By halving the revenues generated by mining operations, the historic event should eliminate the miners, who are deemed unable to bear the new operating cost. However, the new record mining difficulty suggests that investments in high-end mining equipment have only increased since the event by half.
Bitcoin is the first cryptocurrency in the world and the most important today in terms of market capitalization, followed by Ethereum and XRP. The number of bitcoins currently existing stands at 18 million, the ceiling (whose role is to simulate scarcity) should be reached at some point in the first half of the next century.
When cryptocurrency was in its infancy, bitcoin mining was relatively easy, so that an individual with a powerful computer could successfully generate profits. In other words, the value of the cryptocurrency reward was greater than the cost of electricity spent (and any other overhead).
Today, the difficulty of bitcoin mining has forced individual miners on the market (despite the high value of a single coin) and the scene is dominated by mining unions, which see participants pooling IT resources in exchange part of the group’s cryptocurrency revenue.
These bitcoin mining consortia are known to take important steps to improve profit margins, including establishing tailor-made agreements with electricity providers that guarantee cheaper energy in exchange for a commitment over a predefined period.
Although it is almost impossible for an individual user to turn bitcoin into for-profit mining today, mining unions offer an alternative route for enthusiasts.
However, it is important to understand that due to the variation in the difficulty of mining and the fluctuation in the value of bitcoin, participation in a mining operation is a speculative pursuit and does not guarantee an income.