BTC mining costs and profit

AndrewChan

Contributor
It's no secret that with the current capacity of the Bitcoin network, the cost of BTC for breakeven mining is now $ 7,300.
I think it's time to turn the market
 
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pepeg

Contributor
I have to admit that cryptocurrency mining completely confuses me. I don't even understand the term "mining" if there's no physical action here, and everything is digital. Apparently, after reading a little about it, there are many pieces of data that really make sense.

Featured: Is Crypto Mining Worth It? | AllStocks Network

What do you think about crypto mining? Do you think it's worth it for you? At which cost?
 

Old Man Crypto

Expert chainblocker
I have to admit that cryptocurrency mining completely confuses me. I don't even understand the term "mining" if there's no physical action here, and everything is digital. Apparently, after reading a little about it, there are many pieces of data that really make sense.

Featured: Is Crypto Mining Worth It? | AllStocks Network

What do you think about crypto mining? Do you think it's worth it for you? At which cost?
Depends on your perspective. It’s worth it to anyone who mines crypto and can sell it for more than the cost of the mined coin. That’s the easy part of the equations.

Is it worth it for the average crypto investor? It’s one factor in determining the price of the trades asset, but many cryptos are either cheap to mine or aren’t mined at all. So it becomes irrelevant.

To society as a whole, it will become relevant from the environmental standpoint unless addressed somehow. But evaluations need to consider that the current banking system uses power and resources. We aren’t comparing bitcoin’s electricity use to zero. Physical money needs resources, power and personnel to create. Digital money requires massive banking computer resources. So crypto’s power requirements are offset by the reduction it provides in those other systems.

As a general political answer, bitcoin mining is worth it if it keeps the system decentralized and distributed as failsafe and tamper proof. But if mining becomes dominated by only a few players concentrated in a few geographic areas, then it’s a moot point because tampering and failure then become just as possible as the current banking system it hopes to replace.

Is crypto mining worth it? Ask us again in 5 years, we’ll know by then. Assuming this Old Man is still alive. ;)
 

Vla

Contributor
Depends on your perspective. It’s worth it to anyone who mines crypto and can sell it for more than the cost of the mined coin. That’s the easy part of the equations.

Is it worth it for the average crypto investor? It’s one factor in determining the price of the trades asset, but many cryptos are either cheap to mine or aren’t mined at all. So it becomes irrelevant.

To society as a whole, it will become relevant from the environmental standpoint unless addressed somehow. But evaluations need to consider that the current banking system uses power and resources. We aren’t comparing bitcoin’s electricity use to zero. Physical money needs resources, power and personnel to create. Digital money requires massive banking computer resources. So crypto’s power requirements are offset by the reduction it provides in those other systems.

As a general political answer, bitcoin mining is worth it if it keeps the system decentralized and distributed as failsafe and tamper proof. But if mining becomes dominated by only a few players concentrated in a few geographic areas, then it’s a moot point because tampering and failure then become just as possible as the current banking system it hopes to replace.

Is crypto mining worth it? Ask us again in 5 years, we’ll know by then. Assuming this Old Man is still alive. ;)
Depends on your perspective. It’s worth it to anyone who mines crypto and can sell it for more than the cost of the mined coin. That’s the easy part of the equations.

Is it worth it for the average crypto investor? It’s one factor in determining the price of the trades asset, but many cryptos are either cheap to mine or aren’t mined at all. So it becomes irrelevant.

To society as a whole, it will become relevant from the environmental standpoint unless addressed somehow. But evaluations need to consider that the current banking system uses power and resources. We aren’t comparing bitcoin’s electricity use to zero. Physical money needs resources, power and personnel to create. Digital money requires massive banking computer resources. So crypto’s power requirements are offset by the reduction it provides in those other systems.

As a general political answer, bitcoin mining is worth it if it keeps the system decentralized and distributed as failsafe and tamper proof. But if mining becomes dominated by only a few players concentrated in a few geographic areas, then it’s a moot point because tampering and failure then become just as possible as the current banking system it hopes to replace.

