Bitcoin Mining Latest:
Bitcoin Mining has become big business. 2016 through to 2017 saw an explosion in the number of people mining Bitcoin and other Cryptocurrencies. Specifically Bitcoin. In that time though difficulty and costs have changed dramatically.
On top of that, the price of Bitcoin has dropped over 50% from its all time highs in late 2017. Also, Ethereum lost over 60% of its value. Even Litecoin (LTC) and Bitcoin Cash (BCC/BCH) have dropped by similar values.
This loss of value in the bear market and increases in difficulty over time has led to people struggling to make a profit. Particularly from mining bitcoin. Genesis mining has been canceling Bitcoin contracts because it’s no longer profitable.
Even Hashflare, a popular cloud mining site recently announced it was canceling Bitcoin cloud mining contracts and had placed restrictions on withdrawals. You can read about that here
Many people now mine bitcoin and other cryptocurrencies from home. Spare rooms, closets, and garages have become makeshift mining farms from people aiming to strike it rich in crypto.
At Low Cap Crypto we decided to take a look at a couple of the most popular rigs to find out if mining is still profitable but first let’s looks at the factors that determine mining profitability.
Bitcoin Mining- determining profitability:
There are lots of things that can factor into how profitable your Mining rigs will be. The biggest cost associated with mining is power. The price of power differs depending on where you live in the world.
And it also differs whether you are a residential user or industry user too. Just for households alone, there is a huge disparity across the world. In India, the cost per kWh is only 6 cents but in Germany for example it is over 30 cents. This means it is 5 times more expensive to power your rigs in Germany than in India.
Another factor to consider is the cost of the rigs themselves. Many mining rigs rely massively on graphics cards. Just in the last 12 months alone, the price of some graphics cards have risen almost 300%.
For miners with a longer term outlook, this won’t be too much of an issue. But for the short term speculators, this could delay the return on investment by months.
How difficult a coin is to mine is also another factor. Over time block rewards get smaller and the mathematical equations that need to be solved get harder and the hash rate (number of miners working on the network).
Popular Rigs- Are They Profitable?
Nvidia GTX 1080 ti.
The Nvidia GTX 1080 Ti is a very popular brand of graphics card used. You can expect a hash rate of around 30 MH/s with a power consumption of 250 watts. This means that even if your rig is only being charged the lowest rates globally for the power you’d still be losing $10 dollars a month if you are mining bitcoin. That’s before you add in the cost of buying and assembling the other components needed for the rig.
AMD Radeon RX580.
The AMD Radeon RX580 is another popular choice among GPU miners. It’s power is 1257 MH/s and it has a power consumption of 185w. This card is very cheap compared to many others but packs a punch. Despite that, mining Bitcoin is still not profitable at all. Even with the cheapest power money can buy you would still be losing close to $10 every single month.
Looking at other coins, besides Bitcoin, for the vast majority of the world unless you are mining in China, India or Malaysia mining Ethereum, Z cash, Dash or any of the other popular coins is more profitable. Even then it’s still hardly worth your time as you can expect to see in the region of maybe 200 bucks profit for a year.
Lots of people have decided to switch to using Application-Specific integrated or ASIC rigs. These rigs are more energy efficient and powerful than mining with GPU’s. However, they are still just as vulnerable to price fluctuations and mining difficulties as GPU miners.
The best and most popular of them is the Antminer S9 13.5T. This rig would set you back between 1000 and 6000 dollars. It has a hash rate of 13.5 TH/s and a power consumption of 1350w. Again even with this rig for most people, it is not profitable to mine bitcoin. At even just 15 cents per kWh for the power, you would be losing over $40 a month.
So What Are The Options?
It’s clear that mining bitcoin for the vast majority of the world simply isn’t profitable. Even coins like Ethereum, Dash, Z cash and other popular mining coins simply aren’t profitable right now for a lot of the world due to power costs. Not even with many cloud mining companies. You can however mine other coins.
New coins need miners. Even Proof of Stake coins to start with. Mining new coins can be very attractive as difficulty is lower than bitcoin and other Cryptocurrencies. Also, the number of coins paid out as a reward is often very high. This type of mining however is very speculative. New coins won’t be listed on exchanges. And even when they are they often take time to establish a good value but shop around and see. You may find a coin that works for you.
As always you can find out more information about earning a passive income with Cryptocurrency. Check out our Fundamental analysis section for more details.