With 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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