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Is Bitcoin mining worth it?

Mining bitcoins is a tricky business, just like investing on crude oils fields. Basically there are at least 4 major factors to be considered:

  1. Cheap and stable electricity: You have to find place to have competitively cheap electricity to allow you to compete with other miners. Also, the electricity supply has to be stable otherwise you would lose opportunity cost of mining income. (yes, mining machine is not cheap, taking account the big initial investment) And please do think about the huge watts of each machine (each machine consumes same amount of the power as an air-condition, and you might need a lot fo them.)

  2. Low temperature and clean environments. Mining generates a lot of heat and the machines need to operate normally between some where 50 to 90 F. The hotter the temperature the lower the efficient of the machines. Heat and dust will shorten the life of these machines.

  3. Challenges from new tech: New foundry tech makes new machines more powerful and efficient than old machines. Therefore your initial investment is always decaying.

  4. Management cost, you need to find reliable place and management team to keep these machines on daily basis, 24/7. This might cost you some money.

There are other things to be considered if you are seriously going to this business. Otherwise, buying bitcoins from a crypto exchange is much easier option.

Binance would be a good choice to start with.

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