Is Cryptocurrency Mining Still Profitable in 2023?

The Genesis Block, the initial block of the Bitcoin network, was mined on the computer’s central processing unit in 2009 by a person using the alias Satoshi Nakamoto. (CPU).

As the network’s computer capacity continues to increase and the market capitalization of the first cryptocurrency approaches its peak, mining has evolved from CPU mining to graphics processing unit (GPU) mining and, finally, to ASIC mining. CPU mining will therefore be essentially useless in 2022 and 2023.

However, the mining sector is still developing.

Despite occasional setbacks, the cryptocurrency industry is still growing, luring more and more newcomers to try and claim a piece of the crypto cake, especially through crypto mining, which is now feasible in a variety of ways.

Is GPU Mining Dead?

The majority of cryptocurrency enthusiasts have relied on mining with graphics cards or graphics processing units (GPUs) for a while to produce their digital assets, but Vosk believes that this method is no longer economically feasible.

The only graphics cards that currently generate more revenue than they consume in the form of electricity are four, and none of them generate more than 24 cents per day. Moreover, they cost between $600 and $2,000, leading the YouTuber to conclude that “GPU mining is completely obsolete.”

Alternatives to GPU mining

Vosk has examined a number of alternatives to GPU mining, but there are many others.

1) Hard Drive Mining

Hard drive mining, for example, using Evergreen Miner v2, a plug-and-play mining option that generates an average of $60 per month, is one of the most practical long-term cryptocurrency mining options.

Vosk recommends it for mining Chia (XCH) because it offers a mining rig that is quiet, produces little heat, and is inexpensive to operate. Prices range from $299 for a very basic Starter Kit to $2,799 for the Starter Kit Pro.

2) 5G Mining

In addition, Vosk mentions Bobcat miners like the Bobber 500 as a way to mine Helium (HNT) using 5G cellular and LoRaWAN wireless coverage, though this is not a very appealing or lucrative option given that his 18 Helium hotspot miners have only produced $1 per day.

His unpleasant interactions with Helium and NovaLabs have also turned him off, which contributes to his lack of trust in cryptocurrencies. However, he admits that “5G mining could prove to be lucrative whether people love that or hate that.”

3) ASIC Mining

The Bitmain Antminer K7, the second-most profitable miner after the Bitmain Antminer KA3 model, is another viable alternative to GPU and CPU mining that Vosk suggests, though he emphasizes that because it is a relatively new product on the market, the profit figures can change significantly.

Furthermore, he mentioned the Bitmain Antminer L7, which is available at the mining rig reseller CoinMining Central at the price of $10,725 a piece, whereas the K7 costs $5,728, slightly more expensive than on Bitmain’s website but comparably more available.

4) Equihash Mining

Furthermore, Vosk discussed Equihash mining, the algorithm that enables mining cryptocurrencies resistant to ASICs like Zcash (ZEC), which he advises taking into account despite criticism and derision of the token as “Z-trash” from many.’

Currently, there is only one miner showing up as profitable for mining Equihash cryptocurrencies – Bitmain Antminer Z15 from 2020 – which Vosk doesn’t see as very viable considering it is already three years old, and he projects many new Equihash mining devices replacing it very soon.

Crypto Mining is Still Profitable

Vosk’s final piece of advice is for viewers who already have equipment that makes a few dollars per day to keep using it, but to ultimately consider which option is best for them by running the numbers and comparing electricity rates.

Another choice is to build a crypto mining rig from the ground up, which may seem difficult to a beginner but, with some assistance, can become a fun and perhaps very rewarding activity that could pay off in the future, depending on the circumstances in the crypto field (and beyond).

However, using solar energy to mine cryptocurrency might be the best option, despite being a weaker one and with variable results, if independence from the local grid and compensating the electricity waste produced by mining Bitcoin (BTC) sound more appealing.

Key Terminologies

Cryptographic Puzzle – A decryption key is required to solve this particular type of puzzle because it uses cryptography to hide a secret message or piece of information.

Non Fungible Tokens – The ownership, provenance, and authenticity of these distinctive digital assets are confirmed using blockchain technology.

Mining Pool – It is a collective of cryptocurrency miners who pool their computing power to increase their chances of cracking cryptographic puzzles and obtaining rewards, which are then divided among the pool’s participants.

Mining Rewards – These are the rewards received by cryptocurrency miners for resolving difficult cryptographic conundrums and confirming transactions on a blockchain network, which typically take the form of freshly created coins and transaction fees.

Crypto Mining – It is a fiercely competitive, resource-intensive process that is becoming more specialized. The market is dominated by large-scale mining operations, which need specialized equipment and easy access to cheap energy.

Block Reward – It is the sum of cryptocurrency awarded to miners for successfully adding a new block to a blockchain network, and it frequently consists of freshly created coins and transaction fees.

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