Wednesday, June 29, 2022

How Much Money Does Crypto Mining Make

Varying Fiat Values And Crypto Values

Crypto Mining Setup First Month Profits! How much did I make?

The term profitability is relative. Of course, the value of BTC can fluctuate wildly. However, its also important to recognize the cost equivalents in your local fiat currency. In many instances, high inflation of fiat currencies might mean that you are able to reach relative profitability sooner. Then, there are additional, complicated questions to ask yourself. For instance, do you plan on using BTC mining rewards immediately to purchase things? Do you HODL crypto in hopes of higher values later on? Do you want to immediately convert back to fiat?

Mining And Bitcoin Circulation

In addition to lining the pockets of miners and supporting the Bitcoin ecosystem, mining serves another vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically “minting” currency. For example, as of September 2021, there were around 18.82 million bitcoins in circulation, out of an ultimate total of 21 million.

Aside from the coins minted via the genesis block , every single one of those bitcoins came into being because of miners. In the absence of miners, Bitcoin as a network would still exist and be usable, but there would never be any additional bitcoin. However, because the rate of bitcoin “mined” is reduced over time, the final bitcoin won’t be circulated until around the year 2140. This does not mean that transactions will cease to be verified. Miners will continue to verify transactions and will be paid in fees for doing so in order to keep the integrity of Bitcoin’s network.

Aside from the short-term Bitcoin payoff, being a coin miner can give you “voting” power when changes are proposed in the Bitcoin network protocol. This is known as a BIP . In other words, miners have some degree of influence on the decision-making process on such matters as;forking.

Is Bitcoin Mining Profitable

Whether Bitcoin mining is profitable depends on the situation, but for most people the answer will be no.

The cost of the electricity consumed, and constantly rising total network hashrates, ensure that the average person will lose money trying to mine Bitcoin.

To mine Bitcoin profitably, you typically need to have enough capital to set up a large low-cost mining operation that can benefit from economies of scale, and have access to cheap wholesale electricity.

And even then, mining profitability depends on Bitcoin prices holding up, and staying up to date with the latest equipment.

Because of the large startup costs, and the fact that Bitcoin mining profitability is dependent on Bitcoin prices rising in the future, it will almost always be more economical for the average person to just buy Bitcoin instead of trying to mine it.

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How Do You Build A Crypto Mining Rig

Building a crypto mining rig is similar to putting together a computer. For example, you’ll need to install basic computing hardware like a motherboard, ensure the rig receives the proper power supply, and prevent overheating with a cooling system. Perhaps the most important aspect of a crypto mining rig is the GPU card. These video cards essentially determine how powerful your mining rig will be.

What Goes Into A Rig

How Much Does A Crypto Mining Rig Make : Earn Free ...

There are three basic categories for mining rigs, CPU, GPU, and ASIC . Just like everything else, the biggest factor in choosing the right rig is the currency youre trying to mine. Once upon a time, you could mine Bitcoin with just the CPU in your desktop and a twinkle in your eye. Now very few currencies can be effectively mined with such menial processing power, and if you want to mine Bitcoin specifically, youre going to need an impressive purpose-built machine.

Mining bitcoins;by;Gastev;is licensed under;CC BY 2.0

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It Took 4 Months To Be Profitable

Almost four months to the day, my Ethereum mining rig became profitable. Ill caveat this by saying that Im still holding everything that the rig has mined in Ethereum.

I have not converted any ETH yet.

Thats not to say I wont convert some ETH to BTC or cash out a portion at some point. I just that havent touched the mined ETH as of now.

When I started mining Ethereum, I didnt expect to reach break-even for several more months.

The crypto bull market accelerated the rigs profitability.

When I wrote an update on the rig two months back, it was making about $7 per day. Now, the rig makes closer to $13 per day more often than not.

NOTE the market can turn at any moment.

I like to say that as bitcoin moves, so does the market.Bitcoin remains the worlds largest cryptocurrency by market cap.

Bitcoins performance and ability to attract institutional investment has provided a massive tailwind for Ethereum and other cryptocurrencies.

My mining rig will likely remain in the green from this point forward with the exception of a very drastic downturn in the market.

So yes, Ethereum mining is profitable in 2021.

But, how profitable is it?

How much money can you really make mining Ethereum?

Heres a screenshot of the Ethereum mining rig when its making roughly $10 per day. Because $13+ per day is such a new trend with the markets recent upswing, this is better example of how much it earns.

Im part of an Ethereum mining pool within Nanopool.

There is a small fee taken.

What Is Bitcoin Mining

Bitcoin mining is the process by which new bitcoins are entered into circulation; it is also the way that new transactions are confirmed by the network and a critical component of the maintenance and development of the blockchain ledger. “Mining” is performed using sophisticated hardware that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of bitcoins and the process begins again.

Cryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types;see mining as pennies from heaven, like California gold prospectors in 1849. And if you are technologically inclined, why not do it?

However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin .

