Is it worth mining crypto coins in July 2018?
In February, there was a major expansion of miners all over the world, and this week, New York State launched a rebate program for companies that mine crypto coins *. However, is it currently profitable to mine, even downtown? Why does the multi-currency hashrate keep going up and up every day, even with bitcoin values falling?The first account to be made, when starting to mine, is the return on investment, or ROI. Electricity cost values should also be taken into account, as well as the dollar rate, however, you will need to make accounts with very abrupt margins, as the cryptos market is very volatile, much more so than assets on the stock exchange. The risk is imminent, even so, every day, more companies appear to start mining operations, so, is it worth mining crypto coins in this low?
As a reference to the cost of electricity, we use the city of São Paulo, through the company AES Eletropaulo, with the cost of residential energy. Even with recent increases, to find out whether mining is profitable or not, the most expensive electrical cost is initially considered.
In December 2016, the cost per kWh was R $ 0.55. Currently, in July 2018, the cost for the same consumption is R $ 0.65. In April 2017, there was the lowest value, of R $ 0.37 kWh, using the same consumption in kWh in the month, without many variances.
In March 2018, before the recent increase, it was R $ 0.61. However, the dollar was R $ 3.40. The cost of the kWh in USD is US $ 0.17. Now in July, the kWh is R $ 0.65 and the dollar at R $ 3.80, the cost of the kWh in USD is US $ 0.17. In other words, the price of energy, even with the increase, remains in the same calculation. For the sake of miscalculations, let's say that energy is $ 0.20, a good margin for calculating profits.
Based on the electrical price, which is the main means of knowing whether there is profit or not when mining, there are several sites on the internet where you can put what type of hardware you have, the electrical cost, and generate the values and profits directly for each currency.
We used the whattomine.com website as a reference, which is excellent for these calculations, observing the difficulty of the currency (the number of miners in the network, the more miners, the more difficult it is to make gains), and its current gain, in comparison to its value. automatically by major exchanges in the world.
Whattomine site showing that mining on the Ethash algorithm, with 8 RX 570 cards can generate $ 7.52, with $ 2.91 profit using NiceHash.
Nicehash (nicehash.com) is a site that allows people to sell computing power to people who buy mining contracts, and it is slightly equal to the profitability of the currency itself in a good mining pool.
In the calculation, the automatic selection of the site was used, for 8 RX 570 video cards, which has a good price today. This model is usually found with the size of 4GB. For mining in Etherum (Ethash / Daggerhasimoto), it is essential to know the memory size of the video card, since the algorithm, unlike Bitcoin or other currencies, it generates a large file before starting to mine, called Dag file, allocated completely in the video card's RAM memory.
Bitcoin, and other currencies, do not appear on this list, because the mining difficulty is so high, that mining with video cards, are not even profitable, because the level of difficulty is so high, due to large companies that invest in mining on specific hardware. The network hashrates are counted in petahashes, and there is no pool to mine that is worthwhile, unless you have specific hardware, called ASICS miners.
But, this tutorial, is aimed at those who will mine at home, and not in large industries as with the bitcoin network, and alternative currencies allow any machine to be profitable.
The profit with 8 plates then, is US $ 2.91 currently, even in the low, free of energy cost, since this cost has already been added on the website, with a good margin, as if the energy cost were US $ 0 , 20.
So US $ 2.91 per day x31 = US $ 90.21, and converting to R $ 3.90 of the dollar would be R $ 351.81 of free profit.
Kabum website promoting the RX 570 with 4GB of memory for R $ 1,199.90. (link)
To buy the plates, you spend, if you find good deals, as above, for R$ 1,199.90, and if there are 8 plates, they would be: R$ 9599.20.
The price of the machine to include so many video cards, costs in general around R $ 3000.00. The items are:
- PCI-e riser cards (8 cards 8x R $ 50 = R $ 400)
- Motherboard, (R $ 500)
- Processor (R $ 500)
- Memory (R $ 400)
- Power supply of at least 1800 W real. (R $ 1200)
Approximate cost: R $ 3000.
The total cost would be around R $ 12,599.20. The ROI, which is the return on investment, for the profit to pay for the machine itself, would be approximately 36 months, or 3 years. (Profit R $ 351.81 month).
In other words, is it worthwhile to start mining even downtown? Maybe so, but the return on investment is very low, but even so, it can be worth much more than savings.
Investment: R $ 12,599.20.
36 months in cryptocurrencies: total return of R $ 25,264.36, and total real profit: R $ 12,665.16.
There is a depreciation in the cost of the machine, but it will be paid at the end of 3 years, and what to sell, at any price, will be free profit.
36 months in savings at 0.5%:
In the first month you will earn R $ 63.00
In the 36th month, you will earn: R $ 75.39.
At the end of 36 months, the amount in savings will be: R $ 15,077.22.
The total real return would be R $ 2478.00.
If I had invested in cryptos, I would have had a computer at the end of the period, and even with the depreciation of the machine, I could still sell for a value higher than the return on savings.
Even in the low, it is much better than 0.5% per month, but old gains are not guarantees of future gains in any way, the crypt market is extremely volatile and results from numerous risks on a daily basis, that is, it serves only as example model for you to see that this month, it can be, in a way, profitable for those who invested, even if little, but still much higher than savings.
That is why crypto companies still exist in droves, and many companies are still investing in improving hardware.
https://economia.uol.com.br/noticias/bloomberg/2018/07/13/estado-de-nova-york-busca-conquistar-mineradoras-de-critpomoedas.htm
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