Horrendous graphics card costs and an ever-increasing demand show that cryptomining is still far from becoming uninteresting in 2021. But investing in coins is not only possible by means of mining. Accordingly, our eToro experiences show that social trading in particular is becoming increasingly important. But how does it look for those who have invested in graphics cards and placed their own mining rag in the basement? Is it still worthwhile in Germany to go mining with any amount of horrendous computing power?
Without computing power, no cryptocurrencies
With China banning bitcoin mining, the focus seems to be on the US. The fact is that without the computing power provided by ambitious users, cryptos would not exist. As Bitcoin became more relevant, there was a real gold-rush atmosphere in the country. Private computers were upgraded and retooled to mine more and more Bitcoins. It was an investment that paid off for newcomers. But what about today, when bitcoin is already worth over $50,000 and more than 3/4 of all existing bitcoins have already been tapped?
What influence do the growing electricity prices of Germany have and what role do the immense hardware costs play? The classic home computer, which is now available in almost every second household, cannot be used for mining cryptocurrencies. The computing power is too weak. A mining rig must consist of at least six high-performance graphics cards, CPU and mainboard, and the current market prices make a new investment expensive. Isn’t it more worthwhile to leave mining to those who already have a rig at their disposal?
Mining hardly profitable in Germany
In fact, it is hardly profitable to invest in mining cryptocurrencies yourself in Germany. It is not only the high investment costs in graphics cards and co. that could pay off in successful prospecting. It is primarily the cost of electricity that makes mining superfluous in this country. Those who want to invest actually have not only more success with exchanges like eToro, but also more returns in the end!
A look at these statistics shows how strong the influence of the electricity price is. Germany not only has high electricity prices, but the highest prices ever! A top ranking that is no cause for celebration. Because a mining rig needs lots of energy, the costs are not covered by the success in mining. Thus, it is worthwhile to leave mining to those countries that can actually make profits due to low electricity prices.
Investments in mining equipment and electricity costs are less profitable than the targeted investment in cryptocurrencies, which do not necessarily have to be called Bitcoin. Bitcoin is already way up, the price fluctuations of the last few years have calmed down and the forecast is for growth. However, new currencies keep appearing, are still cheap to buy and, if successful, can lead to profitable profits one day.
Investment in mining also possible without own station
Whoever feels the desire to continue to invest in mining despite all adversities, also has the opportunity to do so from Germany. However, not with their own rig, which is operated in this country with horrendous electricity costs, but by investing in appropriate companies. Companies have been established that buy hardware and then install it abroad to mine cryptocurrencies at low electricity prices. The big advantage here is that the benefits of foreign countries can also be used from Germany.
However, it must also be said in fairness that not all offers sound really serious. Without the corresponding expertise, it is not worthwhile to use a supposedly good offer to indirectly mine cryptocurrencies yourself abroad. What is problematic is that there is no legal recourse available. For one thing, cryptocurrencies are not official money, and for another, companies offering these services are almost always based abroad.
More security through direct investment in cryptocurrencies
Even though there may be ambitious gold miners in the Germans, mining is not profitable in this country and passing the job on abroad is often dangerous. Significantly more security is offered by direct investments in cryptocurrencies, which can lead to profits in the long term. To mine yourself, it is not enough to invest money in graphics cards and set up an account on a mining server. If you want to get serious about the topic, you need in-depth knowledge about profitability, strategy and optimal hardware. Knowledge that even cryptocurrency professionals often lack.
Even if the electricity prices were to drop rapidly, which is not to be expected in Germany based on forecasts, the success of mining would not necessarily be given. Particularly in the Bitcoin network, the difficulty keeps increasing. The reason for this is the growing number of miners, not only from the USA, but also from countries such as Argentina, Japan and Canada. In addition, the reward per block in Bitcoin is halved once every 210,000 blocks. Thus, it is not foreseeable whether the development of a block, minus all investment costs, will pay off at all in the end at the current exchange rate of Bitcoin to fiat. The investment by purchase is clearly the better solution for Germans.