Bitcoin Mining Sets Record Revenue at Meagre Profit

The present value of Bitcoin might be 40% higher than its price last year, but that is just about it, profits in mining operations of small-scale Bitcoin miners have hardly changed, according to recent research by Diar.
While revenues have shot up to correspond with the change in price, with Bitcoin miners setting a record of $4.7 billion in revenues this year, the issue of profitability has proved to be more complex due to a number of factors. Chiefly among the issues behind the drag-down is the increase in the number of competition, and likewise computing power. These factors make it harder for smaller mining operations to record huge profits as costs keep building, while larger mining operations are placed in a pole position to loom over any competition.

Small-scale Miners at Loss

Despite the total revenue for the first six months of this year alone, already outperforming the whole of 2017, profitability is yet to increase for Bitcoin miners. As a matter of fact, an inexperienced miner might find himself running into the red much sooner than expected, with a large variety of costs including equipment, salaries, rents, overheads, etc. set to swallow up the best of income.
Diar reports the only country reasonably economical for small-scale miners would be China with an average cost of about $0.08/kWH. Even then, it does not come cheap, with many of them scouting for ways to circumvent this. Just recently, a Chinese miner was sentenced to three and a half years in prison for the illegal use of railroad energy to mine Bitcoins.
All the more reason big-scale miners with large mining pools such as Bitmain are in favor. As the situation continues to escalate, companies like Bitmain would only tend to be the profiting survival in a choking and tight industry. Bitmain, one of the largest suppliers of Bitcoin miners in the world, lately released data supporting its claim to be more dependent on sales of its Antminer ASIC mining devices than its other operations, with a whopping 95 percent of its H1 2018 revenues were generated from sales of miners alone.
Bitmain’s mining strategy might see the company become a swing producer, in the long run, with a large part of bitcoin blockchain’s hashrate eventually under its control.

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