Is mining worth it?

[PaulEchere]

I recently took some time to learn about mining crypto and even though my knowledge on this topic is very limited - it seems that every 6k $ one puts into their mining set up would return around 200$ per month for most popular cryptos. Considering the current price of course.

Likely the the price will grow significantly in the coming years, but still - wouldn't it be more profitable to just hold the same money as crypto? Given the hardware you purchase will gradually deteriorate.

[Rolls]

If you are looking to mine BTC, I would forget it the starting costs alone for 1 computer to mine is around 60k (afair) then there is electricity costs, service costs, up grade costs etc.

Eth is moving from Proof of Work-POW mining like bitcoin to Proof of Stake- POS in a move called "The Merge" Eth 2.0
Vit buternin founder of ETH reckons that eth could go to 15k as it is going to be seen as greener and more eco friendly.

One I looked at mining, is Helium. They are using IOT 5g to mine. You buy a router type of device attach it to an ariel from the highest point of your house/ apartment etc and connect. Altogether the entry price is around 800$ which was a few months ago. helium price was around 32$ then.

Some people were making good money around 200 a month. The higher you get the better you mine. But there needs to be a couple more miners around you so they can "talk to each other" However if there is too many then mining returns get diluted another problem was supply chain of equipment takes 6-8 months to get from 1st order. Helium price is around 9$ now.

Another coin to look at is ....Monero. the best of the privacy coins, meaning transactions cannot be followed. 21 million coins in total just like bitcoin, however Big Gov is looking to crack down on it. Even if it does, I think it is still a winner. CBDC is coming for everyone and Monero could be a good balance to it.

I dont own either of the coins mentioned.

[TheGooner]

It depends. You could get lucky.

While mining BTC for a living requires professional kit if you want to earn regular rewards, as Rolls has indicated above, the mining process and mining algo also has quite a degree of randomness.

Recently a small miner with cheap kit, hit the jackpot and solved a blockhash and earned 6.25 BTC which was worth US$275K for doing so. He estimated that his server of 126 TH power had about a 1 in 10,000 chance of solving a block every day - meaning that it could take up to 27 years to solve - so he was very, very, very lucky.

Incredibly, a similar thing happened just three days earlier ... with a small miner who had been operational for just two days !!!
So for these lucky miners, Crypto mining was definitely worth it, but it's a lottery.

News Source : https://decrypt.co/90364/astronomica...itcoin-jackpot

[universal4]

Good story Paul, but those are the exception and NOT the norm.

Players hit the big million dollar and multi-million dollar jackpots on the slots too.

Rick
Universal4

[big fish]

Bitcoin is dying and crypto is a scam. BTC Mining might have been worth it in past years but they're (crypto) all going back down for years to come so I wouldn't invest a penny into any cryptos or any crypto mining rigs.

[DaftDog]

Bitcoin is dying and crypto is a scam.

Cynics have been predicting the demise of bitcoin for years, and years.

[drifter8]

BTC will not die and we all know it pretty well.

Crypto mining is an interesting place to develop, but those lucky guys are 1 from 1 000 000.

Once the war in Ukraine ends, we will see the raise of BTC, I believe that by the end of 2022, BTC will be close to 50 k $.

[PaulEchere]

Thanks, I haven't actually looked into Helium, it seems quite interesting.

Monero is one that I was initially looking at and the one that actually sparked this conversation in the first place. From what I figured, it seems to have a rather low return compared to what it takes to mine it. Best case scenario is around a 100$ month (all expenses included) for ~8k worth of mining equipment. Unless I am missing something?

If you are looking to mine BTC, I would forget it the starting costs alone for 1 computer to mine is around 60k (afair) then there is electricity costs, service costs, up grade costs etc.

Eth is moving from Proof of Work-POW mining like bitcoin to Proof of Stake- POS in a move called "The Merge" Eth 2.0
Vit buternin founder of ETH reckons that eth could go to 15k as it is going to be seen as greener and more eco friendly.

