Mining is a buzzword in the crypto space. It is a process that can generate huge profits. But whether crypto mining is profitable in India or not, is still a question for many.
Therefore, to help you find this out, in this article, we’ll discuss the profitability of crypto mining in India.
The Role of Cryptocurrency Mining
Cryptocurrency mining is a decentralized process wherein new coins are generated as a reward for processing transactions on the public ledger network of Blockchain. The process of mining requires a lot of computing power and electricity. It works on the protocol of Proof of Work. The Proof of Work algorithm is what keeps crypto coins in circulation.
When considering the mining profitability, it is dependent on various factors including
- mining difficulty
- heat generated
- cost of electricity
- Cost of internet access
- Components involved in producing hashing power.
Moreover, the crypto mining power is dependent on hashing rate and hashing rate relies on your computer hardware. The Hashrate is a measure of a miner’s computational power. The higher is the computational power the more crypto coins you will be able to generate.
Mining Tools and the State Of ASICs
Mining cryptocurrency is not that easy. It involves a lot of variables and its profitability boils down to having the right set up. For mining there are three types of hardware in the market:
CPU- CPU is considered less suitable for mining because it has a low hash rate.
GPU- GPU is a comparatively good option but now it has become less efficient. This is because one transaction involves generating one trillion hashes per second and to process this transaction GPU needs significant time and electricity.
ASIC (Application-specific integrated circuit) – ASIC is special mining equipment capable of generating a higher hash rate. It is a next-level development after CPU and GPU. ASIC can solve complex cryptocurrency blocks and can generate a hash rate of more than 1Th/s. Therefore, ASIC is deemed more suitable for crypto mining.
To sum up, mining cryptocurrency using CPU or GPU hardware in the computer is not profitable. The time of using these hardware has gone. Additionally, using more advanced ASIC hardware may cost you higher. Although it may help you earn money easily by joining pools like antpool or slushpool. Another benefit of ASIC hardware is that it enables you to mine multiple coins regardless of their price.
Well, if you want to bring down some expenses, an alternative set up of six GPUs integrated into one PC can deliver the simultaneous hash rate pool, thereby, offering scalable mining performance.
Hence, anyone looking to get involved in mining should have access to a scalable setup that can offer a good choice between different cryptocurrencies. However, mining has been executed in India but has not been very successful. The reasons being complex infrastructure, higher electricity cost, and unfavorable weather conditions in India. This gives the conclusion that mining is not profitable in India.