“Inflation,” is the word of the year. Everything is getting more expensive by the day, and that includes items you need to mine bitcoin. So, will it be profitable to mine bitcoin during inflation?
First, you need to view a bitcoin mine as a business; it’s either profitable, or it’s not. Many things can affect the profitability of your bitcoin mine, such as the cost of energy, the efficiency of miners, and the price of Bitcoin. Another factor that can greatly affect your operations is inflation.
As prices rise and the effectiveness of the dollar goes down, it’s smart to reevaluate your bitcoin mining strategies. The main factor that will determine if your bitcoin mine is profitable, or not, is the cost of energy. Your mine needs a steady flow of energy to process transactions on the blockchain, to be awarded with fresh Bitcoin. The solution is to utilize excess energy sources that were going to be wasted otherwise, sourced from hydroelectric dams, wind turbines, and even oil fields.
Inflation will rise and fall, but the best way to navigate seasons of intense inflation is to focus on keeping energy costs as low as possible. To do this, you must be creative. Like mentioned earlier, excess energy is the best route for this. It’s energy that would otherwise be wasted, so utilizing it to power a bitcoin mine is an incredibly smart option.
To make this concept clearer, imagine that you own a hydro dam. It runs all day and night, generating electricity for a nearby city. Well, sometimes your hydro dam produces too much electricity for the nearby city to use, so you would need to shut down your hydro dam and wait for the city to need electricity once it uses all that was produced earlier. Instead of shutting down the hydro dam, let it continue to produce electricity for free, and have it power the on-site bitcoin mine you just installed. Pretty smart, right?
By allowing your imaginary hydro dam to power your bitcoin mine, you essentially create a secondary source of income for your business, lightly diversifying your company’s cash flow. Diversification is a safe long-term option that is used by the best of entrepreneurs and investors. Why not apply it to your bitcoin mining operation?
Instead of sitting around, worrying about bitcoin during inflation, take a proactive approach and increase your company’s revenue streams through building and powering a bitcoin mine with your excess energy source.
Pivoting is an essential strategy that all businesses need to master to properly navigate and succeed in the market. You cannot expect to stay the same and continue to profit in the long run. As an owner or professional in the energy industry, you probably already understand this concept. Business is always changing, and the best companies expect to alter their business and marketing strategies regularly to keep their business relevant and profitable.
For example, think about the era when personal computers became a reality. At first, it seemed like a futuristic dream that only George Jetson, from The Jetsons, could expect to utilize daily. As computers became more advanced and programs were developed that helped people and businesses to automate and streamline their processes, the world began to accept the fact that personal computers were now a reality.
The companies that understood the power of the computer, and how it would one day change the world, became some of the most powerful and profitable companies to ever exist. At the time, everyone thought their companies were crazy and were betting a lot of money on a concept that would not become profitable.
These companies saw the opportunity and pivoted towards creating powerful computers that could help people. And as time went on, they continually pivoted as they saw even more opportunities in the personal computing industry. Learn from these stories. Understand that the future holds many new and powerful opportunities for your company. But you must be ready to act.
Don’t be like most companies that only accept powerful new technologies and opportunities once everyone else has already began the process. The first ones to act, are the ones to prosper. Bitcoin is a new technology that can change the future of your energy company forever. Don’t waste good energy. Utilize a bitcoin mine to transfer that wasted opportunity into valuable cash flow.
The time to act, is now. Bitcoin is here to stay, and Liquihash has created a lucrative opportunity for your company that can help your company grow. The choice is yours; will you leverage this powerful technology to significantly grow your company, or will you be left in the dust? This may seem like a harsh thing to hear, but we want you to fully realize the opportunity at hand.
Liquihash has been in the bitcoin mining industry for a while and serves to create and operate bitcoin mines that are powered by excess energy sources. If you own or operate an excess energy source of any kind, reach out to Liquihash and we will build and manage your bitcoin mine, or you can even allow us to pay you a regular royalty if you allow us to use your excess energy source to power our own future bitcoin mining operation.
If you’ve been worried about inflation affecting your bitcoin mine, now is the time to act. Visit Liquihash for more information.