Is Mining Profitable?

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My son and I were discussing whether crypto mining is still profitable this morning and I thought I would do some reading and a little research to see what it would take. I have always believed that when you do something you do it properly and not necessarily have the biggest and best set up, but a high quality one.

The price of Bitcoin and Ethereum being more expensive these days has definitely helped with the profitability. The difference is will we see Bitcoin or Ethereum plummet back down at some point making mining less profitable. I think both of these currencies now are destined for bigger things as institutions will be buying both.

The graphic cards are what is required or mining and they are expensive especially with the current situation of touting happening sending the price from a RRP of $699 to $1299. Even still with this price it is still profitable and we will look at that part now.

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Here is a real beauty with 78 x GeForce RTX 3080graphic cards. The cost to set up with the cards alone varies depending on how you buy them between $54 500 and $101 322. Throw in another $25 000 as hidden costs for all the other bits and pieces. Lets say worse cases scenario you bought the graphics cards for the top end price so you are all in for $126 000. I am a figures type guy so I am not technical but this makes more sense working it out like this as worse case scenario.

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Depending on whatever country you are living in this set up would generate as of the first week of January this year between $10 000 and $27 000 monthly in Bitcoin. This is all about the price of the coin depending on how much you really make. As of January the owner of this rig was making $900 plus per day. Overall a huge ROI and one that could be paid off in 6-7 months after deducting expenses like electricity.

If you were mining Ethereum each card can mine with a hash rate of 83.57 MH/s generating 0.222 Eth per month. This is 17 Eth at whatever the market price is and lets say $1200 for arguments sake to make it easy that is $20 400 less electricity costs. Where the owner of this rig lives that was a deduction of $2000 per month netting him somewhere in the $18 000 plus range for the month. He could pay this off within 7 months which is a fantastic ROI.

I believe after reading various articles that mining will still be profitable for someone who knows what they are doing and buys the top of the range equipment available. Things change all the time so upgrading would need to happen regularly otherwise you would miss out on better hash rates which would cost you at the end of the day. Bitcoin and Ethereum look as though they could maintain their value compared to what has happened from previous years. This mine would still be profitable even if Ethereum lost 60 percent of it's current price.

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