Is Crypto Mining Still Alive?

is crypto mining alive

The current crypto winter makes a lot of us wonder if mining is still profitable.

Is crypto mining alive at all? 

Let’s evaluate how relevant mining is in the fall of 2022. Is it worth it to enter the market from scratch now?

What affects profitability?

Mining is the process of ensuring the operation of the network of some cryptocurrencies, which requires significant computing power.

Miners ensure the processing of the transaction and protect the network from unauthorized access and changes. For that, they receive a reward in cryptocurrency.

The profitability depends on several factors:

The number of mined coins.  It depends on the equipment used, the network difficulty, and the amount of the reward.

  • The rate of cryptocurrency. The prices for cryptocurrencies are formed by the market, miners cannot influence them. 
  • The cost of equipment and electricity.

Mining profitability can be estimated only for the short term. The longer the analysis period is, the more difficult it is to make a profitability forecast. The factors, on which the income of cryptocurrency miners depend, change dynamically over time.

What equipment should I use?

The times when it was possible to mine crypto on home computers are gone.

Now it can be mined by ASICs, which cost a lot. They are very loud and consume a lot of electricity. 

If you have decided to start mining and you are ready to invest from $5 000 – then pay attention to ASICs. If you want to try and are looking for a $150–$5000 investment – then you can just rent mining hash power.

How much can I earn today?

If we are talking about mining profitability in fall 2022, then the average would depend on the model of the device you use. Let’s consider the Antminer S19 J pro: with the cost of $5300, it can earn up to $250 a day. However, the final profitability would depend on the cost of electricity you can arrange.

The situation in the ASIC market directly depends on the crypto market in general. All the latest models of mining devices from leading manufacturers were purchased through pre-orders. The current drop in demand allows you to buy ASICs directly from stock.

So long-term investors can use the moment to maximize their profitability by purchasing high-quality equipment at affordable prices.

Is it worth it to enter the market now?

If you are thinking about entering the mining market then you should ask yourself what goal you want to achieve. If you want to earn a lot within a short period — then probably mining is not your investment type.

If you consider the mining as a long-term investment — then it is worth trying.

This will require the holding of the cryptocurrency mined for some time without selling to cover costs. Even if the market collapses, as it happened in 2018, sooner or later the value of the crypto will start growing again. Then it will be possible to sell the accumulated coins at a very good price.

Is there any future for mining?

Over the history of cryptocurrencies, mining was considered dead several times. But, as we can see, it still exists and even brings profit to the miners. The threshold for entering this business has increased significantly compared to what it was 5 years ago, but the rates are also different now. 

If you do not want to mine crypto in your garage, then you should find good and reliable contractors, who will help you with the mining equipment.

There were a lot of providers of similar mining services over the last 5 years – not all of them survived during the crypto winters. The operator of the largest mining farm in Armenia – ECOS (situated at the territory of the Free Economic Zone in Hrazdan) is celebrating its 5th anniversary this week. Over these years, ECOS was providing both rent and hosting of mining equipment. Through government incentives, ECOS can provide good hosting prices as well as 24/7 support.

ECOS data center receives 60 MW of clean, affordable, and stable electricity from high-voltage networks of the Hrazdan thermal power plant, which allows its users to earn good passive income and manage it with several clicks on their smartphones.

Currently, due to the Anniversary, there are very good prices to try Bitcoin mining.

The crypto winter will come to its end soon – today is still a good moment to maximize future profitability and buy mining equipment or hash power at affordable prices.

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