Mining for profit?
Bitcoin is the OG of public blockchain. For a public blockchain to work, it must allow free and fair participation. It must be incentivised. It must be THE single source of truth. After 4 years of following the blockchain space, I have stayed clear of the other 5540 cryptocurrencies last counted at the time of writing. Most of them are dormant projects, scam Initial Coin Offerings (ICOs) and ponzi schemes. You will need very specialized skills to navigate these deep waters.
I would not throw my weight around enterprise sponsored blockchain projects such as Hyperledger and Corda either. And don't confuse blockchain with the digitization of sovereign currencies such as China's DCEP, Japan's Jcoin and Singapore's Project Ubin. For without the 3 characteristic of a public blockchain mentioned above, these are nothing but glorified distributed database servers. In the contest to be the number 1 public blockchain for the world, Bitcoin is way ahead of the others. And by Bitcoin, i mean the scalable and set in stone Bitcoin, the Bitcoin Satoshi Vision (BSV), the OG.
In May 2020, BSV processed a largest block to date at 369MB in size and containing 1.3 million transactions on its main network. That's a speed of around 3600 transaction per second. The runner up Ethereum blockchain is currently processing about 7 transaction per second. I am in no way an expert in blockchain technology. But it is obvious to me that the technology is important if not transforming. Just look at how many huge enterprises and governments are investing in it. Blockchain is still in its nascent stage. If we pick and bet on the correct winner early, we could see a tremendous reward.
How can normal people like me participate in this upcoming great redistribution of wealth? I buy BSV. I mine BSV and I use BSV. I have covered how you can buy BSV in another article. More on how you can use BSV on the many new apps later. So how can we mine BSV for profit?
In order to mine BSV, you will need to purchase purpose built Application Specific Integrated Circuit (ASIC) machines directly. Companies such as Canaan (CAN Nasdaq Listed) and Bitmain sell these machines. However these would involve setting up the machines yourself and running it from your place. Given the power consumption and noise of these machines, this is not a very good idea. Another option is to purchase Cloud mining contract sold by some ASCI machines owner who are already running the machines. Companies such as HashNest and ViaBTC are doing that. I have a very bad experience with ViaBTC so I would not really recommend this company.
The third option would be to purchase the machines and have a company managed them for you. I am currently doing that via Mempool. I bought their WhatsMiner M20S-65T at USD1,716 per unit. That's 65Th/s of hash power. At the time of writing, the net return per month per unit is about USD38. Depending on the price of Bitcoin and the participation rate of other miners, the returns may fluctuate greatly in both direction.