One I looked at mining, is Helium. They are using IOT 5g to mine. You buy a router type of device attach it to an ariel from the highest point of your house/ apartment etc and connect. Altogether the entry price is around 800$ which was a few months ago. helium price was around 32$ then.

Some people were making good money around 200 a month. The higher you get the better you mine. But there needs to be a couple more miners around you so they can "talk to each other" However if there is too many then mining returns get diluted another problem was supply chain of equipment takes 6-8 months to get from 1st order. Helium price is around 9$ now.

Another coin to look at is ....Monero. the best of the privacy coins, meaning transactions cannot be followed. 21 million coins in total just like bitcoin, however Big Gov is looking to crack down on it. Even if it does, I think it is still a winner. CBDC is coming for everyone and Monero could be a good balance to it.

I dont own either of the coins mentioned.

[Meistro1]

Mining isn't worth it with the fall in Bitcoin and Ethereum prices, but I do not believe crypto to be a scam. There is real value in a decentralized currency that is outside of the banking system and the state's control.

[Rolls]

Bitcoin is dying and crypto is a scam. BTC Mining might have been worth it in past years but they're (crypto) all going back down for years to come so I wouldn't invest a penny into any cryptos or any crypto mining rigs.

Respectfully big fish I've been hearing this for years, I've seen it rise from 0.00 to 70,000 if anything its CBDC that is getting me worried. Its not the fact that I have loads of money to hide........I dont, and that is why I am here, I need to learn to affiliate.

Its the fact that Big Gov can turn off your income stream at the click of a switch. Yes, I know they can do this already and times past you could rely on cash to get over your loss.... you could have a 1000 dollars cash to spend on just bread and beer

but what good is cash if you have nowhere to spend it. The world is becoming a cashless society.

Thanks, I haven't actually looked into Helium, it seems quite interesting.

Monero is one that I was initially looking at and the one that actually sparked this conversation in the first place. From what I figured, it seems to have a rather low return compared to what it takes to mine it. Best case scenario is around a 100$ month (all expenses included) for ~8k worth of mining equipment. Unless I am missing something?

TO add to your mining woes monero is halving their rewards for mining,
meaning more miners get in on the action and less rewards, but more uptake and usage with monero, leading to a higher price.

Think of monero as what bitcoin should be. I think with the advent of CBDC added to the fact how easy it is to track wallets that there will be a reckoning of some sorts and monero could be a winner based on its security, longevity, and that its wallets cannot be tracked.

There are other privacy coins like secret, zcash that can be risers but monero is the long term bet for me.

Word of caution.... Monero last reached its ATH in the crypto pump of 2018, when it gets to that price there maybe a lot of dumps as people will just be happy to get their money back.

Mining isn't worth it with the fall in Bitcoin and Ethereum prices, but I do not believe crypto to be a scam. There is real value in a decentralized currency that is outside of the banking system and the state's control.

We give it the belief meistro!


Also it completely slipped my mind to add Doge as a mining option, yes doge the memecoin. With Elon sniffing around Twitter and taking it over Elon can easily use doge as a payment service to influencers etc.

RE: Helium they have a great site where you can locate yourself and see the miners in your area and see there returns.
explorer/helium/com

[Sherlock]

Mining is always profitable. For some people who have the biggest cost advantage. It has never been profitable to people who are asking random people on internet. As everything in business: this is about putting your money in and losing on large scale.

I am in loose contact with one medium sized enthusiastic miner who already put probably few millions in (and a lot of time), who has miners all over the world (Russia just seized them) and he is not beating HODL strategy. So his next step is to come with a shares for potential small miners (with 20% management fee), who want to "invest" in mining. That can be profitable in the end.

Mining is profitable on level of rockets who are bringing cargo to the space. Probably very profitable, but only to those who can really invest amounts as big as the power plant itself.

[TheGooner]

Good story Paul, but those are the exception and NOT the norm.

