Many people who would love to get into cryptocurrency mining ask the question – is it still profitable?
In two words – not really. Many can debate this, but I’ll explain why my opinion is such throughout this article.
First, if you have never mind Bitcoin before (or any cryptocurrency) you need to understand first that yes – you’re late to the game. Competing with everyone else who is mining for crypto currency now is difficult – it does not matter what currency you’re mining for. Anyone who says different does not know what they are talking about. In order to mine for any currency, you need GPU’s. You need high end GPU’s, ones that cost a lot of money – yes, video cards, in other words. Some of the best video cards for mining – well, they aren’t cheap. Say for example you want to start with a 1050ti – while this card may go for $250 or so, you won’t make that much money mining with it. You also have to be mining all day, every day in order to see any return at all.
Many people get into mining just to find themselves spending thousands on video cards, mainboards, and other hardware, just to find that the video cards fry or stop working after 6 months or less. In order to mine, the GPU needs to run at high intentsity all the time – night and day. You might hear people say, “oh well when I’m playing a video game, it needs to run at high intensity then too, so it’s just like that.” Imagine playing the highest resoloution game that can possibly tax your system – now imagine you’re playing that game every single day, 24/7. Start to get the idea now?
Bitcoin Mining places intense loads on GPU’s
You can buy the highest end video card on the market, like the 1080, or 1080 TI, or whatever. But you’re still going to fry that card relatively quickly while mining 24/7 and running high intensity formula against the GPU. Not to mention – one card does not really cut it. To make some real money with mining cryptocurrency, you need to be running 4-6 of these cards (or more) at the same time.
The highest end rigs use huge power supplies. Eventually, you start getting into builds that require a completely different kind of plug to work – like the plug that your washing machine or dryer may use. This in turn requires a special outlet just for the machine to be able to draw enough power to be turned on – let alone the amount of power continually consumed to keep the machine running 24/7.
The most successful mining rigs or outfits are established in places where electricity is cheaper. There are some cities in some parts of the world, where hydro costs are less. These are great places to mine. However, the downside to this is – it’s been done. Those places that exist that have cheaper hydro costs, are already home to bitcoin farming mines generally. So finding a place that is unexploited can be difficult.