Similar to natural resources, market players can mine Bitcoin. Mining has attracted multiple crypto enthusiasts to crypto since they get cryptocurrency tokens as rewards after successful mines. In a technical view, crypto mining involves solving complex cryptography processes using high-end computers. A blockchain record the user’s mining data.
Sending BTC is referred to as a transaction. You probably know that regular transactions, whether online or in-store, are recorded by banks, physical receipts, and point-of-sale networks. Bitcoin accomplishes the same through clumping transactions ‘blocks,’ recording them in Blockchains. After that, nodes maintain the documented block records for future verification.
Is BTC Mining Profitable in Nigeria?
You need to consider three aspects (electricity, software, and hardware) to determine crypto mining profitability. Also, you have to consider the current Bitcoin price due to volatility. Another thing is the Nigerian tax which stands at 30% currently.
The generator, software, mining rig, and other associated costs indicate how money-consuming mining digital coins can be. If you want to venture into the mining business, make sure to overlook these factors. Another thing to consider for optimal performance is internet speed. Keep in mind that miners compete with each other to mine blocks. With an unreliable internet connection, your rigs and software will be useless. Keep in mind that reliable internet speed remains a challenge in Nigeria.
A financial analyst Olumide Adesina gave his views on the mining business in the country. He cited the high power that mining crypto requires to mine. He further admitted that Nigeria’s unstable electricity supply would not support the cryptocurrency mining business.
At the moment, mining $32K worth of BTC might not yield substantial returns. That is not to mention additional costs such as the required human capital to monitor the mining machines and rent.
You may not find the crypto mining business cost-effective if you are an individual miner. On the other hand, large-scale mining of BTC worth $32K will cost a significant amount of capital but fail to yield many returns.
Considering other factors like rent and the human capital needed to run the machines disqualifies the crypto mining business in Nigeria.
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