Thinking about jumping into mining? The market's taken a hit, and bitcoin's pretty low right now, but miner prices have dropped too. Do you think starting mining with these cheaper prices could pay off in the long run? What are your thoughts?
Yes if you have the enough resources and cheap electricity cost. Mining is the best way to make profit on Bitcoin during bear or bull market if you can get all your mining rig in discounted price with cheap electricity cost.
I have a question to you since you are very knowledgeable on this field. I know miners is getting profit on processing transactions. Does the volume of transaction increase the profitability of the miners or miners just rely on the price fluctuations of Bitcoin to increase the profit for the income coming from mining rigs?
Miner prices have dropped dramatically, as you mentioned in your question. Cryptocurrencies are volatile in nature, but a bitcoin mining investment could be very profitable. Bitcoin mining has historically been known as a profitable investment for long-term investors, particularly those who invested during a bear market. It is also worth noting that investing during a bear market may result in a shorter payback period if a bull market follows. Finally, it is up to you as an investor to assess your risk tolerance and make a decision. To help you understand the space better, here is an article about the future of crypto mining that explains where it is headed: https://www.zionodes.com/blog/the-future-of-crypto-mining-is-crypto-mining-still-profitable
In a bear market in some countries, mining can really be attractive primarily because of the low cost (relatively low of course) and most importantly from the fact that Asic's are cheaper in the secondary market, for example, at a price of 7 cents per kWh, the cost of mining 1 BTC is ~ $11,000 for large mining centers.
In current market mining is just zero level profit cause Markets are too low and is non profitable. And I think with low budget miners, profit is negligible. And if you are a company than keep doing it cause when btc market will up than you will be in hot profits that is just non imaginable.
In 2017 we could mine 0.5 Btc Per month and if someone should hold these btc for a whole year than he could be in more profit than selling regularly in the market.
Are you not supposed to get BTC for mining in equivalent to BTC and not USDT?
Correct me if I am wrong, But isn't this how mining works? So any time you mine, the amount of BTC stays the same but the price of that BTC changes with market movement.
But if the Rig costs less now, then it is just clever to buy them now. And as everyone is saying, try to calculate the cost of electricity and will you make profit or loss.
the profit or loss will be calculated when you sell the coin. If you are accumulating and not selling you are simply advancing the money..
miners mainly tend to accumulate in these cases, and whoever has more strength to anticipate the next bull will certainly have a more important nest egg.
always if there will be a bull run
If you are living in Kuwait, sure you can have the luxury of mining BTC during the Bear Market but if you are living anywhere in the world where the mining electrical consumption is above the current price of BTC then better to buy Bitcoin in the market. Or if you have deep pocket for the mining maintenance and can hold until the price gets to new height then by all means you can mine at a lost until the market gets better and sell your accumulated Bitcoin.
You can check this electrical price charge map in mining 1 Bitcoin.
Click to enlarge
edit: source of the graphical representation and explanation:
https://www.visualcapitalist.com/cp/the-cost-of-mining-bitcoin-in-198-different-countries/#:~:text=It%20takes%20an%20estimated%201%2C449,costly%20venture%20to%20get%20into.
it is a cool chart but is really not accurate at all.
says a coin cost 21000 to mine in the usa.
power rates in the USA are as low as 2 cents and as high as 45 cents.
I am 14 cents and the heat has real value for me so for six months a year may rate is 10 cents.
this is in my house not my commercial mine.
I have 29 watt gear.
Beyond that if you read the fine print it's 9 month old data.
So difficulty is way higher then it was back then.
When you see large countries with electric rates that vary a lot lumped all together you know it's not accurate.
And without knowing if they included cooling, storage or anything else and the fact that they are using a miner that was released in January 2021 it's really not even worth looking at.
-Dave
We have total 300 Cards RX 580. But its hard to mine now a days. If some one have plan let us know what to mine ? Thanks in Advance. We are now trading our Mined Crypto in Future Market. So if some one have good Future Trading Signals Provider then also share over here..
