Over the past 3 years Bitcoin miners have experienced a roller coaster of emotions when calculating profitability. The Bitcoin miners who performed the best were those who got in early during or before 2016 and were rightfully rewarded when the 2017 bull run came along. However those rewards did not come without major risks. The price of Bitcoin during 2016 was hardly high enough for miners to reap the benefits at the time.
Post the Bitcoin bull run in 2017 many miners set up shop on too large of a scale and unfortunately were burnt by the correction in BTC price during 2018. This correction instilled immense fear in the mining industry and resulted in major BTC mining farms powering down.
So what does Bitcoin mining profitability look like today in 2019?
How do you calculate Bitcoin mining profitability?
To understand what profitability looks like at the moment it is essential to understand what actually affects the profitability of Bitcoin mining. Here are the major factors that affect Bitcoin mining profitability.
- The price of Bitcoin
Without a doubt the price of Bitcoin will have a major influence on Bitcoin mining profitability. When Bitcoins price increases the value of the coins mined become far greater and therefore profitability increases. However, the increase in profitability is far greater for miners who have been mining for months before the price increase. This is because these miners have already got a stack of Bitcoin that they mined at lower prices, and they now have the coins to sell at a higher price.
- Network hash rate/difficulty
Hash rate is the amount of computations (hashes) that are being submitted to the Bitcoin Blockchain. It is a miners hash rate which determines how many Bitcoin they will mine. There is a fixed amount of Bitcoin rewarded for every block of bitcoin that is created, and therefore the more miners that are on the network, the less reward there is to share.
- Mining equipment
There are two major factors to consider when purchasing mining equipment. The hash rate and the power draw. Currently Mining Store has access to miners which submit 65 tera hashes per second (TH/s) and these miners draw about 3300 kwph. A 65 TH/s Bitcoin miner would generate $14 USD worth of Bitcoin per day before power costs.
You can view the live Bitcoin profitability calculator with this link: https://bit.ly/2lUkpLH
So is it profitable to mine BTC right now?
Bitcoin mining right now is quite profitable based on daily returns staying at $14 USD per day for the next year. However if you look at the profitability on a long term projection, profitability could be far greater based on historical performance. Mining Bitcoin right now in 2019 could be similar to mining Bitcoin back in 2016 just before the 2017 bull run.
Consider the following scenario as an example of how profitable Bitcoin mining could be.
Bitcoin is currently at around $10,000 USD per coin. Today a miner can produce around $14 USD per day worth of Bitcoin. The table below demonstrates how much revenue a Bitcoin miner can make a year based on following two different strategies.
Strategy 1 (Blue): This involves converting the Bitcoin into USD on a daily basis.
Strategy 2 (Green): This involves holding the Bitcoin until it reaches one of the three hypothetical target prices.
How can I get started mining Bitcoin?
If you are looking at these results and thinking to yourself, “I can see Bitcoin’s price reaching 20k USD or higher again” then Bitcoin mining is something you should strongly consider getting into. Mining Store and our community are very bullish on Bitcoin and we are fortunate enough to have strong trade relationships with the suppliers of the best Bitcoin miners on the market.
If getting exposure to Bitcoin and cryptocurrency as well as setting yourself up with a passive income sounds appealing to you, then be sure to fill out our enquiry form. Once we have received your enquiry we will get in touch with you and ensure we set you up with a mining solution that suits your needs.Bring on the next bull run!