Mining is a popular way to earn BTC, but is investing in mining equipment worth it? To answer this question, it’s good to look at both long-term and short-term costs and opportunities. This article covers general factors to consider at any point in time and a specific example based on the value of BTC in 2019.
Upfront and Continuing Costs
The question of how much Bitcoin miners make is complicated. There are several key factors that go into determining profitability. Although there might be other things to consider, here’s a short list you should be aware of.
Hardware Costs and Capabilities
The costs of mining equipment can vary greatly. From less powerful CPU rigs to high power ASIC miners, this is the largest upfront expense. While going with a cheaper rig might save money upfront, you will likely earn less BTC (or other cryptocurrencies) over time when compared to the more expensive options that are capable of producing faster hash rates.
Electric Costs (Location, location, location)
One of the biggest challenges to…