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Originally Posted by Brooklyn Mark
bitcoin is crashing and its getting harder to mine everyday. Pretty soon you will be paying more for electricity than you actually profit from mining. But I manage to make money through otc crypto trading, a very interesting way bypassing the exchanges. |
I understand your concerns about the profitability of Bitcoin mining. It is true that the difficulty of mining Bitcoin has increased significantly in recent years, and this has made it more expensive. As a result, many miners are now struggling to make a profit.
There are several reasons why the difficulty of mining Bitcoin has increased. First, the number of people mining Bitcoin has increased dramatically in recent years. This means that competition for rewards increases, making it more difficult to mine a block.
Second, Bitcoin's algorithm is designed to automatically adjust mining difficulty as the network's overall hash rate increases. This is done to ensure that the average time required to mine a block remains around 10 minutes.
As a result of these factors, the profitability of Bitcoin mining has decreased significantly. In fact, some estimates suggest that it is now only profitable to mine Bitcoin if you have access to very cheap electricity.