Jump to content
Search In
  • More options...
Find results that contain...
Find results in...

At what point does cryptomining become not profitable?

I'm wondering how low coins like bitcoin and ethereum for example have to go before most miners would theoretically not be able to break even anymore. As this is the most likely point where we will see them start to jump ship and get out before they take losses.

Link to post
Share on other sites

It'll depend on cost of electricity. Cost of electricity is more than earnings from mining then it's not profitable. 

Electricity costs different amounts in different places so it might not be profitable in one country while staying profitable in another.

I'm not actually trying to be as grumpy as it seems.

Project Hot Box

CPU Ryzen 7 5800x, Motherboard MSI MPG B550I Gaming Edge Wifi, RAM CORSAIR Vengeance LPX 32GB 3200mhz (2x16), GPU AMD Raedon 6800 XT FE, Case Silverstone RVZ03B, Storage CORSAIR Force Series MP510 1920GB NVMe, CORSAIR FORCE Series MP510 960GB NVMe, PSU CORSAIR sf600, Cooling Noctua NH-L12S, Displays LG 34UC98-W 34-Inch, 32 inch curved that I can't find the model number for right now; UPerfect 7 inch LCD Aida64 Display, Keyboard Corsair K95, Mouse Corsair Nightblade, Sound AT2020+ USB Mic, Massdrop 6xx headphones, Schiit Magni, Modi Loki mini stack. 

Oppbevaring

CPU i9-9900k, Motherboard, ASUS Rog Maximus Code XI, RAM, 48GB Corsair Vengeance LPX 32GB 3200 mhz (2x16)+(2x8) GPU Asus ROG Strix 2070 8gb, MSI 1070 Gaming X 8gb, Case Phanteks Enthoo Evolv X, Storage Samsung 860 Evo 500 GB, 5x Seagate IronWolf 8tb NAS(ZFS1), PSU Corsair RM1000x, Cooling Asus Rog Ryuo 240 with Noctua NF-12 fans, OS Unraid

 

Why is the 5800x so hot?

 

 

Link to post
Share on other sites

When the price to power and cool those cards is close to, equal or higher than the price of the amount of crypto they can mine.

Link to post
Share on other sites
11 minutes ago, WillOfTheLand said:

I'm wondering how low coins like bitcoin and ethereum for example have to go before most miners would theoretically not be able to break even anymore

in term of fiat, right now it's about 10-20% lower compared to when btc is at 55k-ish

during the drop, the profitability spiked to 200-300% (peak was 400%)

so u can roughly say crypto prices doesnt have much to do with profit directly, trading volume does (?)

 

the profit margin for 0.1$ per kWh is around 1000% ($10 of crypto from $1 of electric)

image.png.b02486413e810af34292049b2929e0d8.png

number for a typical 3080

 

so profitability have to drop by about 80% ($2 of crypto from $1 of electric) before people think it's not worth it, i guess?

 

some people continue mining even when it's break even (1:1), to hodl on the coins for peaks in crypto pricing

ie, my GPU may be doing $1 a day in late 2018, but if i hodl onto it until 2021, it's actually $15 a day back then, if that makes sense

My PCs: Desky | Beddie | Miney | Benchie

Things I need help with: (nothing at the moment)

Spoiler

none atm

I hate Intel's pricing, Ryzen's weird quirks, Nvidia's pricing, and Radeon GPUs in general

Spoiler

Products I like:

Spoiler

Sony Xperia Z1 / Z2 / 10 ii, Asus Strix 970 / 1070, Samsung SSD, WD HDD, Corsair PSUs (AX, RM, CX(grey)), GeForce GPU, NZXT N450/S340, be quiet! Coolers, G.Skill Trident RAM, Logitech M525, Logitech G440, Razer Deathadder Elite

Products I hate:

Spoiler

Xperia Z3, XiaoMi 5c, Radeon GPUs, Razer Audio Products, any bloatwares

Companies I absolutely adore: (and hope it stays that way)

Spoiler

be quiet! - sent me AM4 mounting for my DRP3 even though it's way past the timeframe stated, no questions asked

