This question is asked and googled thousands of times every day, is altcoin or bitcoin mining profitable? Usually, you will get a generic answer of yes or no. Let’s discuss the current state of bitcoin mining using current facts.
Bitcoin Mining Basics
If you are new to cryptocurrency mining then take a quick read over our intro to mining located here. There is a big difference in understanding if you are going to set up a bitcoin mining rig or an altcoin mining rig. As we discussed earlier you can only mine Bitcoin or Litecoin with ASIC machines like the Antminer pictured below.
The problem with these machines is they are hard to obtain as most are sold by Chinese suppliers with very poor customer service. They do not arrive on time, being months late with no real recourse but to wait and hope your machines show up. If they do then its fairly easy to calculate what your profitability is. For example, let’s assume you pay $3000 for an Antminer S9 (the latest Bitcoin ASIC miner) with a power supply and you now have it in hand and ready to mine. What do you do next?
Determine Profitability Estimate
Estimate is the key word here. When it comes to Bitcoin mining you need to be extremely aware of the current value and difficulty level to know what your estimated daily income could be. Luckily there is a website that does this and is very easy to use. Below is a snapshot of the ASIC page on What to Mine. The only thing I changed is the cost to reflect my current electricity rate which you can find on your bill or by calling your electric company. Click the link above and change that function and hit calculate will generate exactly what you need to know.
Once you hit calculate you will then be able to scroll down and look at how much money you would make if you were mining Bitcoin over the last 24 hours. Keep in mind this number will change based on the price of Bitcoin and the difficulty. Given the scenario above you can see below that you would have made $38.08 after electricity over the course of the day. You can also see what other coins you could mine with the Antminer S9 and what their rates would be.
So now let’s assume in a perfect world you make that $38.08 every day and you cash out your bitcoin to pay off your ASIC machine as soon as possible. You paid $3000 for the entire set-up so 3000/38.08 would take you just about 79 days to break even. After that its all profit. You will not become rich overnight, but yes Bitcoin mining is profitable if you can afford to wait 3 months. The problem is once the machine becomes obsolete due to newer models being more profitable than you will need to upgrade your machines at some point.
Another website you can use that gives you similar results and is the same concept is Crypto Compare.
If someone tells you Bitcoin mining is not profitable do not listen to them. It is profitable, however, you need to understand how it becomes profitable and how to get there for your situation. Look at this way, most businesses are not profitable the first year they open. If you started a business and were turning a profit in less than 3 months you would be considered a huge success!
What about Altcoin Mining?
Altcoin mining is a whole different ballgame, as we have discussed you need to invest in completely different equipment. You will need video cards, often referred to as GPUs, in order to mine. They also come with a much longer time to break even. In the next article, we will discuss the differences between altcoin and bitcoin mining to ensure you know the best ways to calculate your profitability.
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