Is It Really Worth It to Mine Cryptocurrency?

Is It Really Worth It to Mine Cryptocurrency?

Are you looking forward to earning profit through cryptocurrency and wondering if it's worth mining or not? If yes, then you’re at the right place. We are going to predict whether mining cryptocurrency could generate profits or not. Moreover, many aspects can reduce the profit in mining. You will get to know about them in this article. So, let’s get started!

GPU Expenses of Mining Cryptocurrency

CPU is not suitable for efficient crypto mining, so graphics processing unit GPU aids in digital transcription in the computer system. Also, GPU has increased speed and higher power potential, so it is helpful in blockchain mining. Radeon HD 5970 executes 32 bits instructions per clock that are 800 times higher than the standard CPU. 

Mining with GPU may not be cost-effective because mining with RTX 2060 after the experience of two years will earn roughly $5 a day. The cost of this GPU is nearly $800, and if you make $5 a day, you may end up with just $1825. This amount is enough to pay for a GPU. 

The profits from mining Ethereum through GPU were $150 in 2017, which increased to $300 in 2018. In 2021 the profit per month is near $2000, but it is not a handsome profit due to increased competition. 

Electricity Consumption and Charges 

Running GPU requires a lot of electricity, and the charges compel miners to work in groups through mining agencies and farms. These companies prefer countries where electricity is cheap, but crypto mining is considered illegal in many countries. Electricity consumption and its charges cause a decline in profit. 

If you run your computer for a day, you have to pay at least $12 a day except for your mine in the area where electricity costs are low. Therefore, electricity costs deduct a significant amount from your total profit. 

Why Do People Still Mine Cryptocurrency?

Cryptocurrency seems less profitable due to running GPU and paying for electricity consumption, but many aspects make it worthwhile. You have to pay once for a high-end GPU. Still, mining cryptocurrency is advantageous because you have complete control of your assets. Also, the increase in prices of a specific currency can help you generate a good profit. 

People prefer mining cryptocurrency because the transaction fees are low, and everyone can trade without third parties' involvement. Moreover, cryptocurrencies are unable to counterfeit because it is a digital currency and it lowers the costs of services worldwide, but still many people use it. 

How Can You Generate Profit Through Mining?

You can generate profits through mining by getting a server that runs your mining software. You have to choose the correct currency by in-depth analyses of its history. First, make sure to set up the miner and log in. Run your miner as long as you want and cash out your profits. 

One way to generate profits through mining is that if you live in an apartment with electricity bills, that will ultimately make you a handsome amount of money. For example, if you use four computers to mine, you can make more than $20 a day and $7300 a year. 

You have to change your GPU after two years. If you own four GPU units, then it is going to cost you $3200. Still, you would be left with $11400 at the end of two years if the cryptocurrency price stays the same. However, if it increases, then the profit also increases. 

Is Mining Cryptocurrency Really Worth It?  

The cryptocurrency market is still not well developed, so it is difficult to tell if crypto mining is profitable. However, based on the trends, we can say that cryptocurrencies have substantial holdings and staying powers. 

Cryptocurrency mining has high costs, and a single person cannot make many profits through it, so multiple organizations come into the circle and make the mining profitable. Conversely, if you plan to mine cryptocurrency alone, the electricity and hardware maintenance cost could reduce your profit percentage. 

Bottom Line 

Summing up, mining cryptocurrency might be cost-effective because the crypto market is developing with time. At the same time, cryptocurrency has substantial holdings in the market, and its future is secured. Moreover, mining requires a solid GPU to mine efficiently, but its maintenance costs and electricity charges can make mining an unprofitable process. Therefore, if you are mining on your own, then it is less profitable.