Topic: Is mining Profitable in 2022? (Read 542 times)
Bitcoin mining is very expensive for a miner. Many people have tried Bitcoin mining before but every time they have to pay huge electricity bills so they stop themselves from doing Bitcoin mining in the future. Mining a Bitcoin requires many machines and the amount of electricity consumed by all those machines makes mining a Bitcoin more expensive. Not everyone is successful in Bitcoin mining but there are many who have failed many times in Bitcoin mining and they have suffered a lot of losses in total. And those who have achieved success in Bitcoin mining have seen their mining cost fall much higher than the market price of a Bitcoin. Maybe that's why bitcoin mining is currently closed.
Just curious..... BTC.com data shows that a mere two mining entities—Foundry USA and AntPool—currently control over 51% of the BTC network’s overall hash rate. Earlier in 2022, it took the top three BTC mining entities to account for a similarly dominant chunk of the overall hash pie.
Now in 2023, add in the third-ranked F2Pool, and the top three miners control over two-thirds of the hash pie. Add in ViaBTC (#4) and Binance Pool (#5), and the top five miners control over 85%, leaving the rest of the pack scrambling over the scraps. How is that DECENTRALIZED cryptocurrency when 85% of the bitcoin mining is controlled by just 5 major mining pools? How can any small-scale miners possibly make any profit over time?
Now in 2023, add in the third-ranked F2Pool, and the top three miners control over two-thirds of the hash pie. Add in ViaBTC (#4) and Binance Pool (#5), and the top five miners control over 85%, leaving the rest of the pack scrambling over the scraps. How is that DECENTRALIZED cryptocurrency when 85% of the bitcoin mining is controlled by just 5 major mining pools? How can any small-scale miners possibly make any profit over time?
10 Bitcoin Mining Predictions for 2023
Here’s a list of Bitcoin Mining Predictions for 2023:
The bitcoin bear market will come to an end
Bitcoin’s hashrate growth will slow down
The number of public miners will decline
Hosting prices will fall
Cost minimization will be essential in 2023
ASICs will become dirt cheap
Miners will struggle with achieving sufficient up-time
Regulators will keep targeting bitcoin mining
Miners will work on strengthening their balance sheets
Miners will increasingly utilize Bitcoin mining derivatives
https://hashrateindex.com/blog/10-bitcoin-mining-predictions-for-2023/
Here’s a list of Bitcoin Mining Predictions for 2023:
The bitcoin bear market will come to an end
Bitcoin’s hashrate growth will slow down
The number of public miners will decline
Hosting prices will fall
Cost minimization will be essential in 2023
ASICs will become dirt cheap
Miners will struggle with achieving sufficient up-time
Regulators will keep targeting bitcoin mining
Miners will work on strengthening their balance sheets
Miners will increasingly utilize Bitcoin mining derivatives
https://hashrateindex.com/blog/10-bitcoin-mining-predictions-for-2023/
Bitcoin mining will probably be always profitable, specially if you consider the expected future value of the coins.
This number is hard to pin down in 1/3/2023, but according to the World Economic Forum, there are approximately 3372 functioning satellites orbiting the earth, and about 1/3 of them used for communications purposes. Would it be possible to convince one of the companies operating their satellites to let some bitcoin miners piggyback some mining software on their internal systems to see how well it works? What would need to be the minimum price of bitcoin to make the mining rewards cover the costs of operating a satellite? Think about bitcoin mining nodes in outer space....Solar powered electricity = unlimited. GPU cooling = unlimited.
Yet in 2022 around 330k BTC was mined.
Amazing how people assume a small sample magically applies to everyone ...
Amazing how people assume a small sample magically applies to everyone ...
Messari analyst Tom Dunleavy tweeted:
"BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022
This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade"
https://twitter.com/dunleavy89/status/1607495480677699585?
"BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022
This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade"
https://twitter.com/dunleavy89/status/1607495480677699585?
Biggest issues for miners in 2022 were:
* electricity prices, energy crisis (in some countries up from ~$10c/kwh to whopping 30c/kwh so x3 in less than a year!)
* crypto winter, prices going down
So, I guess miners shouldn't feel overly happy about 2022...
Yes, it is true that the war between Ukraine and Russia has had an impact on the world, especially on oil. Due to the conflict with Russia as a result of the war in European countries, there is a severe shortage of fuel oil. But except for a few countries in the world, all countries have abundant reserves of electricity, in which case the scarcity of electricity should not have any effect on mining. However, the massive decline in prices to the downside in 2022 has a negative impact on mining. The price inversion with the Bitcoin mining reward is causing major mining companies in the world to go bankrupt. For example, the bankruptcy of Core Scientific Mining Company was announced a few days ago. * electricity prices, energy crisis (in some countries up from ~$10c/kwh to whopping 30c/kwh so x3 in less than a year!)
* crypto winter, prices going down
So, I guess miners shouldn't feel overly happy about 2022...
That is a bit of a problem when a bear market situation for miners complicates them in mining activities as usual, but this bear market is an opportunity for them to mine, but requires calculation of electricity costs, electric power is a major factor and is the most important in mining Bitcoin, this year which has a low electricity cost in their area, of course they get a profit, although it's not like the profit during a bull market.
