Why it’s time to stop mining cryptocurrency and look to the future of blockchain
If you simply look at the resources used in cryptocurrency mining the statistics are astounding. The energy consumption of millions of GPUs and ASICs running across the globe is wasting our valuable resources and producing tonnes and tonnes of carbon emissions. These resources are being used all for a completely speculative market to compute algorithms that produce nothing tangible and could come crashing down at any time. The cost of running most mining rigs today is almost equal to the daily payout.
If you look at the math at how long it will take if you were to purchase mining hardware today, you would be lucky to break even, if ever. The speculation that crypto markets will go up and won’t be crushed by governments, banks and regulation is not worth the investment risk.
Myth: Your mining hardware will retain its value.
The thought that this hardware will retain its value is already proving to be false. People are already selling off their used graphics cards for 60–75% off of MSRP depending on where you look. Gamers are often hesitant to purchase a mining card due to its usage.
If you didn’t get into mining crypto until the Great GPU Shortage of 2017–2018, you probably paid above MSRP you are unlikely to ever make that money back.
Let’s show some math
A mining rig with eight 1070TI graphics cards could produce around .00189 bitcoin a day around 2 months ago. That’s $4000–4500 in hardware. Now that same hardware only produces around .00150 a day just 2 months later. As newer graphics cards come out these high cost mining rigs will produce less and less every day. At today’s bitcoin price of $7,300 this eight card 1070 TI rig could produce around $11/day before electric costs.
$4500/$11/day = 409.09090909 days
It will take you well over 410 days to see yourself break even assuming the difficulty/price remain the same AND your electricity cost is 0. The reality is that this will never happen unless cryptocurrency market flips its current trend and skyrockets and others decide not add additional mining machines.
Unfortunately you can find calculators across the web falsely proclaiming that your hardware is profitable! What these calculators leave out is the unrelenting diminishing returns.
If this hasn’t convinced you to not start cryptocurrency mining in 2018, I’m not sure what will. Purely speculative assets are exactly that: speculation. Invest your money in something more tangible than computer hardware running calculations you can’t explain to yourself or your parents.
The future of blockchain and cryptocurrencies
Crypto markets will be wild throughout all of 2018. There are plenty of opportunities to make money and lose money. Personally I will be focusing my energies on finding applications and integrations for blockchain and applying them to existing markets and technologies. The decentralization of trust sources and making these chains transparent will begin to disrupt many industries in the coming years. It’s an exciting time and the future of crypto and blockchain technologies still look very bright.
I am not an investment advisor and none of my this should be taken as investment advice. The above article is purely my educated opinion based on research and experience.