Is Bitcoin Mining Worth It in Singapore? Or Choose Cloud Mining Instead?

Bitcoin constantly appears in headlines and rocks the world. No doubt, Bitcoin is a good investment. I remember someone once estimated that Bitcoin could be worth more than $17,000 by 2025. Well, if you haven’t started in investing Bitcoin, don’t worry as it is still the beginning. Other than buying low and selling high, what other opportunities you can make money from Bitcoin? What about Bitcoin mining? If you are wondering if Bitcoin mining worth it in Singapore, read on and find out why you should opt for Bitcoin cloud mining instead.

Is Bitcoin Mining Worth It in Singapore Or Choose Cloud Mining Instead


What is Bitcoin Mining?

To start at the beginning, let’s look at why mining exists in the first place.

Bitcoin mining is the process of verifying and adding transaction records to the public ledger (the blockchain). The public ledge is called the blockchain because it really consists of a chain of blocks.

When you make a Bitcoin transaction of 1 BTC to someone, you would have to broadcast to the world that you are making this transaction. Now that everybody knows that you are sending 1 BTC, what is stopping you from sending that same 1 BTC to person A, B, C, and, others.

In order to mitigate that, this where mining comes in. Bitcoin mining is deliberately made to be difficult via the ‘proof of work‘, where a complex mathematical problem needs to be solved in order to add a block (which contains that transaction) into the blockchain.

Only transactions that are added to the blockchain are considered final, that everybody can trust that you are not double spending your Bitcoin. As a consumer, all you should care about is that the deeper buried within the chain the block that contains your transaction, the harder it is for an adversary miner/spender to reverse that transaction.

The process of adding a block in a blockchain is done by many computers, also known as miners. These miners solve the Cryptographic algorithm and in rewards gets the bitcoin so new bitcoins is created every at every block.

Mining is a highly resource intensive process, hence miners will need to bulk up high computational devices (ie. graphics card, ASIC chip) and also the need to consume a vast amount of electricity to do the ‘proof of work’.
To compensate that, miners are rewarded with 25 Bitcoin (as of this writing) which becomes part of the new money creation process (towards reaching the 21 million Bitcoin total supply) for their effort and cost of verifying transactions.

Only 21 million Bitcoin are going to be created and 16 million Bitcoin are created at the time of writing. 12.5 Bitcoin are mined every time a new block is added and that number half at every four years i.e. around july 2020 only 6.25 bitcoin will be generated at every added new block. With the short supply if the demand increases(i.e. more people want to buy bitcoin) than it would simply increase the price of the Bitcoin.

Is Bitcoin Mining Worth It in Singapore?

Bitcoin mining was totally worth it, not only in Singapore but around the globe. However, solo mining is not possible due to two main reasons – electricity and profitability.

Mining requires many hardware tools which are very expensive. Along with the hardware, you also require cheap 24×7 electricity, high-speed Internet and other factors which are not possible in Singapore.

The household electricity tariff in Singapore is 0.21 cents (0.15 cents in USD) per kWh. Other than acquiring the large electricity to run the machines, large amount of heat is generated while running these servers. They have to be running 24 hours, hence you need to have airconditioning to keep them cool and running smooth.

With the electricity tariff in most countries (particularly in Singapore), it will not allow you to make any profit from mining. Bitcoin mining is only truly profitable when the electricity is free (Like from the Chinese Government or your college).

As time goes by, the business of Bitcoin mining experienced a fundamental shift between when GPUs / FPGAs were the norm and the rise of ASICs bitcoin mining hardware.  These ASICs completely changed the game by increasing the efficiency of mining bitcoins by many orders of magnitude and completely destroyed the profitability of mining with a traditional computer. They are at least 100x better at mining bitcoin than even the best GPUs. It hasn’t been profitable to mine bitcoin with GPUs since 2013. Mining bitcoin with a GPU is like trying mine gold with a spoon.

In early 2013, Jeff Garzik received the first Bitcoin mining ASIC, produced by Avalon ASIC (Application Specific Integrated Circuits). At that time, he received 15 BTC after 20 hours of mining.

Today, one would be lucky to get 0.0007 BTC per day with the same hash rate he had and the fact that it used over 600 watts of electricity power.

CoinWarz offers a good mining profitability calculator, which automatically fills in the current BTC price, difficulty and block reward info. Enter specs and cost, as well as other information such as power cost and pool fees to find your profitability. Today, Bitcoin mining is extremely competitive and not worth investing.

So Despite being profitable, I tend to stay away from mining because the initial investment is high. And it requires a large quantity of continuous electric supply (This is a large part of the investment). And it is a very competitive space.

Therefore, cloud mining is always a smart option for gaining Bitcoin steadily over time.

Why Is Cloud Mining More Profitable?