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Mistake Four I Was Greedy And Careless

Bitcoin hard forks were happening all the time. Every month there was a new fork Bitcoin Cash, Bitcoin Gold, etc. And every time I wanted to get new coins. I was curious.

When Bitcoin Gold was launched, there was a lot of hype around it. The launch price was $300, if I remember correctly. Everyone was looking forward to it, including myself. I wanted to see how many BTG coins I could get. I just needed to enter the private key to my wallet on the official Bitcoin Gold page. I entered the key. And I saw how much I would get.

Now I realize that I was such a fool, but back then I had no clue. As you might have guessed, I didnt see bitcoins on this wallet ever again. Neither BTG, nor BTC. I was smart enough to use the empty wallet on the BTG website, but later I got a payment on it. And of course, I didnt see it.

How much did I lose? A whole lot, much more than 1 BTC. I dont remember exactly. I just try not to think about it.

Should You Mine Cryptocurrency

How much I earn mining crypto

If you have a PC with a modern GPU, you should consider using it to make money while you arent using it yourself. Its easier than you might think!

ASIC mining is not for everyone. Unless you live in China, your electricity is probably too expensive for you to consider mining at a large scale.;

But dont lose hope, there might be another way to profit off of your newfound mining knowledge.

  • Proof-of-stake. Ethereum 2.0 promises to eliminate the need for expensive mining equipment. Instead of a race between the miners to secure the data, miners will stake Ether in order for the right to secure a portion of the transactions.;
  • Rent mining power. NiceHash is 1 of the largest mining pools in the world. They offer a service to rent mining power produced by machines in countries with low electricity costs. This way you can mine without ever getting technical.
  • Invest in the industry. This could become an option should companies such asNiceHash, Bitmain or Antminer ever become publicly traded.
  • The cryptocurrency industry is still young, and mining has a long way to go before reaching maturation. Whether or not you should pursue an investment related to mining is up to your risk tolerance. Nearly any industry this new and underdeveloped is likely to contain a lot of uncertainty, but with uncertainty comes the potential for profit. Just be careful.;

    Is mining profitable?Whats the best cryptocurrency to mine?

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    Bitcoin Is Infamous For Wasting Enough Electricity To Add 40 Million Tons Of Carbon Dioxide To The Atmosphere A Yearbut Now A Growing Cadre Of Us Miners Are Developing Green And Lucrative New Strategies Worth A Fortune All Their Own

    by Chris Helman

    Bill Spence and Greg Beard on a Russellton, Pennsylvania, coal waste pile left by a mine that powered 20th-century Pittsburgh steelmakers. Theyre burning this polluting gob to mine bitcoin.

    Growing up in rural western Pennsylvania in the early 1970s, Bill Spence played with his pals on piles of coal waste, oblivious to the toxic heavy metals right under his feet. After working as an oil industry engineer out west, he returned home in the 1990s and found the pilesknown as gob, for garbage of bituminousstill pockmarking the landscape. The present worry is that these unlined pits are leaching deadly carcinogens into the groundwateror, worse, that they will catch fire and start polluting the air, too. ;

    So Spence, now 63, set out on a mission to whittle down the piles, restore the landand make money doing it. In 2017, he bought control of the Scrubgrass Generating power plant in Venango County, north of Pittsburgh, which was specially designed to combust gob. But gob isnt a very good fuel, and the plant was barely viable. Later that year, after being diagnosed with pancreatic failure and kidney cancer , he stepped back from the business. Bored, he started dabbling in cryptocurrencies and soon had a eureka moment: He could make the Scrubgrass numbers work by turning gob into bitcoin.;

    Courtesy of Riot Bklockchain

    TERAWATT TERROR;

    What really counts as green energy? Wind and solar power, for sure. Other sources can be a tougher call.;

    DAILY COVER STORIES

    Crypto Solicitation Removal And Misleading Users About Profiting

    Posted: 05-Aug-2021 | 11:23AM ·2 Replies·Permalink

    Just noticed the new ‘Turn your PC’s idle time into cash.’ green bar on top of my paid-for Norton 360.

    Also noticed a string of replies about this on the Community – now with ‘comments disabled’ – so I cannot comment there – I will here.Most of them were about ‘idle time’ – and Norton’s implication that you can profit by using it…but NOT disclosing the catch – increased operating costs and wear on GPU!

    WHY is there not an honest FAQ about how much this replacing idle time will cost the Norton Crypto user???; It is NOT FREE.

    I speak from experience – having;volunteered my ‘free / idle computer time’;for BOINC; and World Community Grid.I have volunteered my computer free time;aiding research for fighting the;Covid-19 pandemic for 3 years:180 days:15 hours as of now.My electric bill DOES reflect my not re-imbursed;charity volunteering of my computer time.; At least $30 more per month.

    My electric bill is significantly higher doing this.Consider – running an idle computer draws a set minimal constant amount of energy. – idle current with cpu at 0 to 3% doing;background stuff.. less than 20 watts for me.Running BOINC / or Crypto-mininig;raises your cpu usage to 100% and your GPU at 100%.; This will increase your current consumption on your PC to maximum.;;

    Crypto mining is not likely to have as much idle between projects as my volunteer work did – so likely a lot more electricity costs.

