Hey everyone, I came across some news saying that Bitcoin mining has become unprofitable for major miners who have invested millions in equipment. That's pretty rough for them given their huge costs. I think this basically means it's gonna be a total loss for small-time miners too, who put in a lot of effort for little return. Personally, I also think Ethereum mining isn't really bringing in any profits either.
there is no eth mining. It was ended in Sept 2022.
What is a loser for a large miner with tons of overhead and loans does not affect a small scale commercial miner much.
I turn a profit just way smaller than in 2021.
We have no debt and the spaces we use have quite a bit of solar power.
I think the biggest expense for miners is electricity bills. If you have cheap electricity, then you will be successful miners. But in many European countries, contracts for the supply of electricity are terminated with miners. It is very important to find a place with cheap electricity and not be kicked out of there. And Ethereum forks are not profitable now.
It depends on one's electricity cost but yes profitability has dropped from the times when the Bitcoin price was moving towards the all-time high. This was bound to happen, as it has been every bear market
Looks like you have not be following. Ethereum mining is now history.
Of course, if we talk about miners tied to an outlet, we can talk about unprofitability in the current market, but it can also be considered as an investment, but large mining companies can be created on sites such as the electric power industry with excessive generation and be used, among other things, to compensate for reactive power and thereby, in addition to bitcoin mining, also provide stability as this energy node of the node and the system as a whole.
Do you sell mined BTC right away if you are talking about a profit slightly less than last year? All or part? Are you considering holding the mined bitcoin until the price goes up?
I apologize if I'm asking tactless questions.
Perhaps the unprofitability of production for large miners will affect the increase in the number of small ones, which will have a positive effect on decentralization.
It always come down to power cost. If you have cheap or even free electricity than it is worth it. If not then it is in many case not worth it. You can only for example use the heat to heat your house, if you energy is to expensive and then have a profit still, since you dont need to pay for heating.
For now, due to the Bitcoin price drop mining is not profitable but depends on what unit/model and your power cost.
This is just the same as before someone said Bitcoin mining is dead but after the block halving miners who stay mining are making more profit than those people who just invested recently to buy miners.
The best advantage for miners while the price of Bitcoin is low is you can buy units at a very low price. You can either hold the units to resell in the future because I'm sure these units after block halving will be more expensive or either start mining today if you have pretty cheap power and stay mining then hold and wait for block halving to resell and sell your Bitcoin to fill your pocket.
I don't sell every single coin after expenses.
I don't hodl every single coin after expenses.
Sometimes I hodl almost everything I can other times I sell almost everything I can.
BTW it can be a hard decision as to the ratio of hodl vs selling the profits after the expenses.
Since my power deal is good my hard choices are how fast to expand and how much to sink back into expansion of the mine.
Yes, electricity has become the hardest one for crypto mining, and that ETH went to PoS.
Even so, I have started to see much new stuff for ex Chia, there you have some low-power raspberry that can make runt like very low power.
We also have Kaspa, which has been proven to run the GPU cards on very low watts.
And this is like virtual mining NFT:s that are coming.
All in all, if you diversify on different types of mining you maybe could be okay
I think all of this should be discussed in the altcoin section since OP also specifically mentions Bitcoin mining. Regardless, the market will find equilibrium sooner or later so OP doesn't have to worry about it.
I've seen a lot of doomposting about Bitcoin mining (and how it will impact its network) since months ago with or less the same question. OP might want to search about it if he is worried about Bitcoin.
If we are not talking about a few asics for the house and garage, which perhaps no one will know about, but about a container of 100 asics, then there is a problem with the electricity supplier.
In Europe, miners are banned from doing business due to a shortage of electricity. If we talk about Russia or Kazakhstan, then there are questions about the safety of equipment.
What will be the cost of Bitcoin mining in 6 years in 2028? I think about $50,000 minimum. Is it better to buy bitcoin?
These are difficult time for miners, especially miners who have invested a lot into mining equipment running into millions of dollars. There is an increased cost for energy, an increase in demand as well, and dwindling supply. If some of these miners are not careful, they will be spending more especially on energy than getting value for what they have invested. How can miners be careful? by applying proper business risk management strategies which I believe that anyone has invested millions in mining must have taken time to understand the dangers in his investing in mining and how to control and manage situations well. The major question now is no longer about 2022, but the coming year 2023, will mining be profitable in 2023?
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 .
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.
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.
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.
This isn't a problem because you can join a mining pool that can compete with any giant farms out there.
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
[1] https://cryptominers.ae/will-crypto-mining-be-profitable-in-2023/
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.