Bitcoin is a great investment if you are looking to expand your financial portfolio. Money can always be made from it, but with anything, profit is never guaranteed. If you want to know why Bitcoin is profitable in 2022, or if you want to see if it could be a good investment for you, then read this informative guide.
Investing in Bitcoin In 2022
Interest in Bitcoin has surged since 2015. Bitcoin saw its total value rise from around $300 to $20,000 during its peak in 2017. In October 2021, it rose to new heights, recording a huge increase that shot the value up to $67,000 per coin. While buying on an exchange is simple, there are those out there who prefer to mine instead. The best option for you will depend on your individual circumstances.
The Profitability of Mining
Mining cryptocurrency might seem like a no-brainer. You simply need to set up a computer that will help you to solve complex mathematical problems. Upon mining successfully, you will be given a fraction of a coin. The very first Bitcoin miners were able to mine based on the computing power available within their home. Now serious miners have built vast systems to help them mine, this makes it much more difficult for those with smaller computing power to compete. The average cost of a Bitcoin rig currently stands at $10,000, excluding power.
Cloud Mining
This form of mining involves the use of someone else’s rig. Companies that include Genesis Mining or Hashflare will charge you based on the hash rate, or processing power. If you pay for a higher rate, you will receive more coins. Sometimes you’ll be asked to sign a year-long contract. If the value of crypto drops, you may be stuck in a contract that is unprofitable.
The Long View
Investing in an expensive rig and then spending a small fortune on electricity every month might not be very worthwhile. Buying Bitcoin right now, hoping that the value is going to go up is also risky, but at the same time, you have to remember that even the most secure investments come with some element of risk. The best way for you to decide if it is worth it or not would be for you to look at the potential payoff. Bitcoin has shown time and time again that it can and does bounce back. When it bounces back, it soars to new heights, proving that it is an invaluable way to build wealth.
This is especially the case if you invest in the companies that mine Bitcoin, including Mawson. By investing in the companies that do the work, you can be part of a thriving sector that is showing huge amounts of promise. You can also be indirectly involved with the sector, cutting down on your risk while exposing new levels of reward. All in all, it’s safe to say that Bitcoin is paving the way for the future and that there are certainly exciting times ahead.
