After hitting a record $40,000 on January 9, Bitcoin lost about 20% of its value. And this may only be the beginning of the correction! A deep decline in the price of BTC is possible within a few weeks. But is this bad news? No. Is this a reason to stop mining bitcoin? No, this is a reason to start!
The bitcoin rate showed a sharp decline. Perhaps this is just the beginning of the fall. But corrections are a natural part of any growth. Traders use them to increase their equity stake. During the previous growth phases, there have been numerous falls of 30-40%. However, they were quickly bought out by investors.
Therefore, miners should not be afraid of this correction. It is just another stage in the growth of bitcoin.
In General, Two Main Components Influence the Profitability of Mining:
The first is the complexity of the network. It is quite volatile. When new hardware comes out, the hash rate rises. After that, profitability falls, and miners turn off old equipment. The hash rate drops, and the profitability increases again!
Looking at the market it seems that the major global hardware vendors have not purchased many chips. Most likely, the new equipment will be released no sooner than in spring-summer 2022. Therefore, in 2021 the network hash rate is not expected to grow much, and mining profitability will be good. And the next year one will be highly dependent on new equipment release.
The second component is the cost of bitcoin. The market is tired of all time highs, and most likely, we will see a correction that will cheer up investors. The demand for the leading cryptocurrency has not been falling for a long time. After the correction, bitcoin will most probably continue to grow. Nobody knows the exact numbers, but there will definitely be growth and high profitability.
In 2021 investors should focus on mining contract duration. If you buy a long-term contract, you earn both during the drawdown and the growth. You make profit during each phase of the cycle.
Short-term contracts are not very interesting today. After all, if the complexity of mining now increases and the cost of bitcoin falls, then investors will not have enough time to earn anything.
When you just buy bitcoin, you carry significant risks. And a mining contract, especially a long-term one, will regularly generate income, and in total, it is more profitable. Mining levels the volatility of the leading cryptocurrency. In average, miners earn more than investors. Therefore, the cloud mining provider ECOS is happy to help each reader make money on bitcoin’s next growth!
ECOS is a legal mining platform, operating since 2018, located in the Free Economic Zone of Hrazdan, Armenia. Thanks to this, its activities are not taxed. And the current agreement with Hrazdan heat and power station on the supply of up to 200 MW of electricity makes it possible to mine bitcoins even more efficiently.
You can select and purchase any Bitcoin mining contract (long-term one recommended) at a special price after registering on the platform and enjoy high profitability!