A seemingly sophisticated way to allow people to jump on the Bitcoin mining bus without the need of costly expenses. With cloud mining, you can rent mining equipment from a company that will give you back the profits from your rented mining rigs.

Cloud mining is a magical solution to solve your Bitcoin mining problems. No need to buy expensive hardware, find storage space, pay electricity bills or take care of cooling. All you need to do is “chip in” with a larger company on their mining expenses and in return, you will get a portion of the earnings.

Which Is The Most Recommended Cloud Mining Company?

As you look around, you will notice that most of the cloud mining companies are complete high-yield investment programs that run on Ponzi scheme.

Yes, they aim to steal.

This is one of the reasons why this website was formed – to create public awareness and keep people’s hard-earned money from being stolen.

When it comes to cloud mining, I only trust one company – Genesis Mining.

What Is Genesis Mining Read This Review Before You Invest

Cloud mining companies like Genesis Mining enables users to purchase mining capacity that of hardware in data centers, one of them is in Iceland. That means the rigs you rent consume very cheap electricity and are cooled efficiently.

Genesis Mining is a well-established X11, Ethereum,and Bitcoin cloud mining provider and they have been in the cryptocurrency mining industry since 2013. No matter which package you choose, you are renting the latest technology, which guarantees profitability for as long as possible.

When you deal with cloud mining you rent out GH/s or TH/s, which measure how much computing power you will be able to mine with. In order to see if a mining contract is worth your money, you basically need to calculate how much money you will make from the money you invest. Just like any other investment, you want to check your ROI.

There is just one risk when it comes to cloud mining, we have no idea what the Bitcoin exchange rate will be in five months or a year from now, nor what the mining difficulty will be. This is what makes cloud mining a bit risky. if Bitcoin booms again, we can cover our whole investment in just one month, but if it goes the other way around, you might lose your money. However, it is unlikely that Bitcoin is going to disappear because it is literally unstoppable.

The notion of unstoppable computer systems should be familiar already. BitTorrent, the file-sharing protocol invented by Bram Cohen, has been around since 2001 and is still very much alive despite concerted, international, billion-dollar efforts to destroy it. The latest Star Wars movie can still, right now, be pulled through BitTorrent in minutes straight to your laptop.

Is It Still a Good Time to Invest in Bitcoin?

As you can see from the Bitcoin exchange graph that the value of Bitcoins was initially highly volatile during the first few years of its inception, however during the last 6 months the currency has stabilized and has been steadily increasing in value on a daily basis.

If you are worried that you missed the Bitcoin Boat—and if you can take a long-term view—then stop worrying. The ‘right time’ to buy Bitcoin is whenever the cost is less than $10,000.

I think there’s always a mental barrier with people getting involved with bitcoin, hence many think about but a year down the line the same question pops into their mind.

Actually, Bitcoin appeared exactly at the time where it is needed the most. We are nearing the end of current financial world order. Countries engage in currency wars – and in this war, there are no winners, just losers. Central banks of most nations will probably print even more fiat currency and thus transfer wealth from poor to the reach (the global elites). This is only possible because the poor are trapped – they use the fiat currency as a store of value – and this will collapse.

But with Bitcoin – anyone can escape this trap! Buying Bitcoin is a lot easier than buying and holding physical gold. And it is certainly a lot more liquid.

How About Just Buying and Selling Bitcoin?

If I invest $10,000 in Bitcoin today, how much money will I have by 2030?

No one knows how much Bitcoin will worth 1 year or 5 years down the road. What I can do is give you a simple chart on how the money scales as Bitcoin reaches new market caps. If you invested $10,000 today, here is what the value of your investment at:

Market cap of $50 Billion: $17,550

Market cap of $100 Billion: $35,103

If the market grows, so will your investment.

How to Make More Money With Bitcoin Mining from Genesis Mining

http://www.coindesk.com/price/

If you are looking for a place to buy and sell Bitcoin, Coinbase is one of the world’s largest Bitcoin broker that you can trust.

Coinbase is backed by several large venture capital firms and claims to hold 617,000 consumer wallets, 16,000 merchants, as well as integration with U.S. banks.

Coinbase is often recommended to newcomers as one of the easiest ways to acquire their first bitcoins. Their extensive banking partnerships allow transactions to be made via EFT payment, ACH / SWIFT / SEPA transfer and, as a recent introduction, major credit cards and PayPal.

If you’re wary of leaving substantial sums of fiat or crypto on an exchange, Coinbase is probably one of the more secure options.

You can read more about Coinbase here.

Coinbase

 

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Is Bitcoin Mining Worth It in Singapore? Or Choose Cloud Mining Instead?
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Is Bitcoin Mining Worth It in Singapore? Or Choose Cloud Mining Instead?
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If you are wondering if Bitcoin mining worth it in Singapore, read on and find out why you should opt for Bitcoin cloud mining instead.
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