Corsair - very good RMA experience, absolutely recommend

Companies I hate:

Spoiler

Nvidia, Intel, Apple, TMT (Thundermatch, a retailer)

Personal Blacklisted Companies:

Spoiler

Acer: shit tier quality products, shit tier customer service thus far, they "tried" to solve my issue but they arent really doing anything but delaying and delaying. (on-going case since July)

Gigabyte: horrible customer service (gigabyte had literally 0 customer service, asked me to go to retailer with NO WAY to email them about a question) but at least they fixed my shit in ONE MONTH (would probably take me 1 hour to fix if they let me email them)

XiaoMi Phones: built like a tank but the software is buggy as all hell

Seagate HDD: had too many dead seagate drives

Kingston SSD: 300V controller swap thingy

Razer (except their mouse)

Remember, just because I had good/bad experiences with these companies/product, doesn't mean you will have similar experiences too. I would still recommend these products if they made sense for your needs, but I'll add a disclaimer of my experience if it's relevant. Feel free to DM me asking why they are where they are.

 

Link to post
Share on other sites

There is a difficulty factor in the algorithm that's adjusted all the time automatically, to make coin generation take at least some amount of time (ex one block added to the chain every 5 minutes, and each block rewards miner with some amount of coin ..ex 2-3 ethereum + a transaction fee from every transaction stored in the block ) 

If a bunch more people add mining power, then the difficulty is increased, if less people mine the difficulty will decrease.

 

As long as it's profitable to mine a coin people and companies will add hardware to mine, which will increase difficulty and that will make mining harder, which means you need more powerful mining hardware to stay competitive.

 

That's what happened with RX 4xx and RX 5xx cards from AMD - they were good a few years ago, but so many people started mining when it was profitable, that the difficulty jumped up and made the cards work more for the same amount of coin.  Also, the algorithm finally crossed the threshold of around 3.8 GB of data, so 4 GB cards can no longer hold all the data required to mine in VRAM so they'd be very slow at mining, having to constantly retrieve data from RAM instead of VRAM ... 

 

If people stop mining because it's too difficult, you're still gonna have people that mine simply because it's free electricity, and the hardware is bought, so for them it's profit. 

 

There's also companies or groups of people that practically bought or made hydro plants that generate excess power and they use this excess power for mining and to recover their initial investment - picture for example a small village somewhere with a hundred families or so, and a few people got together and installed a small hydro plant ... those 100 families won't consume that much power, so the excess can be used to mine and pay the loans for the power generators.

 

Coins like Ethereum are also working on methods of validating the blockchain that don't involve mining - instead you use a client software to validate transactions and you're rewarded with a small transaction fee.. they're hoping for something like 8-12% profit if you're participating as a validator (you have to stake some coins you own and if you're a good validator and do the job, at the end of a year or after some time passes, you get some rewards, like dividends... if you're attacking the network or otherwise try to cheat the system and let bad transactions go through, you get fined and potentially lose the coins you staked) 

Link to post
Share on other sites

I have 100% free power and all my equipment is paid off, I hit my ROI about a year or two ago and cashed out some coin to fiat so it is a real ROI since i got the cash in hand from it. So i will keep mining as long as my equipment keeps running. Most of my mining profits i just hold, or if i need some cash for something like car repairs or upgrades i just cash out a little.

My ASIC's do put out a lot of heat and even though I have them sitting in a door jam exhausting directly outside my garage still gets super hot and when it hits 110f 2 of them will stop working from overheating errors so I lose about 5 hours a day in the middle of summer. But its fine as power is free its all profits anyway.

For most people it is a line they have to juggle between the profit they can make and the money they spend on power and cooling and staff if its a large farm. Back when i started mining BTC i was making 0.02BTC a day with only 3x S9's now i have 3 S9 and 3 S15 and i get 0.01BTC every 2 weeks. As the difficulty goes up the profits die down and the expenses stay the same.

 

 

eth.thumb.JPG.e637c07b8b860c932d43803eb818b09c.JPGbtc.thumb.JPG.c63dd764db895f3e0104ffe7beb406fc.JPG

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×