Is it a good time to invest in miners?

roman111

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Oct 21, 2021
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Hi, I am considering to get into crypto mining and would appreciate if someone could answer some of my questions.

1. First of all, is it worth to mine in the UK where power prices are £0.17 / kWh (0.23$) ?

2. On paper the most profitable device I found so far is Innosilicon A11 Pro ETH 2000Mh/s for about $24000 where they say it brings almost $7500 profit per month. At this rate power costs are meaningless.
However, from 4 months up to a year the ETH prove of stake implementation is going to be completed. I believe that with GPU miner rig I just could start mining something else but what about Innosilicon A11 Pro? Is it going to be possible / efficient to mine other crypto with it after the merge?

3. Finally, is it a good time to invest into miners now? (To be honest, I think it’s not, but I prefer ask other opinions) What I mean is that at the moment crypto are on the very bullish trend and I am in the camp that says BTC will hit $100.000 within next few months. So, I am thinking to keep the crypto assets to the end of the bull market cycle and invest in miners when the bear market will begin to be apparent. Is that a good logic?
 
Thank you for your replies.

I definitely need to do more research into the subject. At the moment I think that despite the high electricity cost if I could manage to get some, maybe not great but, decent passive income it could be worth trying. The point is really to diversify the sources of income because I definitely will not cease trading and holding coins with my designated portfolios. I believe that it will be best to get into that after BTC get into $100K. Or maybe even to wait after ETH transition to POS so I could see how the situation looks. I could be wrong though, IDK.

If I go into that investment, I’ll follow Charlie’s advice. I thought that getting the specialized hardware like A11 Pro would be most efficient but now based on his arguments I am definitely going to make GPU based miner. There is a risk in it for sure. Based on minerstat.com calculations the miner would pay itself off after 15-16 months (the warranty for RTX 3090 is 3 years so I would be safe at least there) The thing I am most afraid now is that ETH is moving to POS and I have no idea what coins will be as profitable as ETH in relation to mining.
 
Overall crypto market - We've been in a bull market for awhile now. Things could crash in December or keep going, who knows. If the market crashes, you'll probably only be profitable if you have cheaper electricity. So keep that in mind. Your location / electric rates may price you out of the game in a bear market

1.) ASICs - Due to the crackdowns in China ASICs have gotten a lot cheaper despite it being a bull market. Normalizing for 100Terahash at bitcoin (sha256), you can spend $3300 on older machines to achieve that or $7500-8k on the latest s19. ($20-25/day profit with your power rates). This is your best option in terms of income per dollar invested, but the worst option when it comes to power efficiency (income per watt used). So for home setups it's not great.
2.) GPUs - This is one of the most efficient setups in terms of income / watt while being the middle ground for income / $ invested. The problem is that if ETH moves to proof of stake and everything else becomes unprofitable to mine due to the influx of ETH miners into other GPU mineable coins, you'll become unprofitable and your equipment will devalue rapidly as miners dump their cards on ebay. I was hoping for China's crackdown to drastically lower the network hashrate like it did to Bitcoin and other ASIC mining options, but it seems like the Chinese miners have stayed operational despite the bans. To earn the equivalent to the ASIC option, you might spend $7k or so on GPUs, but at least you'll use less overall power.
3.) CPUs - This is relatively stable and roughly as efficient as GPUs in income / watt spent but is the worst in terms of income / $ invested. Lately with other coins becoming more profitably to mine it rivals GPU mining in both for now, but that's highly dependent on coin prices that could just be temporarily high. The good side to CPU mining right now is that even if ETH 2.0 comes along it won't matter to you. Older Ryzens and Epyc CPUs are also devalued and availably fairly cheaply so you don't have to buy cutting edge hardware to be profitable and prices aren't way above MSRP either, so the risk of depreciation of your hardware is lower than some of the other options IMO. To earn the equivalent to the $3-7k ASIC option, currently you might spend $7-8k on CPUs but until fairly recently it was more like $15k.
 
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