    My issues:;

    Norton:

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    Hardware And Electricity Costs

    Hardware will be your only upfront investment that is needed. Afterward, paying the electric bill for the miners will be the only repetitive cost. All the costs will be looked at in terms of USD.

    We will look into two different paths for starting your cryptocurrency mining journey, one will be with AMD and then NVIDIA.

    How Does Proof Of Stake Differ From Pow

    How Much Does A Crypto Mining Rig Make : Earn Free ...

    PoS is a consensus mechanism that randomly assigns the node that will mine or validate block transactions according to how many coins that node holds. The more tokens held in a wallet, the more mining power is effectively granted to it. While PoS is far less resource-intensive, it has several other flaws including a greater chance of a 51% attack in smaller altcoins and incentives to hoard tokens and not use them.

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    What Do You Mean ‘the Right Answer To A Numeric Problem’

    The good news: No advanced math or computation is really involved. You may have heard that miners are solving difficult mathematical problemsthat’s true but not because the math itself is hard. What they’re actually;doing is trying to be;the first miner to come up with a 64-digit hexadecimal number ;that is less than or equal to the target hash. It’s basically guesswork.

    The bad news: It’s a matter of guesswork or randomness, but with the total number of possible guesses for each of these problems being on the order of trillions, it’s incredibly arduous work. And the number of possible solutions only increases the more miners that join the mining network . In order to solve a problem first, miners need a lot of computing power. To mine successfully, you need to have a high “hash rate,” which is measured in terms gigahashes per second and terahashes per second .

    If you want to estimate how much bitcoin you could mine with your mining rig’s hash rate, the site Cryptocompare offers a helpful calculator. Other web resources offer similar tools.

    Bitcoins Electricity Usage Compared With Countries

    Estimated electricity consumption . Shaded region represents the range of possible values.

    That usage, which is close to half-a-percent of all the electricity consumed in the world, has increased about tenfold in just the past five years.

    The Bitcoin network uses about the same amount of electricity as Washington State does yearly

    more than a third of what residential cooling in the United States uses up

    and more than seven times as much electricity as all of Googles global operations.

    So why is it so energy intensive?

    For a long time, money has been thought of as something you can hold in your hand say, a dollar bill.

    Currencies like these seem like such a simple, brilliant idea. A government prints some paper and guarantees its value. Then we swap it amongst ourselves for cars, candy bars and tube socks. We can give it to whomever we want, or even destroy it.

    On the internet, things can get more complicated.

    So a group of free thinkers or anarchists, depending on whom you ask started to wonder: What if there was a way to remove controls like these?

    In 2008, an unknown person or persons using the name Satoshi Nakamoto published a proposal to create a cash-like electronic payment system that would do exactly that: Cut out the middlemen. Thats the origin of Bitcoin.

    This concept took a while to catch on.

    It starts with a transaction

    A global guessing game begins

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    Profitability Before And After Asic

    Old-timers mining bitcoins using just their personal computers were able to make a profit for several reasons. First, these miners already owned their systems, so equipment costs were effectively nil. They could change the settings on their computers to run more efficiently with less stress. Second, these were the days before professional Bitcoin mining centers with massive computing power entered the game. Early miners only had to compete with other individual miners on home computer systems. The competition was on even footing. Even when electricity costs varied based on geographic region, the difference was not enough to deter individuals from mining.

    After ASICs came into play, the game changed. Individuals were now competing against powerful mining rigs that had more computing power. Mining profits were getting chipped away by expenses like purchasing new computing equipment, paying higher energy costs for running the new equipment, and the continued difficulty of mining.

    A Beginner’s Guide To Calculating Crypto Mining Profitability

    Basic Crypto Mining Profitability Calculator – How Much Money Can I Make?

    Mining cryptocurrency is like any other business: To be successful, you have to make more than you spend. That means that the money you make from selling mined coins has to be greater than the cost of running your operation and the amount that you spend on buying hardware.

    While it sounds simple, there’s a lot of complexity involved. You have to factor in the cost of your mining power, the cost of electricity, your hash rate, the difficulty level of mining, and more. These variables are constantly changing, not static. If you buy mining hardware operating under the assumption that the difficulty level of mining remains constant, your profitable operation today could be in the red in a year if mining difficulty accelerates. If you’re mining Ravencoin, and the price per coin drops in half, you’ll similarly be in a tight spot.

    If you’re completely new to mining, calculators like WhatToMine and CoinWarz allow you to plug in your hash rate and electricity costs to estimate your profit over a period of time. The problem is that these calculators make approximations based on fixed assumptions around the difficulty level and price of a coin today, when, in reality, these factors will constantly change over time. The only way to run a profitable mining operation is to understand what’s going on under the hood.

    Here’s a rough equation for calculating your mining profitability, although the exact formula will vary from coin to coin:

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