In an SEC filing last Feb. 08, Elon Musk’s Tesla stated investing $1.5 billion in bitcoins, in line with the company’s future plans of accepting BTC payments. Naturally, Tesla’s move had further boosted bitcoin’s price, bringing it to a record high of $46,800. This new development has sparked greater interest in bitcoin mining, being a more affordable approach to increasing one’s crypto assets. However, those new to bitcoin are unaware that such development is also expected to further increase difficulty in mining the world’s most popular cryptocurrency.
While learning to mine bitcoins may be easy, there is more to understand about cryptocurrency mining since the industry has grown more complex in all aspects. Given that there are now ASICS bitcoin machines powerful enough to carry out 1012 conjectures per second in solving a block of bitcoin hashes, the machine will be working amidst a greater level of mining difficulty.
Increased Participation in Bitcoin Activities Impact Mining Difficulty
First off, one should understand that mining difficulty indicates a measure of toil and struggle that miners face when looking for blocks that can earn them a unit of bitcoin as reward. The current bitcoin mining difficulty currently stands at an estimated 20,823,531,150,111 or 20.82T. A high difficulty measure denotes that it is taking bitcoin miners to find and subsequently solve a block of hashes related to a particular bitcoin in circulation.
That being the case, one’s bitcoin mining activities will use a greater amount of electricity, which equates to higher costs; not unless mining is being done in a hydro-powered location where the cost of electricity is relatively lower.
The point is, the greater the difficulty, the lesser the chances of earning a reward. Once related costs are taken into consideration. the lower the profitability of a bitcoin mining business. Besides, ASICS bitcoin mining machines have become more expensive due to increased demand that cannot be met with an immediate supply.
Now there’s another option, called Mining-as-a-Service or MaaS being offered as an alternative approach to bitcoin mining. This option gives smaller scale bitcoin mining operators a chance to grow their business, by having one or more ASICS bitcoin miners at their disposal in exchange for a fee.
A Quick Look at Mining-as-a-Service (MaaS) of the ElevateGroup
The Elevate Group had foreseen that as bitcoin mining becomes more difficult, the small scale bitcoin miners will have fewer opportunities to participate in the cryptocurrency industry’s mining sector. As opposed to cloud mining platforms, the Elevate Group offers customers their pool of bitcoin miners. That way, customers can build their own mining team without having to worry about electrical costs, thermal-controlled environments and equipment maintenance.
According to this MaaS provider, their contract is finite since the duration will be tied to the life of the bitcoin miner (mining machine) working for the customers. The Elevate Group in turn, earns from MaaS contracts by collecting a 20% share of profits earned by each customer.