans of joining the bitcoin mining bandwagon.

The bitcoin market has recently been yielding price levels running between between $44K and $46K. A single unit of bitcoin earned as a reward therefore already equates to such price values, which after deducting all related costs could still bring a reasonable return on one’s investment. That is, if projections are based on high hash rates, a condition denoting that a miner can quickly complete a block and present proof-of-work with very little electrical costs involved.

The reality however is that the number of people who are trading bitcoins has increased, in addition to those who have been regularly using bitcoins for their transactions. Growth, especially if phenomenal, has huge impact on the difficulty of mining for BTCs amidst a highly competitive environment. Even if an ASICS mining machine runs the calculations when searching for a block hash, the machine has to perform a massive number of guesses. sometimes replacing numbers thousands of times in order to solve and complete a block of hashes related to a particular block header.

Although there is no limit to the number of guesses made to solve a block hash, the fewer guesses made the more profitable for the miner. That being the case, one’s bitcoin mining machine could run up electricity costs before a miner earns a bitcoin reward, costs that are likely to erode profits projected under normal, less difficult circumstances.

How Can Mining as-a-Service Help Make Mining for Bitcoin More Profitable

The best way to find out whether mining-as-a-service or MaaS is the better alternative, is to try out the platform so you’ll be able to compare if you will be spending less on costs whilst earning rewards at the present difficulty level. In using this type of service, you will have the option to utilize as many bitcoin machines as you want if you’re already a professional bitcoin miner. Startup bitcoin miners though will be limited to one bitcoin machine, until they get to attain that level of mining skills commensurate to a professional miner.

Nonetheless, the main benefit of using MaaS when venturing into the business of bitcoin mining is that you will be using mining machines that run in a thermally controlled environment whilst using low-cost electricity. The provider of a MaaS platform will in turn collect a certain percentage from whatever profits earned by a customer, after the cost of electricity is deducted.

The Elevate Group for one charges a fixed rate of 20% as share of the profit. That is after deducting the costs of electricity used by the bitcoin machine/s included in the Equipment Management Agreement. Additionally, there is a 1% fee collected to cover for the cost and maintenance of the company’s dashboard wallet. To learn more about Elevate Group’s MaaS platform, check out the company’s website, as it furnishes tutorial videos and a page dedicated for FAQs about bitcoin mining.

Posted by Madelina Feliks in Cryptocurrency