How to Earn and Profit Using Cryptocurrency
How to Earn and Profit Using Cryptocurrency
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Introduction
In today’s article, we will talk about the most widespread business models regarding the mining of crypto.
Everyone who has a powerful computer could start mining and earn a profit just by running software.
Business Models for Mining Competitive
Mining At first there were a small number of participants in the market – mostly small entrepreneurs, but after crypto became more and more popular, competition has appeared.
Miners have been investing in super powerful hardware in order to be able to continue to earn a profit.
Everything seemed great and secure, but then came the crash, connected to the algorithm, market pressure on fees and all this decreased the miners’ profit.
The cost for electricity has become unbearable even in places where it is a rather cheap commodity like Iceland.
Subsidized Electricity Mining There are places in the world where there is a surplus of the produced electricity.
Some of it is exported to other locations, but at some point miners appeared and took advantage of this unusual situation.
So However, after some time it was no longer profitable for them either since the margins grew too thin.
And In other places even not so educated people are willing to try mining, knowing the possibilities of the industry and using cheap industrial electricity from factories.
Stealing Electricity If you manage to reduce the cost of electricity you will surely increase your profit.
Years ago some people used to mine in their dorms and in this were cutting expenses.
However, today such behavior is intolerable and seriously punished – in some cases the thieves have even gone to prison.
Another way of stealing is by mining, taking the profits, and then going out of business right away.
Companies have declared bankruptcy while owning huge amounts of electricity.
Mining at a Loss The last model we will discuss in today’s article is mining as a loss. Hear me out here.
It may not seem super-rational unless our main focus is to complete the transactions.
This is where the Darknet comes in. If it was not for crypto, the illegal transactions happening there would be much harder to execute.
Those individuals or organizations would go to the length of mining at a loss only to keep the technology going.
It is too valuable for them and it brings them much more profit through their contraband to just abandon.
This is encouraging for anyone who would like to participate in mining crypto – there is no way the prices will crash.
Criminals will make sure this never happens.
Escaping from Sanctions There was a case involving Iranian miners.
It involved 2 guys who purchased their equipment for mining when the USD in Iran was still strong and the electricity was cheap.
We thought that they would be able to earn around 100 dollars per month.
Forex prices and those of Bitcoin have dropped, but they were still making a profit.
The only way to register losses was for the Bitcoin to drop to 2K dollars.
As for North Korea – it could have made 200 million dollars if it was mining cryptocurrency in 2017.
That is Because of the established criminal networks there, it could have been easy to cash it for real currency and then use it for purchases in the country.
We could be sure that the mined coins are being used for currency or to maybe support the missile program of the country.
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