Bitcoin Mining Difficulty is a Myth!!!

A HUGE MYTH BEHIND BITCOIN MINING AND DIFFICULTY

Well, I always heard the naysayers and the mining haters saying that Bitcoin mining (and other cryptocurrencies) is not worth it anymore… that you must be careful about the increasing difficulty…

STOP BEING AFRAID OF THE INCREASING DIFFICULTY!!! THE DIFFICULTY AND PRICE CHANGE ARE CORRELATED! Totally!!!

Real gold rush were miners are hard AF, strong, bold, harsh and cold! THEY COULD HANDLE THE DIFFICULTY!! I guess you need the same soft skills to mine nowadays!

I know they are not 100% correlated but if in the last years you got apart from mining because you were afraid of the mining difficulty, you lost a huge investment opportunity.

I also heard that Cloud Mining companies are scams with the argument that the mining contracts that you buy will not be profitable if the mining difficulty increases and that Could Mining companies hide that from you.

I heard a lot, I got confused, I delayed (unfortunately) the mining investment and I decided to pay to see.
I invested in Cloud Mining and made the research and calcs by my own (like you also should do) but I’m going to present you my conclusions here.

So… i decided to take a close look at the relation of mining difficulty with the profitability of mining. How the difficulty impacts on your revenue, your ROI and if the mining difficulty may ruin or not your profits.

I grabbed the historical prices and difficulty from Blockchain website for the last 3 years and made some charts that came with some surprising conclusions for me.

As you can see here, the Bitcoin price and Difficulty are pretty much correlated at least for the last 3 years. I guess this means that those who were not afraid of the difficulty won some nice bucks!!!

Meanwhile, I decided to come out with a new indicator (at least new for me): the relation of the difficulty with the price.
I called it “Difficulty Strength” and is something like this:

Difficulty Strength = Difficulty / Price

The difficulty strength shows the Strength, i.e. how heavy or strong is the difficulty in relation with the Bitcoin price. As you can see, strength rarely goes is more than 0,4.

This chart give some hints when is more profitable to mine. When the strength is lower, it should be more profitable. Interesting right?

Another interesting chart I made: relate the price variation with the difficulty variation.

See how both variations are correlated but that many times the price variation is greater than the difficulty variation?! Cool right?

Now the last graph. It shows the accumulated variation of both Bitcoin price and Difficulty variation. The red is the price and blue difficulty.

As you can see, for most of the time, the accumulated variation of the price is greater than the accumulated variation of the difficulty.
This also helps to conclude that the price variation surpass almost always the difficulty variation

To say that it is not worth to mine because of the difficulty is like saying that you should not start your business because there are competition. Yes, competitions make it more difficult but also works as a market maker!

Now, after this I really that those guys writing the “Scam alert : Do NOT INVEST in Genesis Mining” threat, instead of complaining bla bla bla bla, if they invested on it in 2015 they should have some nice BTC in their pockets right?
I guess it goes like this: talk less and do more. The ones who get rich, don’t get rich talking but making things done (unless you are a motivational speaker)!

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Take also a look at this interesting AF articles:
STOP Investment Diversification!
My Investment Strategy - I Don’t Care, I Love It
Compound Interest is What May Get You Rich

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