Is Crypto Mining Profitable?
I get asked on occasion if it's potentially profitable to mine bitcoin, ethereum and other cryptocurrencies.
In 2017 I mined eth and a few other cryptos. I was told by someone whom I met at an event, that I'd make my money back in 40 days.
Yes, 40 days. It sounded too good to be true. But I was excited anyways. I immediately had visions of a warehouse full of mining rigs, and I'd have a good passive income with mining cryptocurrencies.
Common sense thankfully took over, and instead of going all-in on a bunch of mining rigs, I decided to buy just one (video above) and see if this would really pay for itself in less than two months.
After a week of mining eth from my brand-new, top-of-the-line rig with the newest Nvidia graphics cards, 8 Gigs of RAM, yada, yada, yada; my payout was about $18. $18 x 4 = $72 per month, and this was without factoring in the cost of power.
The mining machine costs about $2000 at the time.
It wasn't possible for it to pay for itself in 40 days, or even 400. Even two years of mining would have not paid off my initial investment. The only way it would've paid off, is if the price of eth suddenly hit $5000. Or if I were to swing trade the cryptos there were mined. But this brings trading into the equation.
I wanted a passive income generating mining rig and not have to trade.
Mining is like a slot machine. It can pay off, but one has to be very patient. And it requires a bit of tinkering. Changing mining pools, dealing with software and Windows updates, power outage 'blips' that requires to turn the machine back on. I could have bought an Uninterruptible Power Supply to prevent this, but the one needed to back-up such a powerful computer was difficult to find (here in Thailand), and when I finally found one powerful enough to work as a proper backup, it would have added another $750 to the overall cost.
Mining rigs are hot. It's the power cost and heat equivalent of having two toaster ovens turned on all the time. You may have noticed in the video— when zooming in on the monitor, you could here air blowing. Not only did I have the air conditioning on, but also a fan blowing on the rig 24/7.
Someone asked me about cloud mining. This is a bigger waste of money in my experience. Most— or maybe all— are scams.
See my video here about why you should avoid cloud mining, mining rigs and more https://youtu.be/KHmUk_nIIk8
Only mine bitcoin and cryptocurrencies if you're a tinkerer and like to do it as a hobby. If looking for maximum ROI, in my limited but first-hand experience, just put the ~$2000 into buying undervalued cryptos like Bitcoin Cash, Basic Attention Token, Theta, DigiByte and others mentioned in my private crypto investor group.
Or, put $400 into each of the five cryptos that myself as well as the Palm Beach Confidential letter talked about, that are expected to go up as much as 200,000%. These are: Link, 0x, CRPT, TNT and RCN.
Final thought: The reason why most people want to mine cryptos, either via cloud mining or with their own rig, is that they're looking for a passive income opportunity. If this is the case, the following cryptos will do just that. Either now or in the near future.
These are: Theta, Link, 0x, NEO, BNB (Binance Coin), Tezos, IOST, ADA and others. Some of these cryptos should be part of your core holding for a balanced and income-generating portfolio.