The recent fall in the price of Bitcoin has created a major problem. As much as this is a problem among cryptocurrency traders, it is now an even bigger problem for the miners. As we know miners are able to profit in Bitcoin mining in two ways. One is when the price of Bitcoin is high and the other is when the cost of mining is reduced to profit from it.Currently, due to the war in Ukraine and Russia, there is a major energy or fuel crisis in every country of the world, as a result of which the service is not available as per the demand. Electricity prices have increased relatively in every country. Even if miners uses enough electricity, miners will be at great risk due to the low price of Bitcoin at this time. Consequence of this fact i cannot consider mining will be profitable at this period.
Mining only becomes profitable if Bitcoin's price value is in a bullish season. This is what has been observed in the past few periods of the bull run.
Yes, I agree, in general Bitcoin profits will be obtained in bullish times, both investors (long time holders) and miners, but in this year's circumstances they only get a little of their profits, due to the bear market factor that is currently slumping the market.Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
That is a bit of a problem when a bear market situation for miners complicates them in mining activities as usual, but this bear market is an opportunity for them to mine, but requires calculation of electricity costs, electric power is a major factor and is the most important in mining Bitcoin, this year which has a low electricity cost in their area, of course they get a profit, although it's not like the profit during a bull market. 
Biggest issues for miners in 2022 were:
* electricity prices, energy crisis (in some countries up from ~$10c/kwh to whopping 30c/kwh so x3 in less than a year!)
* crypto winter, prices going down
* ETH moving from POW to POS
* supply chain disruptions after Covid19 (new wave starting in China?)
So, I guess miners shouldn't feel overly happy about 2022...
* electricity prices, energy crisis (in some countries up from ~$10c/kwh to whopping 30c/kwh so x3 in less than a year!)
* crypto winter, prices going down
* ETH moving from POW to POS
* supply chain disruptions after Covid19 (new wave starting in China?)
So, I guess miners shouldn't feel overly happy about 2022...
Mining only becomes profitable if Bitcoin's price value is in a bullish season. This is what has been observed in the past few periods of the bull run.
Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
If miners are encouraged to mine then it will undoubtedly be profitable. Generally we know that mining requires some quality parts with enough energy. Which seems normal but actually has great value. Mining will be profitable while Bitcoin remains bullish. If Bitcoin miners can't extract profits after mining, then mining will slow down.Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
In order for mining to be profitable, a miner must have special knowledge of a few things. As such a miner needs to have a good understanding of hardware. A device that has more computing power with less energy. It also needs cheap electricity that will help reduce the cost of mining and have an efficient mining pool. If costs can be reduced in some of these areas, then some profit can be made in the quality. After all, since the price of Bitcoin is low, mining will not be profitable.
Mining only becomes profitable if Bitcoin's price value is in a bullish season. This is what has been observed in the past few periods of the bull run.
Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
In the bearish market, Mining has a somewhat negative impact on profits. But it is not the case that losses are incurred at all. It is assumed that if mining costs are high then mining companies and individual miners will stop mining. As a result, mining rates will increase and companies that don't stop mining will get more profits.Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
Yes but it is true that no matter how high the cost and how low the market sells mining will never stop completely.
Mining only becomes profitable if Bitcoin's price value is in a bullish season. This is what has been observed in the past few periods of the bull run.
Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
Therefore, if we are in a bear market, the situation in the market is too complicated, which is also where the volatility that happens in the movement of the market is too aggressive. The more it goes down or becomes a flat resistance only happens in its movement, the cost goes up but the profit goes down. In short, it is not becoming profitable at the moment due to this scenario in reality.
2022 is almost at the end, but there is a lot of research going on whether cryptocurrency mining will be profitable in 2023. However, many have discussed various positive and negative aspects, the following points are briefly highlighted, which can have a great impact on cryptocurrency mining.
Global Conflicts:
The war between Ukraine and Russia has created a global recession as well as various negative aspects that are largely responsible for cryptocurrency mining. Due to the war in Ukraine and Russia, global electricity, fuel oil prices have increased significantly, which has greatly hampered the profitability of mining.
Mining Costs:
Mining requires electricity, fuel and renewable energy.
If the cost of these energies increases globally, mining costs will increase much more than before in the coming years, resulting in huge losses for mining.Cryptocurrency mining will not be profitable in 2023 unless mining costs are brought down to a limit.
Global Conflicts:
The war between Ukraine and Russia has created a global recession as well as various negative aspects that are largely responsible for cryptocurrency mining. Due to the war in Ukraine and Russia, global electricity, fuel oil prices have increased significantly, which has greatly hampered the profitability of mining.
Mining Costs:
Mining requires electricity, fuel and renewable energy.
If the cost of these energies increases globally, mining costs will increase much more than before in the coming years, resulting in huge losses for mining.Cryptocurrency mining will not be profitable in 2023 unless mining costs are brought down to a limit.