Hey Rick, as gambling affiliates I am comfortable selling / telling a big win story !!

As I said - they were lucky - but it is important to realise that crypto mining on a small scale is as random as a jackpot lottery or panning for a gold nugget in a river.

Most will not get lucky - but you CAN get lucky - and the rewards are very high.

[Sherlock]

Crypto mining on small scale is that much more -EV bet by orders of magnitude (when all costs are included) compared to playing slots in the most unfair casino with the highest vig.

Small miners spend not only several times more for unit of electricity. They also do not have access to the newest miners, because they are prereserved by the big ones. And the costs of gaining the knowledge and monitoring the mines are more or less the same, whether it is done for a lot of HW or for just 1.

[Strider1973]

Most will not get lucky - but you CAN get lucky - and the rewards are very high.

I think the days of solo-mining BTC are long gone. You have to join a mining pool.

Mining can profitable, otherwise there wouldn't be miners. But as Sherlock said, there are economies of scale involved. As a small guy you won't get rich with it (if you have access to very low cost or free electricity) or you'll work at a loss. So from a pure financial perspective, you are probably better off by just buying the coins directly instead of buying mining equipment. But you can also just do it as a kind of hobby, and learn some technical skills.

[big fish]

Cynics have been predicting the demise of bitcoin for years, and years.

watch "the big short" - history repeats itself - tulip mainia, .com bubble, 2008 real estate bubble, 2022 crypto bubble

[big fish]

Respectfully big fish I've been hearing this for years, I've seen it rise from 0.00 to 70,000 if anything its CBDC that is getting me worried. Its not the fact that I have loads of money to hide........I dont, and that is why I am here, I need to learn to affiliate.

Its the fact that Big Gov can turn off your income stream at the click of a switch. Yes, I know they can do this already and times past you could rely on cash to get over your loss.... you could have a 1000 dollars cash to spend on just bread and beer

but what good is cash if you have nowhere to spend it. The world is becoming a cashless society.



TO add to your mining woes monero is halving their rewards for mining,
meaning more miners get in on the action and less rewards, but more uptake and usage with monero, leading to a higher price.

Think of monero as what bitcoin should be. I think with the advent of CBDC added to the fact how easy it is to track wallets that there will be a reckoning of some sorts and monero could be a winner based on its security, longevity, and that its wallets cannot be tracked.

There are other privacy coins like secret, zcash that can be risers but monero is the long term bet for me.

Word of caution.... Monero last reached its ATH in the crypto pump of 2018, when it gets to that price there maybe a lot of dumps as people will just be happy to get their money back.



We give it the belief meistro!


Also it completely slipped my mind to add Doge as a mining option, yes doge the memecoin. With Elon sniffing around Twitter and taking it over Elon can easily use doge as a payment service to influencers etc.

RE: Helium they have a great site where you can locate yourself and see the miners in your area and see there returns.
explorer/helium/com

have you heard of a long squeeze? it will be the biggest of all time!

[Rolls]

As I said BF we give it belief and that belief can be taken away very easily, eg a major stablecoin like Terras UST that has just failed.

or a major exchange going t1ts up. eg Kraken, I mention them as they are the smallest of the major ones and the least connected (imo)
Jesse was some regular kid that grew it himself to where it is now.

Gemini is backed by old monied family types i.e. Winklevoss and their harvard buddies.
Coinbase is backed by Blackrock. Blackrock being one of the biggest corporate entities in the history of the world.
Blockchain/com have themselves involved in the WEF so they get to know the lay of the land.

Do I believe in a long squeeze. I do. I'll even take your long squeeze and raise it with a "theory" lol.

Ever since I first heard of CBDC and after reading more up on it, some small part of me thinks that bitcoin was concocted by a group with a long term agenda of getting people hooked on digital money ie crypto then pulling the rug

Then when the rug is pulled they come with their Big Gov and central bank digital currency with all the benefits of having your trust but more importantly your online and offline identity FIRMLY tied to your wallet.

