Digital assets, and Bitcoin, in particular, are currently on the verge of making history. The bitcoin price is surging. While its value dropped in August, it has since more than doubled. Bitcoin has now passed its recent all-time high with a current market price of over 100,000 USD. Did those who don’t own Bitcoin miss out?
If you asked Cory Rodriguez, COO of NFN8 Group, his answer would be, “Bitcoin’s greatest asset isn’t necessarily just in its holding and selling — it’s in the process of mining.”
Introduction to Bitcoin and Mining
To understand just how extraordinary Bitcoin’s rise has been and why its greatest asset is the process of mining, the best place to start is a brief introduction to Bitcoin’s history and how its price has evolved.
Bitcoin is the world’s premier form of digital currency. Designed to function as an alternative to fiat money, Bitcoin was first introduced in 2009 by a developer (or a group of developers, some say) who goes by the name of Satoshi Nakamoto. Today, Bitcoin is easily the most valuable digital asset in the world. In mid-December 2024, one coin was equivalent to roughly 108,000 USD.
The process of mining Bitcoin — which NFN8 Group specializes in via its advanced technology and unique philosophy — refers to the competitive act of solving extremely complex mathematical equations. When the mining process is complete, a new Bitcoin is created and officially entered into the Blockchain.
Evolution of Bitcoin Pricing
As NFN8 Group notes, Bitcoin’s rise is truly one of the most remarkable stories in the world of currency, whether physical or digital.
When it was introduced to the digital market, Bitcoin’s price was zero. However, word of mouth and enthusiasm quickly spread, especially in the technology sector, and terms like “digital assets” and “mining” became far more commonly known amongst the public. By 2011, Bitcoin crossed $1 for the first time, and by 2014, its price had skyrocketed to $1,000.
But this surge was only the beginning. By 2017, Bitcoin reached $19,000 for the first time. A few years later, in October of 2021, it reached an all-time high of $68,789. As NFN8 Group and other digital asset experts specify, part of the reason for Bitcoin’s tremendous and continuous rise is that there is a cap on how much Bitcoin can be mined. Only 21 million Bitcoins will ever come into existence, making it a truly rare and limited commodity.
The Thrill and Reward of Mining
For many, the thrill of Bitcoin comes from holding and selling. However, for those truly connected to the digital assets market, the true joys and cost-effectiveness come from mining.
As mentioned, Bitcoin has passed the historic price of $108,000. But the price of mining Bitcoin is nowhere near that number. In fact, most experts currently estimate the cost of mining one Bitcoin to be closer to 40% to 60% of the spot market price, depending on operational costs.
With that said, mining Bitcoin is an incredibly arduous, complex process that requires huge data centers, state-of-the-art computer equipment, and software. Luckily, companies like NFN8 Group specialize in this process and own all necessary equipment. They simplify the processes in an effort to bring unique value to clients. This means you do not need to be an expert to enter the game.
What Comes Next?
As NFN8 Group and any respectable organization will tell investors, predicting the future of digital assets is complicated. However, we can be certain that digital asset mining will continue to play a massive role in the price surges. For this reason, NFN8 Group recommends that investors continue to learn as much as they can about the mining process. The corporation, a true leader in the bitcoin mining industry, offers not only information but also a unique sale/leaseback program in an accessible way. To learn more, check out their brochure.
