Mining is a profitable business, but there are always risks of bans in different countries.
As the price of $BTC surges and demand outpaces supply, @WhiteHouse
worried $BTC mining could put significant strain on the power grid; crypto officials tell @FoxBusiness
fears are overblown but will be used to try and increase regulation on the industry. More now
https://twitter.com/CGasparino/status/1762525370455032023
Topic: Is Bitcoin mining a profitable business? (Read 668 times)
Introduction
In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
In a case where I happen to be the only one that sells a particular brand within a region or state, it is expected of me to make profits. But if there are other competitors that sell the same brand as me within the same region, the tendency of making profits is likely not to happen due to the competition.
I tried to apply a similar scenario to Bitcoin mining. We all know that several miners around the world compete to solve a difficult mathematical problem, which aids the creation of a block. After the successful creation of a block, the miner is rewarded with some Bitcoin. Sadly, I can't tell the exact number of miners globally, but I think their population is enough to make the reward process very tough.
Questions
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
Note: I am asking these questions based on a miner's perspective, considering the cost of power supply consumed and the fixing/replacement of faulty mining machines.
In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
In a case where I happen to be the only one that sells a particular brand within a region or state, it is expected of me to make profits. But if there are other competitors that sell the same brand as me within the same region, the tendency of making profits is likely not to happen due to the competition.
I tried to apply a similar scenario to Bitcoin mining. We all know that several miners around the world compete to solve a difficult mathematical problem, which aids the creation of a block. After the successful creation of a block, the miner is rewarded with some Bitcoin. Sadly, I can't tell the exact number of miners globally, but I think their population is enough to make the reward process very tough.
Questions
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
Note: I am asking these questions based on a miner's perspective, considering the cost of power supply consumed and the fixing/replacement of faulty mining machines.
The answer is a big YES!
Mining business has turned into industrial business and many at-scale mining farms are growing. So it's reasonable to be a competitive and tough business but it's still one of the most profitable industries with the minimum Return of investment around 17 months on average! It makes it very lucrative business for investors that know its risks.
There are some parameters and essentials you need to provide in order to afford launching a mining farm.
1- Cheap electricity rate in range of 3-5 $cent /kwh
2- having high initial budget to spend buying equipments
3- Having an exact business plan for cost & revenue
4- planing for maintenence and supply on frequent base to keep high uptime
It's the most profitable business atm if you can satisfy its requirements, no matter how many miners exist in the maket!... The price will adapt itself with the Bitcoin network difficulty and competition
Here in Brazil, the US$0,23/kWh makes mining impossible resulting in negative profit, you have to pay to turn ON your rig.
The ROI of an RTX4080 is around 188 months if you are lucky not to burn it or it reaches an antecipated end of life.
The ROI of an RTX4080 is around 188 months if you are lucky not to burn it or it reaches an antecipated end of life.
The mining of Criptocurrancy is so expensive.Cryptocurrency mining can be profitable under the right circumstances but it depends on several factors such as the cost of electricity the price of the cryptocurrency being mined, the efficiency of the mining hardware and the difficulty level of mining. Profitability can fluctuate significantly over time due to changes in these factors and market conditions.
Eventually mining can require substantial upfront investment in equipment and ongoing operational costs. It's crucial for miners to carefully consider these factors and perform detailed cost-benefit analysis before getting involved in mining.
Excess electricity has been used for mining and it directly effects to environments.
China have been stop their mining BTC 2022 for the reason of pollution of environment. Most Bitcoin mining occurred in the United States, according to IP addresses from so-called hashers that used certain Bitcoin mining pools in 2021.
Eventually mining can require substantial upfront investment in equipment and ongoing operational costs. It's crucial for miners to carefully consider these factors and perform detailed cost-benefit analysis before getting involved in mining.
Excess electricity has been used for mining and it directly effects to environments.
China have been stop their mining BTC 2022 for the reason of pollution of environment. Most Bitcoin mining occurred in the United States, according to IP addresses from so-called hashers that used certain Bitcoin mining pools in 2021.
Introduction
In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
In a case where I happen to be the only one that sells a particular brand within a region or state, it is expected of me to make profits. But if there are other competitors that sell the same brand as me within the same region, the tendency of making profits is likely not to happen due to the competition.
