Are you wondering why mine Bitcoin in 2022?
Is it even possible and profitable?
Since the inception of Bitcoin in 2009, mining is a profitable business.
Sometimes, it takes time to see the results, but history shows us that most profitable miners mine during all markets(when prices are down and when prices are up).
Why you should mine crypto and Bitcoin when markets are down?
It’s easy to mine when prices are going up and mining looks super profitable.
In fact, why anyone wouldn’t mine when there are huge gains to be harvested?
The problem is, if you get into mining when markets are trending, it can be rather hard.
As it turns out, the best way to start mining is during the low prices.
When the morale of miners is low, some of them give up.
And when they give up, they sell their equipment.
When something is available for sale, the price of it will usually go down.
And that’s the best way to start your own mining operation.
Furthermore, when fewer people mine Bitcoin, the mining difficulty goes down, meaning you earn more Bitcoin with the same hardware.
It may sound counter-intuitive, and that’s why it’s so hard for many people to grasp the concept.
It seems easy to mine when everyone else is mining as well. But can be hard to find the equipment, and even if you do, you won’t make as much since everyone else is doing the same.
It seems hard to mine when prices are down. But it’s actually easier because there’s a plethora of hardware for sale, and you make more(in crypto) than you would in bull markets.
It’s a fact, starting to mine during bear markets is easier and more profitable than starting to mine in bull markets.
But there’s a catch. Since prices are down during the bear market, you will often need to wait for markets to turn bullish in order to see the full profit potential.
So ideally, you should mine in both bear and bull markets, but sell your mining earnings only in bull markets.
How’s the crypto market standing in 2022?
After the dark 2019 and the beginning of 2020, we saw amazing crypto gains that started in the summer of 2020.
It blasted in 2021 and then corrected a bit in the second half of 2021.
Three months have passed since Bitcoin was on the $47k level.
After the run around New Year’s Eve, the price of Bitcoin(and most cryptos that naturally follow it) was on a decline.
But starting in mid-March of 2022, we see a strong move to the upside, which pushed Bitcoin back to a $47k level again.
It’s a nice price for mining, but if we take a look at the whole picture, we can see that Bitcoin’s price in October and November of 2021 went as high as $67k.
So right now, the crypto markets are showing a strong upside potential. But that potential has to be concretized yet.
In other words, we’re somewhere in the middle, and the price and sentiment can go either way from here.
But remember the bolded sentence at the beginning of this writing:
History shows that miners did best when mining in all types of markets, and simply selling at the right times.
If you need to pay expenses(electricity, space rent, etc), you can sell a portion of your mining earnings often.
But for the best results and highest gains, you should preserve as much of your crypto holdings, and only sell when markets are up.
To help with this, you can withdraw your cryptos to exchange, but without selling them.
Then you can set up a stop-loss order, that will sell your cryptos if markets crash, and buy it again from that money at lower prices.
So, should we mine Bitcoin and other cryptocurrencies in 2022?
Do you believe in cryptocurrencies?
If not, then you shouldn’t mine cryptocurrencies in 2022.
It’s that simple, you should never involve in something you don’t believe in.
However, if you do believe in cryptocurrencies, then the answer is yes.
Days of complicated mining procedures and console software are long gone.
Of course, you can still mine with console miners, but you don’t have to if you aren’t tech-savvy.
So it boils down to your beliefs and perspective.
If you are into cryptos and believe in their long-term potential, then mining Bitcoin and other cryptocurrencies are definitely worth considering.
No one can guarantee you a profit, but if we take a look at the history of Bitcoin mining since 2009, it seems rather lucrative.