Mining has opened the door to different types of industries, such as those that manufacture the machines that allow miners to extract large volumes of cryptocurrencies from a related protocol, or companies that sell computing power to miners, just like NiceHash does.
Operational since 2014, NiceHash had a major security flaw in 2017 that “undermined” its credibility.
The platform not only provides a service for buying and selling computing power but also offers other services such as the sale of ASICs, algorithms, pools and also has a small exchange to trade cryptocurrencies generated by miners. This is only related to Bitcoin (BTC).
NiceHash therefore acts as an intermediary between the miners that actually extract crypto assets and those who want to rent the computing power, so it is a sort of marketplace to match supply and demand.
NiceHash provides a minimal entry-level plan, not too demanding and within the reach of all those who want to become miners.
Mining is profitable when carried out in a certain way, with all costs taken into account.
These costs include electricity consumption, maintenance, renting space to place the machines and so on.
These costs change depending on the country and can vary by hundreds of thousands of euros.
Is it worth becoming a miner?
The answer varies depending on the type of approach, which can involve creating a real business in order to make a profit from the sale of the assets or accumulating them and holding for the long run.
In the first case, it is convenient to invest in a service like NiceHash in order to have more computing power.
In the second case, rather than buying all the equipment, it is better to buy the cryptocurrencies directly from an exchange. Obviously, this depends on the type of crypto you want to buy, but in many cases, domestic mining is not so profitable.
To this end, there is a calculator on the NiceHash website to understand how much you need to invest in order to get interesting returns.