I tried to apply a similar scenario to Bitcoin mining. We all know that several miners around the world compete to solve a difficult mathematical problem, which aids the creation of a block. After the successful creation of a block, the miner is rewarded with some Bitcoin. Sadly, I can't tell the exact number of miners globally, but I think their population is enough to make the reward process very tough.
Questions
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
Note: I am asking these questions based on a miner's perspective, considering the cost of power supply consumed and the fixing/replacement of faulty mining machines.
In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
In a case where I happen to be the only one that sells a particular brand within a region or state, it is expected of me to make profits. But if there are other competitors that sell the same brand as me within the same region, the tendency of making profits is likely not to happen due to the competition.
I tried to apply a similar scenario to Bitcoin mining. We all know that several miners around the world compete to solve a difficult mathematical problem, which aids the creation of a block. After the successful creation of a block, the miner is rewarded with some Bitcoin. Sadly, I can't tell the exact number of miners globally, but I think their population is enough to make the reward process very tough.
Questions
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
Note: I am asking these questions based on a miner's perspective, considering the cost of power supply consumed and the fixing/replacement of faulty mining machines.
Mining is no different from any other business. You should try to spend as little money as possible in running costs and earn as much as possible in rewards. Possibility of finding a block depends on your size, bigger operations have more chances. Another option is to join a mining pool if you can't afford a huge farm.
But all in all, you should try to find the best location, with lowest electricity prices, reasonable employee wages and taxes. Some powerful, efficient and modern hardware will also be helpful. And finally, like in any other business venture, you'll need some luck.
It depends. Mining takes a lot of investment—equipment, electric bills, internet, and more than you can imagine.
Electric bills and internet are running costs, not investment!
but it is possible if you can afford it and are knowledgeable about building a fine and efficient mining rig.
Nobody builds mining rigs, you buy an ASIC, you put it on a shelf and you power it on, the only time the miners decides on efficiency is when he buys the type of gear he will mine with it.
Bitcoin mining was profitable but now gradually decreasing mining hash rate regularly.
Yeah I can see that decrease:
100% up in a year /S
So that when you join a mining pool, you have the opportunity to be able to do more creative things within the circle and industry, and as well you need that funding to be able to do quite a number of things, for example, an affordable electricity, to earn rewards that you are planning or that you are aiming in the mining industry even if it is not monthly though.
Creative things , like?
Writing poems about bankruptcy or what?
I have a feeling that more times passes and Bitcoin grows as well as adoption the more of a mystery mining begins to look to some, much like religion!
I mean seriously, it's basic business, you have x and y, just as you plan a donut shop near NYPD headquarters or a pork ribs food stall in Riyadh, it's pure economy, you have the means or you don't, cost and profits, 5th grade elementary school economics.
well the donut shop near the cops will work.
but the pork ribs I am not so sure.
It depends. Mining takes a lot of investment—equipment, electric bills, internet, and more than you can imagine.
Electric bills and internet are running costs, not investment!
but it is possible if you can afford it and are knowledgeable about building a fine and efficient mining rig.
Nobody builds mining rigs, you buy an ASIC, you put it on a shelf and you power it on, the only time the miners decides on efficiency is when he buys the type of gear he will mine with it.
Bitcoin mining was profitable but now gradually decreasing mining hash rate regularly.
Yeah I can see that decrease:
100% up in a year /S
So that when you join a mining pool, you have the opportunity to be able to do more creative things within the circle and industry, and as well you need that funding to be able to do quite a number of things, for example, an affordable electricity, to earn rewards that you are planning or that you are aiming in the mining industry even if it is not monthly though.
Creative things , like?
Writing poems about bankruptcy or what?
I have a feeling that more times passes and Bitcoin grows as well as adoption the more of a mystery mining begins to look to some, much like religion!
I mean seriously, it's basic business, you have x and y, just as you plan a donut shop near NYPD headquarters or a pork ribs food stall in Riyadh, it's pure economy, you have the means or you don't, cost and profits, 5th grade elementary school economics.
