Dec 01, · An often overlooked facet of mining profitability is the fees one pays to sell the Bitcoin one mines. If you are a small time miner, you may have to . Bitcoin Gold is extended by Lighting Network, which scales to route nearly limitless payments per second. This is an example of a "second layer" solution living atop the main blockchain. Second layers and side chains enable technologies like smart contracts which can run at blazing speeds, secured by the underlying BTG mainchain. Bitcoin Gold Mining Profitability Calculator If you are curious to see how profitable mining the Bitcoin Gold cryptocurrency can be for you, check out our mining calculator. It will give you profits estimated on the current difficulty of Bitcoin Gold, along with the BTG to USD price.
Profitability bitcoin goldShould You Buy Gold Or Bitcoin?
Below, we'll compare gold and bitcoin as safe haven options. There are several factors that make gold a strong safe-haven asset. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed. The precious metal used to be tied to the Dollar until when President Nixon severed the ties between U. Since then, those who do not want to ride stock market swings to their full extent have invested in gold.
Plus, as more people flee stocks and invest in gold, the price rises accordingly. Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. Market participants may remember in when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time. Like gold, there is a limited amount of bitcoin.
Satoshi Nakamoto, the pseudonymous creator of bitcoin, limited the total supply to 21 million tokens. Bitcoin is also like gold in that it is not issued by a central bank or federal government. As a decentralized cryptocurrency, bitcoin is generated by the collective computing power of "miners," individuals and pools of people working to verify transactions which take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins.
To ensure that the market isn't flooded, the Bitcoin protocol stipulates that these rewards are periodically halved, ensuring that the final bitcoin won't be issued until about the year For hundreds of years, gold has dominated the safe-haven asset arena, while bitcoin was launched just over a decade ago and has only achieved widespread recognition in the last few years.
Below, we'll compare these two investment options head-to-head:. Bitcoin is also difficult to corrupt, thanks to its encrypted, decentralized system and complicated algorithms, but the infrastructure to ensure its safety is not yet in place. The Mt. Gox disaster is a good example of why bitcoin traders must be wary. Many years later, the legal ramifications of the Mt. Gox situation are still being resolved. Both gold and bitcoin are rare resources.
The halving of Bitcoin's mining reward ensures that all 21 million Bitcoin will be out in circulation by the year While we know that there is only 21 million bitcoin that exist, It is unknown when all the world's gold will be mined from the earth.
There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future. Gold has historically been used in many applications, from luxury items like jewelry to specialized applications in dentistry, electronics, and more. In addition to ushering in a new focus on blockchain technology, bitcoin itself has tremendous baseline value as well.
Billions of people around the world lack access to banking infrastructure and traditional means of finance like credit. With bitcoin, these individuals can send value across the globe for close to no fee. Bitcoin's true potential as a means of banking for those without access to traditional banks has perhaps yet to be fully developed.
Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them. One major concern for investors looking toward bitcoin as a safe haven asset is its volatility. One need look only to the price history of bitcoin in the last two years for evidence.
It has since recovered a portion of those losses, but is nowhere near its one-time high price point. Besides overall volatility, bitcoin has historically proven itself to be subject to market whims and news. Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of , news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly. This volatility is not inherent to gold for reasons mentioned above, making it perhaps a safer asset.
In recent years, a number of alternative cryptocurrencies have launched which aim to provide more stability than bitcoin. Tether, for instance, is one of these so-called " stablecoins. Investors looking for less volatility than bitcoin may wish to actually look elsewhere in the digital currency space for safe havens.
The calculator results are displayed below, giving you daily, weekly, monthly and yearly profits. It will show you how much time, in days, it will take for you to breakeven. It takes into account your hardware costs or contract costs. Bitcoin Gold is one of many altcoins that you can mine. Check out our other calculators to see if another one coin could be more profitable for you.
Coins: Bitcoin Gold BTG. Bitcoin Gold Mining Profitability Calculator If you are curious to see how profitable mining the Bitcoin Gold cryptocurrency can be for you, check out our mining calculator.
Block Reward:. Calculations are based on mean values and do not account for difficulty, price and exchange rate fluctuations.