In bear market some issues should affect Mining, electricity, oil and gas. If you are a citizen of any country like Canada, Saudi Arabia, Iran, Iraq, Nigeria, Russia, etc. then oil should not be a problem for you.
Moreover, mining in this down market will bring less profit. However, if you are located in an electricity rich country then the mining cost will be less for you. In this case you will not have any problem to get profit despite the down market.
Mining is no longer as rewarding as it used to be way back and even the current bear market has affected miners' DCA value for the mining rewards so mining revenue has greatly decreased in value lately. But all together, some new miners who just got in with new mining equipment and cheaper electricity may still fine it attractive and worth pushing for since the difficult moment will enhance the experience and building skills and patience in them to wait and keep holding their rewards for a better day.
With the recent rise in commodity prices, including the rise of fuel prices, it naturally say that mining will not be profitable at this time. Because of the high cost of the equipment required for mining and the rise in electricity costs will certainly not be profitable. According to 2019 report by the Congressional Research Service, the power we get for one ASIC can use the same amount of power as half a million PlayStation 3 devices. As a result, the cost will naturally increase manifold. As the difficulty and complexity of Bitcoin mining increases at the same time need more computing power. When Bitcoin is bullish, it becomes very difficult to take profits from it. In that case, the current price of Bitcoin is about 75 percent lower than the peak value, so how is it possible to continue mining operations in a bearish market? I think no one wants to take such a big risk.
https://www.bankrate.com/investing/what-is-bitcoin-mining/
500,000 play station 3 use the same as 1 asic device?
I call bull shit.
In 2019 a s19 burned 72 kwatts a day.
that is 72000 watts a day.
If 500,000 play stations run just one hour burning just one watt that is 500kwatts a day vs 72 kwatts.
the reality is a play station 3 likely runs 2-3 hours so that is 1,500 kwatts a day if they only use 1 watt.
https://www.quora.com/How-much-electricity-does-a-PS3-use-per-hour this says they use 70-170
so 100 x 1500= 150000 vs 72
a lie factor of over 2000 to 1.
so do i get to punish the false info nope 👎.
I can clearly point the lie out. and I did.
It depends entirely on your electricity cost, if it's high then I won't advice you to embark on Bitcoin mining, Asic miners takes a lot of power compare to 3-5 graphic cards but since BTC mining is the only profitable coin to mine right now do some calculation on your electricity cost.
Secondly, there is no point mining right now if you aren't ready to hold your BTC, many miners are accumulating BTC through mining and I believe that this is the perfect plan.
Perchance it could be the right time or the wrong time as the case may be, as it's potent BTC price can rise so high from the current price it is or it could depreciate the more. Business is all about risk and calculated risk is all there is to making profit. Looking at the cost of providing and maintaining the equipments needed to mining BTC right now such as power cost, etc, and relative to the value of the bitcoin perhaps with your location you might not make a good profitable sum except you're mining with a future mindset (long-term profit) on bitcoin price as it would surely rise with time,
Of course, in a bear market situation it is a little difficult for miners to coordinate about this, a bear market situation forces them to be between 50% profit and 50% loss, but if the power and costs at your place are low we can advise you to start/continue mining, but the opposite will happen if the cost of electricity in your area is high, it is not recommended to mine in a bear market.
It all depends on the multiplication of the cost of electricity, but if you are not a Bitcoin depositor it is not recommended to mine in a Bear Market state there is no point in doing so, for those who mine and store their Assets (Bitcoins) this is the right time for them, and if in calculation with lower electricity costs, this is a big advantage for them. (I am one of them all )
If I have had best Bitcoin mining equipment than I will just mine and mine and than I Will not sell and In this way I will sold when 1 Bitcoin will be at almost 500k dollars. I wish I have had such money and also mining machines and that will be super amazing for me.