Is Crypto mining profitable? I believe it can be.
I have researched many post into Crypto mining and the general consensus is that it is no longer profitable to mine crypto coins. I am going to lay out my ideas on crypto mining.
First off if like me you live in the UK and are looking to buy the hardware to mine crypto coins then you are going to be at a loss. With costs of energy and hardware which would enable you to run a mine without significant investment running into tens if not hundreds of thousands you would never even break even.
Secondly if you think you can invest a small amount into Bitcoin, Ethereum, Zcash into a mining pool you will be disappointed with the results and you would be far better off just holding your coins and hope they increase in value.
I will now lay out a strategy which I believe can be very profitable but you would need at least 5K capital and 12months in which to invest it.
How can this be possible? With compound interest, said to be defined by Albert Einstein as "the most powerful force in the world".
Using the rates at Genesis Mining (time of writing 3/7/17) I will show you how this can be very profitable. But first I will show you a comparison to gold and difficult it is to mine.
Have you ever seen Gold Rush? well if you have you will know how hard those boys work for the smallest amount of gold. You would have to move almost 10 tonnes of earth on average to mine 1 just 1 golf ball size of gold. Today gold is worth £940 per Troy Ounce. Now with the cost of running a mine, wages, Diesel, prospecting, Taxes, the list goes on up to £700 of that troy ounce are soon eaten up with an average profit of 24%. That is working long dirty days away from family and friends in some remote region of the world. If we can get just 10% returns from tapping a few keys on a keyboard and waiting we are doing pretty well.
Just 10% is all I believe is an amazing ROI for mining cryptos. Now without getting into details of mining pools I personally after some research choose https://www.genesis-mining.com. Whatever you choose that’s up to you I’m not trying to sell a specific sites that’s just one I feel comfortable with, so I will be using their rates for my figures.
5 K would buy you approx. 210 MH/s of Ethereum mining. Thas $816 PCM or £630
So that would be 5000/630= 8. 8 months to get our initial investment back. A genesis mining contact runs for 2 years so we are already making a massive profit on today’s ETH prices, a 200% return over the span of the contract if we just left it to run.
Now this is where the magic happens. What if we just keep re investing our profits to buy more hash? Well £630 would by you just shy of 30MH/s. That would put our total hash to 240MH/s or £720 PCM.
Again, we can buy another 30MH/s of ether mining to a total of 270MH/s or £809 PCM
Month 3 we can now buy a further 40MH/s of mining to a total of 310MH/s or £931 PCM
Month 4 a further 40MH/s to a total of 350 MH/s or £1050 PCM
Month 5 another 50MH/s to a total of 400MH/s or £1200 PCM
Month 6 another 55MH/s of mining to a total of 455MH/s or £1366
Month 8 another 55MH/s of mining a total of 510MH/s or £1531
If you noticed by month 6 we have already returned our initial investment and are in clear profit. Within 6 months the mining allowed at Genesis mining would be maxed out at 500MH/s and we would be returning £1531 pure profit to withdraw or continue to compound into other coins.
So do I think mining pools are profitable. Yes very much so with a clear plan and patients.
Thanks for reading
Diginet
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