This week, Avram Piltch discusses the amount of time it takes to break even on crypto mining and why it’s a terrible time to get involved.
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Cryptocurrency mining has been all the rage over the past few years. Bitcoin and Ethereum, in particular, have seen massive price increases, which has led to a renewed interest in cryptocurrency mining. Is it still profitable? What are the best mining GPUs? In this episode of the Piltch Point podcast, we take a look at cryptocurrency mining and answer these questions!
What is crypto mining?
Mining cryptocurrency is a process of verifying and recording transactions on the blockchain. In order to mine cryptocurrency, you need a powerful graphics card or ASIC chip. Bitcoin and Ethereum are currently the most popular cryptocurrencies to mine, but there are many others out there as well.
Cryptocurrency mining is an incredibly competitive field and requires a significant amount of time, energy, and money to be successful. If you’re looking for cryptocurrency mining GPUs or cryptocurrency ASIC chipsets, there are plenty of options available on the market today.
What specs make a good mining rig?
When looking for cryptocurrency mining GPUs or ASIC chipsets, it’s important to keep the following in mind:
– Hashrate: This is how many hashes per second your card can generate. Higher hashrates mean more cryptocurrency mined per unit of time.
– Power Consumption: This is probably the most important factor when determining cryptocurrency mining profitability. Some cards use more power than others, which will affect your profit margin significantly over time! If you’re looking for cryptocurrency ASIC chipsets, be sure to check their efficiency ratings as well (some manufacturers may even include this information on their websites).
Does cryptocurrency mining still make sense in 2022?
The short answer is no – probably not anymore (unless you’re willing to put up with some serious heat). In order to mine cryptocurrency effectively enough that it’s actually worth your while, you need a graphics card with at least two gigabytes of video memory and any kind of CPU from Intel or AMD. Mining cryptocurrency is no joke! You also have to consider how much power these cards consume when running at high clockspeeds. That’s why cryptocurrency miners are always on the lookout for new, more efficient hardware.
There are a few newer GPUs that offer some good mining performance, but they come at a significant cost premium. But, with chip shortages causing the availability of graphics cards to be reduced, the costs have gone up as availability has gone down. Mining rigs have made the problem even worse, and some manufacturers have gone so far as to prioritize mining because they buy in bulk. If you’re not too worried about getting the absolute best performance, there are plenty of other options out there as well.
Even if you can get a card (or two or three) for a decent rig, it can take years to break even. Tom’s Hardware has created estimates on how long a rig will take under optimal conditions to pay for a single video card at retail rates, and the results aren’t great. For most cases, it will take nearly 18 months. In most cases, it’s several years.
But, you have to remember that these cards are not designed to be running at 100%, 24/7. Even if you were running an intense videogame and switching out players every few hours, running the computer all day every day, the card would still not be under these intense conditions. As such, cards can wear out in a year or two when mining, meaning they’re dead long before you break even on them. So, while it might appear that you’re making money, you’re in the hole even before you begin.
So, in essence, if you are thinking about getting into the mining game right now: Stop. Turn around. Go home. There’s nothing for you here.