Cryptocurrencies and all the notions that surround it like blockchain technology and mining are now largely a part of the mainstream media. Thanks to the success of bitcoin as their most valuable example, digital currencies are present in the collective consciousness of most modern people. As such, more and more of them are looking to invest in a number of virtual currencies and make some passive income on the side.
However, in every bitcoin discussion, it is crucial to mention how unpredictable the market is, mostly due to how highly volatile the spikes in worth can get. On top of that, the current year of 2024 has brought a new deal of troubles in most branches of industries. All countries and their respective economies have been hit hard, and we as a civilization have yet to start recovering.
The cryptocurrency world has also been hit but it has also managed to stay afloat remarkably well. Despite this, the most important lineup of people involved has experienced certain challenges this year. The miners of bitcoin did not have favorable conditions, to begin with, especially individuals who mine on their own. The onslaught of the coronavirus has not been kind at all, resulting in unfavorable circumstances for most of those who make a living or a habit of mining bitcoin.
In this article, we are going to explore the biggest challenges that the bitcoin miners have been facing in 2024, and those that will remain until the end of the year. To find out more as well as to start investing in the field of bitcoin today, make sure to check out bitcoinupapp.com.
1. High Energy Costs
Obviously, the ever-persistent problem has only gotten worse this year. In order to be profitable with mining alone and make a living, one has to combine hundreds of specialized ASIC computers together and mine bitcoin. Only then can you think about breaking even at the end of the month and making money from bitcoin. However, even then you will be paying astronomically high energy bills every month. This is due to the high energy consumption of powerful computers needed if you mean to solve the complicated mathematical equations and problems that are at the heart of mining bitcoin.
According to a study carried out by CBS News, bitcoin mining consumes more energy on a yearly basis than 150 countries. There is not much an average person who mines at home with several rigs can do to limit this problem. This became even worse this year when numerous people lost their jobs and when many had to spend more time at home using up more electricity.
For those of you who may not be familiar with this quite modern and innovative term, here is a quick explanation. Cryptojacking is a form of hacking in which the perpetrators steal away other people’s computing power in order to mine bitcoin and other digital currencies. They do this by taking control of the computers the unsuspecting people use to mine for themselves. The result for the hacker is mining without the need to consume electricity, while the result for the poor innocent miner is an even higher electric bill.
In some cases, the mining rigs stopped working since they died due to over-usage. Tapping into someone else’s resources like this is often hard to notice and track. In 2017 alone, this form of theft rose by over 30% and it has been slowly rising ever since. In 2024, the year of many misfortunes and general struggle, such an attack could prove devastating for an average user. Remote mining on computers is achieved through different methods, mostly ransomware tactics. The most devastating news is that it is really hard to tackle the problem.
3. Authorities and Laws
The decentralized nature of cryptocurrencies and their blockchain technology is a direct threat to the traditional systems in which governments, banks, and other institutions introduce various laws in order to control the market. The fact there are no third parties with bitcoin make sit very appealing and encouraging to most investors and users. It is this part of digital currencies that makes the lack of legislation and information a problem.
Governments do not educate people enough and do not talk enough about mining, cryptos, and blockchain, while their legal obstacles and bans prevent this extraordinary technology from becoming even better and more dominant. Many countries outright banned mining, meaning people cannot do it at all just because their government is not willing to change and adapt. Right now, not much is going on towards a better crypto future and the only ones suffering under such regimes are first the miners, and then everyone else involved with crypto.
4. Stakes are Too High
Once everything comes together, the biggest obstacle, difficulty, challenge, or whatever you wish to call it is the uncertainty. The risks and stakes are simply too high for many, which is why they ultimately decide not to chase their initial plans and wishes in the field of digital currencies. 2024 worsened this and many believe that this is the year when the crypto world will be shaped, for better or for worse. Some predict bitcoin jumping to more than $100,000, the ultimate all-time high in worth.
This would bring more attention, more investors and businessmen, as well as more average people to the game. It would also give the governments a new dose of fright and concern. The future is both bright and uncertain. The fact that 1 BTC has managed to cement its worth between $11,000 and $13,000 for most of the year is an encouraging sign, as mining and investing have never looked more appealing. Combine the steady value with the seemingly close rise, and you get something worth your time, money, effort, and nerves.
Conclusion and Takeaways
Mining has always been challenging and uncertain, but never has it been more promising and dangerous at the same time than right now. The fact remains that you will be paying a lot for energy, be prone to cryptojacking, have trouble depending on where you live, and not be sure of any move you make. Despite this, if you ever thought about joining in, there is no time like the crazy present that 2024 keeps treating us.