Is Bitcoin Mining Profitable
This is definitely a though question to answer, as it largely depends on 3 factors- the Bitcoin price, the electricity price and the mining hardware price.
With the current Bitcoin price, the Bitcoin mining is not very profitable. However, the cryptocurrency market fluctuates as every other market, and in this article I wrote why I think you should mine Bitcoin in 2019.
If you don’t have time or interest in reading that one, I’ll simplify it for you- the Bitcoin price had many ups and downs in the past, for example dropping from $1200 to $100 and then eventually hitting a $20000 price before falling down to it’s current price of $3600.
So, even though selling Bitcoin at this moment may not be very profitable, it may be very profitable in the future, if you mine now and sell later when the price increases. Just imagine how rich are now the people who mined even when Bitcoin price was $100, then sold at the very top of $20000.
A huge factor in Bitcoin and cryptocurrency mining. Since Bitcoin mining is electricity intensive, it’s clear that the electricity price itself can make a huge difference alone.
If for some reason you don’t have to pay for electricity(alternative energy, social program or some other way of not having to pay for it), then Bitcoin mining is very profitable for you. If on the other hand, you have a high electricity cost, then BItcoin mining is not very profitable for you, and may even be unprofitable.
Of course, the Bitcoin price that we talked about can make a huge difference here as well, as if you see Bitcoin as an investment option, and hold your Bitcoin to sell it in the future- then you can wait until you’re profitable with your electricity costs included.
Here’s a quick look at profitability of some of the best GPU for Bitcoin mining, with a varying electricity cost:
Best GPU profitability with a current Bitcoin price of $3611(zero electricity cost):
- Nvidia GeForce GTX 1070– $0.51
- AMD Radeon RX580– $0.45
- Nvidia GeForce GTX 1060– $0.31
- AMD Radeon RX Vega– $0.98
- Nvidia GTX 1080 Ti– $0.77
Best GPU profitability with a current Bitcoin price of $3611($0.1/kWh):
- Nvidia GeForce GTX 1070– $0.20
- AMD Radeon RX580– $0.17
- Nvidia GeForce GTX 1060– $0.10
- AMD Radeon RX Vega– $0.48
- Nvidia GTX 1080 Ti– $0.32
I know the numbers above does not look promising, but that’s the current situation. I encourage you to think twice though, and do your math on what will happen if the crypto market goes up.
I know because I already saw it during the last winter(2018), when I was making $10-$12 per day mining with just 3 graphic cards!
And I still mine, buying the coins that I think will go up the most, waiting for the next great chance to sell them!
This one should be fairly clear and intuitive to understand- the less you pay for your mining hardware, the more profitable your mining operation is going to be. My advice is to never buy new unless you get some crazy deal, and to buy used stuff that still has a valid warranty. This way you get the hardware for half the price, while still being secured(with a warranty that you can use in case your equipment dies).
Another thing that you should consider is the power usage- the less power your GPU spends and the more Bitcoin it makes- the better.
How to Earn From Bitcoin Mining
Same as in any other industry!
You need to be hard working and outsmart your competition! Use the top mining tools and buy the best and cheapest hardware that you can.
I also encourage you to think out of the box. Right now the market is worth around $120 billion, and not so long ago it hit a spot of around $800 billion. This is definitely an opportunity for innovations and trend following, as well trend creation. There’s not only money in mining itself, but also in mining hardware resell, mining software creation and mining education craft among others. Not to mention crypto trading if that’s what suits your skills and interests.