Its like the drug dealer analogy give em small samples first, get them hooked, they become your user and then dealer.

[tufty]

Cynics have been predicting the demise of bitcoin for years, and years.

It tends to be those who feel they missed out on Bitcoin in the first place. Now they wish for its collapse (even after 13 years!) with no sensible reason other than personal bitterness.

I have seen people on this forum over the years turn from haters to adopters. They are the bigger, and richer, people for it. It is never too late to ditch some sort of irrational personal grievance against a protocol and take advantage of a bear market.

With all the problems in the world, and some very wealthy people's personal wealth being squeezed or frozen I am amazed BTC is in the doldrums as it is a natural safe haven for those encountering problems within the sh1t-storm that is the fiat infrastructure. I have been amazed before at BTC acting counter-intuitively (like at the very start of the pandemic) but always it was just a delayed reaction before it behaved as expected.

On the point of bitcoin mining, that was an itch I really wanted to scratch and so invested in a host of publicly listed bitcoin miners (maybe 10 of them). Now I don't feel like hosting my own. Personally I think the vital component is free or very cheap electricity, if you have that via some sort of personal renewable energy then do it yourself if you like. If you don't, then I don't see it as that attractive.

[Sherlock]

watch "the big short" - history repeats itself - tulip mainia, .com bubble, 2008 real estate bubble, 2022 crypto bubble

what a bs, tulips were a thing in 2013, then for real boomers in 2017, in 2021 run even the most awkward ppl did not mention it

but 2022 crypto bubble???? 2022 is a cryptowinter that anyone with more than half neuron was able to predict

it is just the nature of bitcoin that it has supply shocks every 4 years and nature of shtcoins that they follow bitcoin and nature of people who are surprised by everything cyclical

crypto is now near bottom or at bottom already, but now it will rise with inflation; so most people will be wrong again with their predictions because nobody saw btc in running inflation/hyperinflation

[Sherlock]

It tends to be those who feel they missed out on Bitcoin in the first place. Now they wish for its collapse (even after 13 years!) with no sensible reason other than personal bitterness.

I have seen people on this forum over the years turn from haters to adopters. They are the bigger, and richer, people for it. It is never too late to ditch some sort of irrational personal grievance against a protocol and take advantage of a bear market.

With all the problems in the world, and some very wealthy people's personal wealth being squeezed or frozen I am amazed BTC is in the doldrums as it is a natural safe haven for those encountering problems within the sh1t-storm that is the fiat infrastructure. I have been amazed before at BTC acting counter-intuitively (like at the very start of the pandemic) but always it was just a delayed reaction before it behaved as expected.

On the point of bitcoin mining, that was an itch I really wanted to scratch and so invested in a host of publicly listed bitcoin miners (maybe 10 of them). Now I don't feel like hosting my own. Personally I think the vital component is free or very cheap electricity, if you have that via some sort of personal renewable energy then do it yourself if you like. If you don't, then I don't see it as that attractive.

Not every hater converted into believer. There are people, like RZ, who rather die than see that they were mistaken.

No asset is priced correctly at the moment. It is the human nature. We are facing total world disaster, where nearly all values will be wiped out and it is truly hard to predict what will survive. Just look at the gold. It has to be several times higher than it is. But because rn there is tiny interest at fiat and part of the world is totally idiotic and thinks that central banks will not print money when facing civil unrest as the last shot in the party... so people want cash and they want it now, before the fiat will be too expensive. Fiat is the new shtcoin of 2022.

So even when gold or btc is too cheap now and fiat too expensive, even I am still holding my last few money in fiat, because they can be a good opportunity to buy during next few weeks or months.

But once Fed/ECB says: "well... we stop rising the interest because the economy is in dire situation blah blah", then market can deliver more than 100% hike of BTC per day and 1000% in few months and everyone will be surprised again

and then big fish can come with his part: "this is 2023 tulip mania gentlemen"