Profitable Cryptocurrency Mining:
With the exorbitant increase in the value of crypto coins the idea of jumping into mining cryptocurrency holds a great deal of allure. Using Bitcoin as an example, with its price at near $55,000 as of this writing, it would seem a slam dunk to jump into the mining arena. Buybitcoinworldwide describes 7 Reasons Bitcoin Mining is Profitable and Worth It in 2021, but the prospective miner should truly understand what they are getting into.
Here are a few statistics to sink your teeth into:
- The cost of the latest ASIC mining hardware is about $15,000 for a hashrate of 110 TH
- The estimated total hashrate (computing power currently doing mining across the network) for bitcoin currently is 171 Quintillion transactions per second.
- That means 1 of those super mining rigs has a 1 in 1,554,545.45 chance of being the machine that solves the proof of work in a given puzzle cycle.
- The winner in the proof of work contest gets 6.25 coins and a winner is awarded about every 10 minutes meaning there are about 150 winners per day.
- At that rate, you would expect to win the puzzle race once every 28.5 years using one of those rigs.
- At today’s Bitcoin price, 6.25 coins is worth $343,750.
- Don’t forget about the electricity costs to power that unit (3250 Watts) which, with favorable pricing would be under $2/day or about $700/year. This single variable (electricity cost) is probably the most critical variable that serious miners have some control over (based on where you locate your mine). Companies like Ecochain Mining are aggressively pursuing ways to do this.
- Don’t forget to throw in cooling and space. (varies dramatically)
- Profit? $343,750 – ($15,000 mining rig + $20,000 power for 28.5 years + Cooling & Space for 28.5 years) every 28.5 years assuming the rig lasts forever
- Of course your mining hardware will probably only have a lifespan of about 3-4 years at best. So you’ll need to replace the gear periodically.
Bring it together and scale up:
Armed with that information, you can see why organizations that are serious about this are diving in with hundreds & even thousands of these mining rigs. Economies of scale drive down the cooling and space costs when measured per mining rig. A Bitcoin farm with 1000 of the latest mining rigs can expect to solve a puzzle once every 10.4 days at the current hashrate.
For an interactive calculator, try this Bitcoin Mining Profit Calculator at Buybitcoinworldwide which uses a live Bitcoin price feed and a variety of factors including the size of the total hashrate for Bitcoin mining.
To further mitigate the game of chance that your rig will win, miners join mining pools. If you join a pool (which you surely have to given the total hashrate now), the rewards are shared according to the rules of that pool and often paid at the end of each day based on any coins mined by members of the pool.
Ready to jump in?