Analysis and Opinion

The Curious Case of Squeezed Mining Margins

Lately, many young students have started mining cryptocurrencies, in order to gain some quick margins. While the rates were substantially higher at the beginning, things have slowed down to a considerable extent after the intrusion of the regulatory measures. That said, lower mining costs have started discouraging the in-house and freelance miners and we, at OurPlatforms have conducted extensive researches and analysis for delving deeper into the associated reasons.
Firstly, Cryptomining requires exceptional levels of computing prowess and majority of college students are always on the run for availing high-end GPUs for keeping up with the requirements. Be it the availability of the heat sinks or a cooler climatic condition, there are many facets that need to be taken care of. Moreover, the coin prices have hit an all-time low which also doesn’t offer a lot of margin to the existing miners. It must be noted that each and every student invested a lot of money when it comes to buying the concerned Cryptomining setup. However, with the prices touching newer lows, it becomes hard for them to even get the invested costs back, let alone worrying about the profits.
There are a lot of students who tap into the power reserves at home and college campus for mining Bitcoin and other forms of cryptocurrency. While some organizations tag this as immoral tapping, some institutions have laid out some basic punishments for the same. Therefore, if the margins are on the lower side, even risk taking doesn’t seem like a very lucrative proposition. Cryptomining is a highly energy intensive process and it’s more like feeding a beast that isn’t actually bringing a lot of money to the concerned miner. However, we expect the miners to be persistent as the market still has a long way to go, in terms of profit making.

About the author

Ananda Banerjee

Ananda Banerjee writes about Bitcoins, Ethereum, Ripple and other popular cryptocurrencies by conducting extensive researches on the concerned topics. He has a lot of experience when it comes to dealing with new Initial Coin Offerings and other exponents of Blockchain technology as he looks to delve into the nooks and crannies of the concepts. Ananda understands the basics of decentralized technology and looks to analyze the ICOs from a technical point of view. He is actively involved in live Bitcoin analysis and other types of assessments involving cryptomining. His association with OurPlatforms is primarily focused on unbiased reviews and technical solutions. Last but not the least, he was also a member of the esteemed Dainik Jagran team and has a lot to offer, in terms of an editorial point-of-view.

You can contact him at +919696562450