Does mining have a future?

Mining has been booming in recent years. Of course, bitcoin has both risen and fallen, but the electricity costs have increased 20-fold, while the revenue has increased 18-fold in 4 years.

But it’s important to note that the falling rate makes mining a lot harder, hash rates increase and values can reach maximum, even record highs. But this is what has influenced the decline in activity. If you take the bitcoin value of 20 thousand euros, the profitability of such enterprises is close to the cost of production, and sometimes it even goes into deficit.

But even with the drop in profits, the industry is still going strong. But what should we expect in the future?

The cost of electricity

This factor plays a key role in mining right now. And companies that have set up mining data centres in places other than where the cost of electricity is minimal are currently suffering serious losses.

And now there is an opportunity to turn a profit only if the price of electricity is low and energy efficient equipment is used for the operation. But if the exchange rate continues to fall, it is very likely that such centres will simply shut down, and that will cause problems.

Revenues at this stage

After complicated mathematical calculations on the example of a British centre, taking into account the expert opinion that bitcoin will be worth about 100 thousand euros next year, the net profit including electricity consumption from one miner amounts to 6.9 thousand euros. 

But only if the coin grows in price to these sizes, we can guarantee a good profit.  All calculations were not based on the latest equipment, and on today’s market there are more improved models. So, if you approach this process wisely, you can make a good profit.

Mining forks of Ethereum

It is important to note that this cryptocurrency switched to Proof-of-Work, which also had a negative impact. And it primarily affected the hardware, and even if you switch to mining a different kind of currency, the profits will still be lower.

And now we cannot say that mining on video cards will become profitable again, so it is worth considering other options.

Cryptocurrency regulation

And at this level, there is a lot of work going on today aimed at legalisation. In fact, everything has been discussed for more than a day, but due to the geopolitical situation, there are some complications.

It is believed that it is now appropriate to allow cryptocurrency mining only in regions with an overabundance of energy.