Is crypto mining worth it? Ask us again in 5 years, we’ll know by then. Assuming this Old Man is still alive. ;)
I see the question about mining almost every day and everyone says that it is not profitable because electricity costs more than you can get from mining, but your answer is complete and I fully agree with your opinion
 

CryptoNow

Contributor
I see the question about mining almost every day and everyone says that it is not profitable because electricity costs more than you can get from mining, but your answer is complete and I fully agree with your opinion
Yep, this Old Man knows a lot. I also like to read his comprehensive answers.
 

CryptoTC

Crypto Fat Cat
Staff member
I admit I’m being lazy, but does anyone know the current estimated cost to mine one bitcoin?

Or put another way, what market price does bitcoin need to exceed for the miners to remain profitable at this time?
 

The CC Forums

Admin
Staff member
I admit I’m being lazy, but does anyone know the current estimated cost to mine one bitcoin?

Or put another way, what market price does bitcoin need to exceed for the miners to remain profitable at this time?
Here you go. Not straightforward at all.

This is several months old, so things may be different now.

 

Old Man Crypto

Expert chainblocker
Here you go. Not straightforward at all.

This is several months old, so things may be different now.

Based on that chart, at today’s price of $5k, it looks to be profitable in several countries.

If I were setting up shop, and I’m not, I’d seriously look at the countries with the cheapest resources but then also make sure they have crypto friendly governments and regulations. It just takes a few rules changes and a jump in the price of electricity to tip the scale back into losing money.

A surcharge or tax on electricity used for bitcoin mining would be easy to get passed by most any developing countries’ governments just for the revenue bump.

Of course, if we get another run back to $20k or more, then never mind. ;)

And is it really under $600 to mine in Venezuela? With all the turmoil and inflation there? Is that due to the oil rich resources keeping power prices cheap, because you still have to buy and maintain all the hardware. Under $600. Wow! Too bad it sucks to live there. That’s a 900% profit today.

I’d bet Bitmain would do it but cooling those monster units would be a bear near the equator, and the government instability and all is also a deterrent.
 

Steem Experts

Contributor
Here are the reasons by buy bitcoin worldwide which are exactly saying:
  • With hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly.
  • The current fiat price of Bitcoin; critical for calculating profitability .
  • Difficulty Spikes, Price Crashes, Equipment Failures, Power Cuts, Shipping Delays & More!
 

Michael Kaye

Contributor
Huumm!! Could be either yes or no!
Actually, comparing to last year,2018, the situation has changed drastically. In 2019, mining competition is much more tight and costly! It needs you know the main factors and parameters around bitcoin mining to decide if you can start and survive in this mining market.
 

The CC Forums

Admin
Staff member
Huumm!! Could be either yes or no!
Actually, comparing to last year,2018, the situation has changed drastically. In 2019, mining competition is much more tight and costly! It needs you know the main factors and parameters around bitcoin mining to decide if you can start and survive in this mining market.
What concerns me is the same that concerns most others in the bitcoin world. If mining margins become razor thin, only the big players will remain.

If only a few players have a large majority of the hash power, then we’re movong towards centralization. I know the system was designed to gradually result in price stabilization which then encourages use rather than hoarding and using it as an investment tool, but a side effect is that stabilization at prices near cost of mining will drive the smaller setups out.

When a business becomes a commodity and margins drop, only the big players survive. It’s a standard business tendency.
 

Beastofcryptos

Contributor
i would like to ask the cost and profit for one bitcoin mining machine,i heard many say that bitcoin mining job is quite expensive,and although its 10k now but the profit is still low, is it true ?
 

CryptoTC

Crypto Fat Cat
Staff member
Bump to answer a recent question about mining costs.

It’s a little more complicated than one single number. Answered more thoroughly in this thread from the bitcoin section here. @AndrewChan

<merged threads>
 

CryptoTC

Crypto Fat Cat
Staff member
There is a chart on here somewhere showing mining costs in different countries based on the costs of electricity and taxes, but I can’t find it. I did find this estimate post.

<merged>

Found it. It’s in the bitcoin section. This thread has a useful chart.

<merged>
 

The CC Forums

Admin
Staff member
There is a chart on here somewhere showing mining costs in different countries based on the costs of electricity and taxes, but I can’t find it. I did find this estimate post.

BTC mining

Found it. It’s in the bitcoin section. This thread has a useful chart.

Bitcoin Mining: Is It Really Worth It?
I merged all 3 threads and moved it to here to the Bitcoin Forum section.
 
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