It has been a long run since the people first started mining crypto-currencies. Early adopters of the Bitcoin had made maybe thousands of coins yet most of them couldn't see the future and sold or forgot those coins. Since 2017's last quarter, people have started going crazy about "crypto mining" and this mania still keeps going on, but here, we have a question, is crypto-mining dead?
I would like to start the article with some facts and price analysis, so that many people can see the truth for themselves.
- A rig that makes 1 ETH per month in September 2017 is now making 0.4 ETH per month.
- Ethereum price went up to 800 USD from 300 USD since September 2017.
- Overall, a rig that was making 300 USD started to make 320 USD per month in 6 months.
Now we can say that if you were making 300 USD before, now you'll be making 320 USD, which seems good, right? Well, actually this question has two answers, if you bought your rig 6 months ago, then definitely YES but if you just bought your rig or planning to buy one soon, then the answer is a huge NO.
We have told that the average income had increased approximately 7% BUT the average equipment cost has increased more than 100%.
A chart shows the average prices for a AMD RX580 graphics card. As you can see the average price for a card from 300 USD just skyrocketted to the 600 USD.
So here are the numbers now, 6 months ago, a rig that you could buy for 15.000 USD would have a 9-10 months of ROI time, and on average, the equipments would last two years. So, for 9-10 months you would mine for your investment, then 14-15 months just for profit.
And now, the same 15.000 USD investment would return the investment in approximately 18 months and you will only be able to mine for profit for 4 months.
Still 4 months seems good, right? WRONG. There is something called "difficulty" which increases over time and been skyrocketing right now. Here you can see the Ethereum difficulty and understand that miners will be making less and less Ethereum with time.
I am not saying "you should immediately stop mining". Mining process is still profitable for those who bought their systems earlier. I am just trying to say that if you want to build a mining rig, right now, with current equipment cost, just think one more time.
I hope everyone can make some profit, have a nice day!!
P.S. : This article has been written for Ethereum but most of the calculations are very similar for other coins. The difficulty of mining has been skyrocketing for all the crypto-coins in the market.
Source : https://kriptokoin.in/kripto-madenciligi-bitti-mi/ - Also written by me.