Considering large pool miners. it do not seems to be a good business now days. Value of your ASICC miners will decrease every day you might end up even broke. It needs a good strategy along with big investment to be profitable
Introduction
In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
Uber just made a profit recently in Q2 2023. Btw as far as I know, sometimes mining companies are forced to mine when the profit almost doesn't exist, there are moments like that when the price is very low or when the halving comes, and no one can compensate 2x less reward immediately.In the ever-busy world of business, profits and losses are key components experienced by those in it. However, from a very tender age until this minute, I have not come across anyone who chooses to make losses. Certainly, everyone loves to make profits through any means possible.
Bitcoin mining is a very profitable business, because mining companies pay back their investments in 1 year.
Bitcoin mining is not a very profitable business, at least not for an average person. It's profitable for those who have free or very cheap electricity and competition is so high that commercial companies have occupied cheap electricity with some bribes to politicians.Bitcoin mining was profitable but now gradually decreasing mining hash rate regularly. But when Bitcoin mining hash rate was large then it was profitable i think. Moreover huge people still mining Bitcoin. For Bitcoin mining we have to see some things.
It's the opposite. Mining becomes less profitable when more people mine on the global market, e.g. when the total hashrate volume increases. When hashrate decreases, the difficulty decreases too and it's easier to profit. If you are a novice investor with several ASIC containers, then you will use a mining pool and not try to mine solo. When you have 1-2 megawatts per hour of energy consumption, then you will not play the solo mining lottery 
Bitcoin mining is a very profitable business, because mining companies pay back their investments in 1 year.
Is there a thread here that can teach me how to how to join a mining pool? Is that even a guarantee that the ROI for mining is guaranteed in a year? Because that seems kind of a pain to be waiting for it and why are a lot of replies discouraging solo mining? Wouldn't that be the better one especially in terms of transaction fees since that's a reward for miners right? And with solo mining, wouldn't you not be splitting that rewards with other miners in the mining pool? How much is the capital needed to start a bare minimum but would still yield me a profit mining rig? Bitcoin mining is a very profitable business, because mining companies pay back their investments in 1 year.
Questions
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
1. With the large population of miners around the world, could every miner earn a reward at least once a month?
2. If it's impossible for every miner to earn at least once a month, does that mean that mining is not a profitable business?
Well, as to whether miners are going to earn money every month or not, it's not really something that someone can completely identify because of a number of factors that there are different. There are a great population of people mining out there in different places of the world, the number of people mining is humongous right now already. there is no any specific guarantee that could come from anybody that can specify that as a miner you must earn every month.
However, not earning every month does not really mean that you cannot even be big in the Bitcoin mining industry. All it takes for you is for you to be able to join a great mining pool, I think that is better than you just being a Solo Miner.
So that when you join a mining pool, you have the opportunity to be able to do more creative things within the circle and industry, and as well you need that funding to be able to do quite a number of things, for example, an affordable electricity, to earn rewards that you are planning or that you are aiming in the mining industry even if it is not monthly though.
Bitcoin mining was profitable but now gradually decreasing mining hash rate regularly. But when Bitcoin mining hash rate was large then it was profitable i think. Moreover huge people still mining Bitcoin. For Bitcoin mining we have to see some things.
* Quantity of ASICs.
* Maintenance costs.
* Electricity cost.
* Cooling cost.
* Miners salary etc'
After calculate that's costing we have to calculate It's profit. If coating were low then mining amount, then it will lose and if mining were more then costing then it will be profitable i think.
* Quantity of ASICs.
* Maintenance costs.
* Electricity cost.
* Cooling cost.
* Miners salary etc'
After calculate that's costing we have to calculate It's profit. If coating were low then mining amount, then it will lose and if mining were more then costing then it will be profitable i think.
I would like to add one good idea: mining on ASICs is profitable when you have a lot of ASICs, at least several dozen ASICs.
If you have 2 ASICs and one breaks, then the profit figures will be completely different. This is the risk of home mining with limited power.
If you have 2 ASICs and one breaks, then the profit figures will be completely different. This is the risk of home mining with limited power.
Six cent as your full power cost per kwatt
Top of the line gear
Has made money on a very steady basis.
Lets examine an s19xp
140 x 0.0766 = $10.73
3.3 kwatts x .06 x 24 = $4.72
today you net $6.01 on that gear
lets rush to ½ ing
10.73/2 = 5.365
5.365 - 4.72 = 64 cents profit
So I would say it works so far
at 6 cents total cost per kwatt. with top of the line gear.
