Topic: Now is definitely an excellent time for personal mining (Read 611 times)

It is a great time if you already have the miners but buying them now the risk is much higher since you are going to be paying a large premium to get your hands on the equipment unless you want to order and wit 4-6 months for a reduced price and even then the price is still scalped by a large amount.

as bitcoin mining increases in various countries so that GPU prices also soar.
I'm happy because I bought the bitcoin mining tool before the price went up so I don't have to panic right now.
At this time miners have to spend a lot of money to buy equipment to mine bitcoin, but the costs incurred are definitely proportional to the benefits that will be obtained from mining bitcoin.

Your payment increases, in the case of the coins that you're mining only when the difficulty decreases or the price increases. It doesn't matter how many people left, because the profitability is not a function of the number of people that is currently mining. It is only affected by the two factors as mentioned.

Your network doesn't direct any workload to the user, that is not how any crypto work by directing workload. You will never be more profitable than the larger farms with hundreds of thousands of dollars at their disposal and cheap electrical fees.

The difficulty may not change and I think it does not change for sure however, there is one major factor that can profit us while mining in the current times and that's increased shared by our miners.

I am currently mining RVN on my rigs and I have seen great amount of change in the pattern of payouts. When the prices changed drastically after the miners of RVN left for the ETH mining protocol, network directs most of the "job" to those who are still mining. Thus, increased workload on the miners and increased reward after the successful execution of transaction confirmation.

Not sure how true is this, but from my observation my payment per hour always increases whenever the workers are decreased!

Actually since I mine and do not buy and hodl the people that compare the two are always wrong.

They are not comparable other that they involve crypto coins.

Best example is this

put $1,000,000 usd in the bank and collect interest = buy and hold.
put $1,000,000 usd into a fleet of limos and open a wedding + party service.
they both involve 1,000,000 usd that is all they have in common.

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Same as buying $1,000,000 in btc and holding It.
or buying a $1,000,000 mining farm.
they both involve 1,000,000 usd to start up that is all they have in common.



Now you could compare

putting 1,000,000 usd in the bank and collecting interest on it
to buying 1,000,000 usd worth of btc  and getting interest on it from an exchange

anyone actually running the numbers to check these claims?

Mining allows you to make some bitcoins yourself.

From the start since 2016 that is the time that we have an excellent timing for mining especially bitcoins because if we mine 1 BTC that year with a value of 3600$ in 2016 we can wait until it grows more than 500% of profit with the value of bitcoin today. It's a good idea for long-term investors and traders when it comes to Crypto Mining. GPU also is increased today due to the Crypto Mining.

This is incorrect. Example: a S19 Bitcoin miner costs currently $10,000 and performs with 100THash/sec and pulls about 3200 Watt (a bit more than advertised)
Let's say you would invest the $10K today in BTC , that would give you 0.2 BTC which would appreciate in price over time

After deducting the electricity your miner would produce only 0.00052684 per day

let's assume the difficulty would stay the same (which is not realistic) you would need to mine for 379 days until you break even and make your 0.2 BTC back.
In the meantime you have to deal with cooling, noise levels and maintenance

And this is the best case scenario with one of the best performing BTC miners. If you have a lower performing model, it will take exponentially longer to make your money back - if ever.
Plus realistically: with increasing price and upcoming better performing chips the network hash rate will go up and your rewards will be reduced over time.

So no, if it was for the pure investment purpose you are better off buying the currency directly.

Miners want to support the network, helping to keep a stable decentralization and in return they are getting some rewards. Although it is a business, it is a different philosophy than direct investments.

It is rare to hear this nowadays, almost all the new altcoins have become centralized relying on POS because they want to make a quick profit for their developers and thus distribute the coins quickly with low fees.
I used to remember in the year that the limited and the possibility of mining using inexpensive devices used to give coins a value. Today, we see that coins containing trillions or more of the supply are popular and make profits.
Mining altcoins is often not quite as profitable as mining Bitcoin.

Thanks god you're wrong ! They are so many possibilities for being profitable, even with medium cost of electricity

Not true at all. I have ASICs hosted at locations paying .059/kw and they have been very profitable and will continue to be. I dont know why people make blanket statements about profitability that have no data or anything else to say. What algo, what equipment and over what timeframe?  I have been mining for almost 5 years now and I have mined way more crypto and converted into BTC or ETH than I ever would have had if I just bought the same amount of BTC with fiat that I paid for the ASICs or GPUs. At any point I could sell my equipment and buy even more crypto as well.  Saying its not profitable with no information beyond that is lazy or illinformed.

Unless you get electricity for free it's not profitable
J

Everyone's situation is different. Anyone who makes a blanket statement saying "x is more profitable than x" is just speculation based on their current situation. It can be either for a variety of people. If you have free electricity and/or access to a seller of ASICs who could give you a fair deal you easily can make a killing. If you don't and end up paying a premium for everything then it makes more sense to just buy and hold. At the end of the day, each individual should do the cost and risk analysis for what situation works best for them.

In some rare cases, mining is a lot more profitable than HODLing, remember that mining generates passive bitcoin, hodling does not (unless you are farming it in some stupid shit), so if you can buy 1 BTC worth gears today, and end up with say 1.5BTC after 12 months, hell ya that beats "hodl", but you need a streak of luck, cheap gear, good quality gear, cheap power rate and great timing for entry.

The sad truth is that most newbies buy the wrong gear for the wrong price at the worst time possible.

I think holding is better then mining and facing different  types of problems and pay a charge every month.  But i dont understand why people are afyer Mining.

If you have a low fee of electricity cost or almost free of the electricity fee, you can start personal mining at your home because maybe you can earn some nice rewards from bitcoin mining. But if you still pay a high electricity cost, bitcoin mining will not be profitable. Even if the difficulty is reduced a lot, you still need to think about the electricity cost. It will be different if you can have renewable electricity from solar, water, wind or else you do not need to pay the fee to your government. But you can start mining if you want so you can know how many rewards you can earn. You need to know that you need to have the newest mining hardware that will cost you more expensive if you want to get a big reward. You can calculate the BEP later.

I think its easier and possibly cheaper to buy cryptocurrencies rather than mine them. Personal mining era has passed.

It is not. Think about it.

Mining is an entire industry by now and the barrier of entry has been raised again and again. China explicitly banning certain Bitcoin farms might have some impact on the difficulty in the future but it has certainly affected the prices right now. Those miners have access to the lowest electrical rates and ASICs, as they're doing it in bulk. Do you really think an average person can mine at a lower cost at them? Most likely not.

Any difficulty drop is almost always shortlived and the subsequent difficulty change will result in a significant change in difficulty as well. It is possible for people to be mining for a profit (probably 1-2%), if difficulty drops further and price increases. Reaching ROI can take months and most revenue are not sustainable. I can guarantee you that it is faster (and safer) for people to put $4K in Bitcoin than to purchase an ASIC, wait 7 months for ROI, if that is even happening and potentially risking having to stash it away somewhere after the difficulty starts increasing again.

There are a ton of things that can and will go wrong in the process. Investing in mining equipment without taking into account further fluctuation in profitability is just stupid.

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Also, difficulty hasn't changed. It is less profitable to mine today than 6 days ago.

It looks like you've forgotten about the issues that might come with mining investments; It's not always going to be a smooth experience...

e.g.

• Dealing with faulty boards, PSU's and etc... > Shipping them for repair ^{[depending on the situation, it could lead to additional costs]} > Less hash rate.

I haven't checked if that's indeed the case, but I don't think it'll last forever...