How profitable is mining, really?

t4keheart

Weaksauce
Joined
Sep 24, 2019
Messages
86
Hi guys,
Wondering how profitable it actually is to get into crypto mining.
How much one could expect as an initial investment to get running, the cost to run the server, and the expected payout?
Maybe if you mine, let me know your return rate?

I've always played with the idea of making a mining box, but I just really don't know if it would be worth it.
 

Archaea

[H]F Junkie
Joined
Oct 19, 2004
Messages
9,981
you are 3 years too late.

seriously.

now it's pennies.


This information is still generally accurate, and easy to see and understand for greenhorns. Select your card, select your electricity rate, and see your generally negative earnings unless you have newest gen hardware.
https://www.nicehash.com/profitability-calculator/nvidia-gtx-1070

Newest gen cards make a tiny little bit, one generation old cards basically break even against the cost of electricity, and anything older loses money - and that's about the way it goes.

Here's another profit calc for more advanced users:
https://whattomine.com/

1584678173167.png
 

t4keheart

Weaksauce
Joined
Sep 24, 2019
Messages
86
lol jeeeeez. Had no idea it was that bad! I wonder how all those mining companies are doing now.

Well, maybe I'll just buy some bitcoin because the price is pretty tanked right now...
 

kirbyrj

Fully [H]
Joined
Feb 1, 2005
Messages
25,502
If you are going to buy equipment to mine, you are wasting money. Just buy your coin of choice instead.

If you are mining with equipment you already have, you might break even in the short term if you're selling immediately. The gamble is that if you hold it, it will increase in price. For example, that $0.36 you make a day with a 1070 might be worth $2.00 a day in 5 years.

Either way, still not worth it to buy masses of equipment to mine just buy it from an exchange instead.
 

t4keheart

Weaksauce
Joined
Sep 24, 2019
Messages
86
If you are going to buy equipment to mine, you are wasting money. Just buy your coin of choice instead.

If you are mining with equipment you already have, you might break even in the short term if you're selling immediately. The gamble is that if you hold it, it will increase in price. For example, that $0.36 you make a day with a 1070 might be worth $2.00 a day in 5 years.

Either way, still not worth it to buy masses of equipment to mine just buy it from an exchange instead.
5 years? Have you seen the price fluctuation in the past 1 year?
 
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Parja

Whineologist
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Oct 4, 2002
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Yeah, so not profitable at all right now. But if you want to mine today (with hardware you already have), consider it an investment for when the price rebounds. Otherwise, just buy.
 

blackmomba

Limp Gawd
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Dec 5, 2018
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185
Depends where you are. Electricity is cheap where I am, 10 cents kwh. Makes it easier to turn a profit for sure
 

Parja

Whineologist
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Oct 4, 2002
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Depends where you are. Electricity is cheap where I am, 10 cents kwh. Makes it easier to turn a profit for sure
How do you figure? With the low price of BTC right now, even a 2080Ti is only making 27 cents/day profit with power at 10 cents/kWh.
 

blackmomba

Limp Gawd
Joined
Dec 5, 2018
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How do you figure? With the low price of BTC right now, even a 2080Ti is only making 27 cents/day profit with power at 10 cents/kWh.
Which calculator are you using? Nice hash says 1.18 Cad per day profit for a 2080 ti
 

kirbyrj

Fully [H]
Joined
Feb 1, 2005
Messages
25,502
5 years? Have you seen the price fluctuation in the past 1 year?
My statement about $2.00 shows a 550% increase over the current price of around $6k. Even at it's height of $19k, it was never 500% of the current value, and I wouldn't expect it to be (barring some other external factor...coronavirus?) until about 5 years from now. On March 22, 2019, BTC was around $4000. March 22, 2020, it's around $6000. So if you mined $0.36 worth of BTC in March 2019, it's now worth $0.54. Sure, it has fluctuated between $3700 and $13,000 between those times, but so has the payrate. As profits increase, more fairweather miners come back onboard which increases the hashrate and lowers payouts. Pretty much you are always making the same $0.30-0.50 per day unless you plan on holding for years. I only used 5 years as an example. It's almost better to not look at the USD conversion, but look at what kind of BTC payout you're getting, especially if you plan on holding anyway.

I don't see any large scale miners ever really reaching a decent ROI in the current market. That being said, the 1st gen ETH asics are on their way out due to the 4GB memory limit on them, so it could be profitable in the short term as long as your video card has more than 4GB of VRAM. But I still stand by buying most crypto on an exchange (and maybe using idle hardware you already have to mine in spare time).
 
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Parja

Whineologist
Joined
Oct 4, 2002
Messages
11,986
Which calculator are you using? Nice hash says 1.18 Cad per day profit for a 2080 ti
The big number they show you is just income. Gotta look below to see what your net profit is. ~2/3 of your income is being eaten up in electricity costs.
 

Schro

Supreme [H]ardness
Joined
Mar 15, 2002
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7,466
Quite frankly, it has very rarely been profitable to mine and sell as you earn over the history of crypto. Only when price goes parabolic/to the moon does it become super profitable to mine and that's only until the price deflates or everyone else gears up and difficulty increases. The real way you make money with mining has historically been mine and HODL. Imagine if it was 2012 and you've got 3-4 cards mining 1 BTC/day that's worth $1-2 at that time? That was after price mooned to $30 and sank back down to that level.
 
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