Bitcoin Mining – Is It Still Profitable?

bitcoinWith Bitcoin’s mining difficulty going through the roof, you do have to wonder with all these different ASIC’s and FPGA’s about to launch, is it still profitable to continue mining? Would it still be profitable in the future? These are questions you need to ask yourself before purchasing any mining hardware, be it ASIC’s, FPGA’s or mining contracts.

According to bitcoindifficulty.com, the next difficulty will be at 257,557,984, which would be a 36.07% increase from the current difficulty of 189,281,249. With the current exponential growth in difficulty, there must be a limit to it, right? Wrong, at least in the near future. As long as Bitcoin’s price remains stable or continues it’s steady price growth, more miners will continue flooding the network. Higher hash rates = higher difficulty. So this almost guarantees an ever diminishing decrease in mining profits.

According to mining.thegenesisblock.com, if you start mining 1 GH/S in October (2013) with no fees or costs at all such as electricity, the maximum amount you would make is $20.60 (USD) worth of Bitcoins. If you start mining in, say, December 2013, the maximum amount you will mine is $4.33. Not to mention the thousands of Terrahash units coming online in January-February would cause the difficulty to increase like crazy. Even if you use mining contracts, with many selling 1 GH/S for 1 year for as much as $30, that investment would never break even. Websites like cex.io allow you to purchase mining contracts as shares, with the current price at 0.18 BTC per GH/S. This may still be profitable as you could also sell back the shares and keep the amount it mined, but it’s still a gamble. The only way for mining to stay profitable is for faster miners to be developed.

In the beginning, CPUs were good enough for mining. Then came GPUs, but CPUs could also be used. Then came FPGAs as CPUs stopped being profitable. Then ASICs came in, with GPUs becoming less profitable. It is only a matter of time for a newer type of miner to be developed, a much faster and cheaper miner, for it to be profitable. Or of course, if Bitcoin’s price went through the roof, or if ASIC prices lowers dramatically.

Even though Scrypt coins can’t be mined using ASICs, the rewards may still be worth your time. Litecoin is still way more profitable than Bitcoin, at a tune of 603.97% according to coinwarz.com/cryptocurrency, and other altcoins are even more profitable such as GalaxyCoin being 3,644.23% more profitable (at the time of this posting), and you can then exchange them into Bitcoins. If you do not want to venture into the world of altcoins, then Bitcoin and other SHA-256 coins is your only option by merged-mining. Still, this is mostly speculation, and the only way to know for sure is to wait and see how the markets play out. Are you currently mining?

Tell us your stories, both profitable or not in the comments below.

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Posted in Bitcoin, Cryptocurrency, Information, Mining
7 comments on “Bitcoin Mining – Is It Still Profitable?
  1. Brenda says:

    Technically ASICs are already the end of the road. There’s no “next kind of miner”, only better ASICs with more efficient designs.

  2. Jason says:

    I have done intensive investigations and right now you will lose money on most miners, the only people winning will be the people selling the miners.

    This is based on a 20% increase every 2 weeks and at a price of $350 over the next year. Very few miners break even and a lot of people end of trying to cancel there orders.

    Even if you reinvesting the bitcoins into mining it lags behind.

    The best thing to do is just mine out with your current hardware then buy a new miner which will be far better for same price.

    It’s very risky and 20% increases every 2 weeks from next year is a modest prediction, it could be as much as 30% which means only 3 miners currently make profits.

    HashFast Sierra Batch 2 , HashFast Sierra Batch 2 and The Monarch from BFL, but this 3rd one hasn’t even shipped yet.

    Adding delivery and time delays you can start going into negatives very quickly.

    Its seems like buying bitcoins and holding onto them might be ur best bet.

  3. Bitcoin CEX says:

    I’ll be watching how cloud mining with CEX performs and returns. The GH/S exchange is an open market and a unique idea… think built-in hardware resale with cloud scalability.

  4. MadMiner says:

    It could be profitable if you mine Betacoins (BET) now that they are currently unknown and is still early.

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