FILE PHOTO: An interior view of Chinese bitcoin mining company Bitmain's mining farm near Keflavik, Iceland, June 4, 2016.
FILE PHOTO: An interior view of Chinese bitcoin mining company Bitmain's mining farm near Keflavik, Iceland, June 4, 2016. Reuters/Jemima Kelly

When cryptocurrencies boomed in recent years, companies have started to venture into crypto mining to get a larger share of the pie. With the value of bitcoins fluctuating, is it still lucrative to mine cryptos?

Mining bitcoins is tricky. A supercomputer is needed to solve complex mathematical problems, and super advanced rigs can cost up to US$10,000 (AU$12,800). There are also the skyrocketing electric bills due to 24/7 mining operations. Once done, a new bitcoin will be produced, but its numbers are finite. Bitcoin’s anonymous founder, who goes by the pseudonym Satoshi Nakamoto, has limited the number of bitcoins that can be produced to 21 million.

Because of the rigorous mining process, hackers are conducting cryptocurrency thefts. Inc42 reports that Indian cryptocurrency exchange Coinsecure lost US$3.5 million (AU$4.51 million) worth of bitcoins to theft. The company is now on the lookout for people who can give them leads to the perpetrators and even offer 10 percent of the stolen bitcoin as a reward.

With the possible attack of hackers and fluctuating cryptocurrency value, is it still wise to invest in crypto mining? The answer is a resounding yes. Cryptocurrency expert Chris Burniske projected in 2017 the crypto mining industry’s yearly revenue to be worth US$3 billion to US$4 billion (AU$3.86 billion to AU$4.15 billion) , and with such a glowing forecast, it’s no wonder that many companies are jumping in the said industry.

One of the companies that have ventured into crypto mining is PotNetwork Holding, Inc. (OTCMKTS:POTN) via its new subsidiary, Blockchain Crypto Technology Corporation. POTN is best known as a producer of high-quality cannabis items such as cannabidiol (CBD) oils, vapes, creams and edibles through its Diamond CBD subsidiary. With Blockchain Crypto Technology Corporation, POTN aims to diversify its business in the crypto industry.

CBD and cryptocurrency have enjoyed massive success, especially last year. POTN’s move is seen as strategic for the company to create its niche in both surging industries.

The Blockchain Crypto Technology Corporation recently acquired a customised cryptocurrency mining facility with 115 dedicated cryptocurrency mining rigs.

In the company’s website, Blockchain Crypto Technology Corporation says the value of bitcoin and altcoins such as bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Monero (XMR), Ripple (XRP) and Dogecoin (DOGE) have all increased. This makes it easier for those who are planning to invest in crypto mining to make informed decisions.

The Blockchain Crypto Technology Corporation assures that its CBD coins are fully protected with encryption techniques to avoid online thefts. The company can also vouch for verification of transactions such as the transfer of funds.

There is money in crypto mining, but those interested have to be committed to it in the long run if they want to thrive. Bitcoin mining is not for everyone since, as stated above, it requires equipment and resources. Blockchain Crypto Technology Corporation’s venture has a higher chance of success because of its state-of-the-art mining rigs and customised facility.

Crypto mining will also depend on the value of bitcoins, and it can be unpredictable. The value of bitcoins may have gone down recently, but if it goes up again, those in the crypto mining industry are in for a huge return of investments.