To Mine or Not To Mine?

To Mine or Not To Mine?

By Dajigganaut | Cryptonewb | 31 Aug 2019


Mining. A staple of many cryptocurrencies, all using a specific algorythm to secure the blockchain, provide decentralization and mint more coins.

These basic principles apply to most minable coins. Not all coins follow this, hell some coins aren't decentralized, but the basics of mining stay true. You, the miner, apply your resources to the blockchain and recieve a reward.

That reward is a driving force for why people mine. Yeah sure some people mine to secure the blockchain and support the community of a coin they believe in, but I would love to see the exact numbers of people who actually do that.

Let's face it, a set it and forget it form of passive income is atractive to alot of people. Who doesn't want to make money while they spend the day away at work or while sitting at home watching Netflix? It is a very attractive thought for many people, but is it as convienient as it appears?

The barrier to entry for many mineable coins can be real high. BTC needs specialized equipment just to mine. An ASIC miner for Bitcoin requires thousands of dollars for one ASIC miner, not including import taxes, just to start. Let's not forget electricity cost ( avg U.S. price per kw/h **0.13**), or mining fees. This all adds up quickly! But if you got the capital to invest then may be its worth it.

At current prices, they switch all the time so probably not valid the minute I publish this, the Antminer S17 pro (53TH/s) can make you approximately **$3000** a year. Not bad in general, and hopefully more if prices increase. Unfortunately probably less as newer ASIC miners are released and hasrates increase.

Maybe look into other mining options? Most CPU mineable coins may not be worth it, though with XMR switching to RandomX things may change ( hell I've looked into buying a multi-CPU server to mine XMR). Still same issues persist capital to get in as well as electricity and just dealing with the speed of electronic innovation (how long will my mining rig stay relevant?).

Again looking into GPU mining, same issues. Cryptocurrencies and blockchain technology is moving at incredible speeds. Things change, coins disapear, people gain interest, lose interest, whales buy in and sell, corporations hop into the pool while others hop out, new innovations are added, and algorythms change. The enviroment of the cryptosphere changes on the regular. Staying on top of all this can be hard or frustrating.

Am I saying mining is not worth it? **Hell no!** what I'm saying is do your research. Look into it. Is it work it to you personally? Is it profitable? Do you believe in the project? If you answer these questions with a yes, maybe its time to look into mining.

 

 


Dajigganaut
Dajigganaut

10yr Military Veteran, gamer and Crypto enthusiast.


Cryptonewb
Cryptonewb

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