There has to be loss and profit, both involved in one business. Yesterday I saw a post where someone wrote with a rig that has 110TH/s could generate 1 BTC in 2 years+ time. (I am not in mining, so I don't know if that statement is true.) But if this is the fact, then I don't think it is that much profitable nowadays.
The difficulty is increasing and the total hashrate of competing for a block is also increasing so I think that is just a projection probably some marginal error. If in 1 year's time, Asic company releases a new miner that has the double hash capacity and cheaper electrical consumption, that calculation is already in error because the hash rate will possibly be doubled and the variables used to calculate the profit will be obsolete.
Also, not to mention that you are competing with giant farms, who have much powerful rig than you. If they are unable to make profit to cover up their expenses, then this becomes obvious that people with personal mining farm are not doing that much well either.
This isn't a problem because you can join a mining pool that can compete with any giant farms out there.
And the competition becomes more and more hard as day passes by.
On the other hand, if you have cheap electricity supply, then I'll say go for it. Because the main concern in mining is energy consumption.
On the other hand, if you have cheap electricity supply, then I'll say go for it. Because the main concern in mining is energy consumption.
If they can find a cheaper electrical service provider then they are good to go. Or be able to tap the force of nature that provides free electrical supply like windmills, solar energy system then it will greatly boost the profit in the long run.
Here is an excerpt from the article in NiceHash about how profitable is mining in 2022, you can change the USD value to the current price of BTC and then calculate from it (this might be outdated though since we are now entering 2023) so I decided to include a link[1] of the possible trend of mining in 2023
Quote
Mining in 2022
A miner would earn 0.0004 BTC per day in the first 47 days of 2022. Based on the current price ($40,000) that is around $16 per day.
Conclusion
As we can see from the examples above, 2021 was the most profitable in terms of fiat currency. On average a miner earned approximately $30 per day while the second most profitable year for fiat earnings up to now is 2022 with $16 per day.
But looking at Bitcoin earnings, we can see that 2020 was the year that the miner would earn the most Bitcoin per day, an astonishing 0.0008 BTC. Yet the fiat earnings were low because the price of Bitcoin was low.
A miner would earn 0.0004 BTC per day in the first 47 days of 2022. Based on the current price ($40,000) that is around $16 per day.
Conclusion
As we can see from the examples above, 2021 was the most profitable in terms of fiat currency. On average a miner earned approximately $30 per day while the second most profitable year for fiat earnings up to now is 2022 with $16 per day.
But looking at Bitcoin earnings, we can see that 2020 was the year that the miner would earn the most Bitcoin per day, an astonishing 0.0008 BTC. Yet the fiat earnings were low because the price of Bitcoin was low.
[1] https://cryptominers.ae/will-crypto-mining-be-profitable-in-2023/
There has to be loss and profit, both involved in one business. Yesterday I saw a post where someone wrote with a rig that has 110TH/s could generate 1 BTC in 2 years+ time. (I am not in mining, so I don't know if that statement is true.) But if this is the fact, then I don't think it is that much profitable nowadays.
Also, not to mention that you are competing with giant farms, who have much powerful rig than you. If they are unable to make profit to cover up their expenses, then this becomes obvious that people with personal mining farm are not doing that much well either.
And the competition becomes more and more hard as day passes by.
On the other hand, if you have cheap electricity supply, then I'll say go for it. Because the main concern in mining is energy consumption.
Also, not to mention that you are competing with giant farms, who have much powerful rig than you. If they are unable to make profit to cover up their expenses, then this becomes obvious that people with personal mining farm are not doing that much well either.
And the competition becomes more and more hard as day passes by.
On the other hand, if you have cheap electricity supply, then I'll say go for it. Because the main concern in mining is energy consumption.
Hi guys I was reading news that for the first time Bitcoin mining has not been profitable for the big miners who run millions of dollars of machines and that sucks to them. Cause they have very big expenses. So I was saying that it means that this morning for low budget miners will be total loss and a lot of hard work.
In my opinion that Ethereum mining is also not profitable.
In my opinion that Ethereum mining is also not profitable.
You probably have an idea that once we use any mining rig, the number 1 thing we should think about is the cost that we can face after a month of doing it, such as the electricity bill which will surely increase every month, are you ready for it?
So why Ethereum Mining? as far as I know ETH is a bit biased at the moment mate, because there is a problem, just try to do your research. Although you will also spend a lot on this matter when you enter as a miner.
It is especially if you are looking to cash out during the next bull cycle.
At the time Mining of bitcoin is effected by market but not goes totally -ve profits and if you have solar energy then its free money ,
And you said for Ethereum there is no Eth mining network is converted to proof of stake ( staking ) , and now there are alot of altcoins but they are also dumped almost 90% of there last year price ,
So at the time we dont consider mining with paid electricity if you want to pay electricity dont do this instead buy coins and hold simple .
Mining is not ended in next bullrun we will see the profits skyrockets .
And you said for Ethereum there is no Eth mining network is converted to proof of stake ( staking ) , and now there are alot of altcoins but they are also dumped almost 90% of there last year price ,
So at the time we dont consider mining with paid electricity if you want to pay electricity dont do this instead buy coins and hold simple .
Mining is not ended in next bullrun we will see the profits skyrockets .
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