Some big guys have 3 cent total cost they rake it in.
Top of the line gear
Has made money on a very steady basis.
Lets examine an s19xp
140 x 0.0766 = $10.73
3.3 kwatts x .06 x 24 = $4.72
today you net $6.01 on that gear
lets rush to ½ ing
10.73/2 = 5.365
5.365 - 4.72 = 64 cents profit
So I would say it works so far
at 6 cents total cost per kwatt. with top of the line gear.
Some big guys have 3 cent total cost they rake it in.
It depends. Mining takes a lot of investment—equipment, electric bills, internet, and more than you can imagine. Is mining profitable? Yes, if you are ready to invest in high-end equipment, but it is possible if you can afford it and are knowledgeable about building a fine and efficient mining rig. But don't expect that the profit will return in a short time because mining takes a lot of time before you can earn, and even if you earn, it is still not enough to pay for the bills because, aside from expenses in building the setup, you will also have expenses in electricity, which could be a heavy burden. So if you really want to mine, then you better have a stable job. Profitable, yes, if you can shoulder the investment and the hardship because it's not easy to maintain the rigs, cleaning, ensuring the wiring is fine, and the temperature of your equipment to avoid short circuits.
Mining is a profitable business if you can find a competitive advantage for cost savings, or multiple income streams.
Most commonly this is done by getting good and creative electricity deals, research: Stranded Gas Mining
Dual income can come from selling the heat created by the miner for specific situations, some of this is done in the marijuana growing business.
Most commonly this is done by getting good and creative electricity deals, research: Stranded Gas Mining
Dual income can come from selling the heat created by the miner for specific situations, some of this is done in the marijuana growing business.
The short answer is... DEPENDS. And it indeed depends on a lot of factors. For example, in which state do you want to mine, how much do you pay for electric bills, do you want to house the miner or not, etc.. BUT! Mining is really fun and you can also mine ALTCOINS like Kaspa...
it's not game over. Mining's like surfing big waves; it's intense, and not everyone catches the perfect ride. Some months, the rewards might be sweet, other times not so juicy. It's a rollercoaster. But, and it's a big but, profitability is a tricky beast. Costs like power bills and fixing up your mining rig can take a bite out of the gains. It's like trying to balance on a seesaw, you gotta weigh your costs against what you're hauling in.
Not everyone's gonna hit the jackpot every month. It's a bit like panning for gold; sometimes you strike it big, other times, not so much.
Not everyone's gonna hit the jackpot every month. It's a bit like panning for gold; sometimes you strike it big, other times, not so much.
You actually went though multiply and dividing rather than go straight for 144*30?
It's all some sort of approximation. You certainly noticed that not all months are just 30 days long, nor are 52 weeks a full year (~1.25 days missing, that's already on average worth 180 blocks). Your 144*30=4320 is also different from my estimate of around 4368 blocks per month. Doesn't matter, we're roughly in the same ballpark...
The crucial point (for others) is: if you're interested in mining, DO the math!
- assuming on average 2016 blocks per two weeks --> (2016 times 26) divided by 12 equals 4368 blocks per month on average
Such a miner would need a mining farm of ~865 (121,108 divided by 4368) of such devices and as cheap as possible access to power delivery of at minimum 2.6 MWh for the ASICs alone (not accounting for power losses of distributing the power internally, operating the mining farm facility, cooling, ...).
He would need the same if he would be mining in a pool, yours till need the same thing, asics, power, land, technicians, there is no difference in it, the only difference would be like for for a farm to sell it's products to a chain of grocery stores or do it themselves, all the manufacturing process is the same.
That's serious business and investment for one block per month on average and I'm already assuming ideal operating conditions.
Let's replace your 865 S19 with 605 S21, that would be 2.4 mils but you're looking at 7.364 BTC (last block revenue per month)
Now you could get that hashrate and mine at Viabtc and get 0.00000198 BTC per th/s so 0.23979384 BTC a day, 7.1938152 a month!
See? No real difference in revenue, it's just that it won't be a daily payout and you risk both getting a low block fee but also hit the jackpot.
You can make that a block every two months or a block every one week, the revenue and investment model is the same!
It's all about how deep your pockets are!
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