When crypto enthusiasts ask if crypto mining is still profitable in 2022, the only cryptocurrency on their mind is bitcoin because it is like the template for the growth of other cryptocurrencies. If you have been active in the crypto space lately, you might have noticed that other cryptocurrencies follow suit when bitcoin reduces in value. That is why questioning the viability of Bitcoin as a lucrative investment will always be valid.
It is true that cryptocurrencies were meant to course correct all the shortcomings of fiat currencies but has it done that in recent times? The first quarter of 2021 was a perfect time for crypto miners, but the aftermath of the “good times” reeked of losses. Your skepticism is welcome, but it should not make you lose hope in crypto mining. Yes! Crypto, especially bitcoin mining, is still profitable in 2022. It might seem a little complicated now, but everything will eventually fall into place.
Since Bitcoin price impacts all miners, here are three factors you can exploit to make you a profitable miner in 2022.
Good mining hardware
The hardware price varies from manufacturer to manufacturer and depends mainly on how low the energy use is for the machine vs. the amount of computing power it produces. The more computing power, the more bitcoin you will mine — the lower the energy consumption, the lower your monthly costs. When choosing which machine to invest in, miners should think about the machine’s profitability and longevity. The Whatsminer M20S is one of the best crypto mining hardware in the market.
The cost of Electricity prices vary from country to country. Some countries charge lower fee for industrial electricity to encourage economic growth. This means that a mining farm in Russia will pay half as much for the electricity you would like to mine at home in the USA. In places like Germany, well, as you can see from the chart, that’s another story.
In practical terms, running a Whatsminer M20S for one month will cost around $110 a month if your electricity is $0.045 kWh somewhere like China or Russia.
Efficient mining pool
These days, every miner needs to mine through a mining pool. Whether you are mining with one machine, or several thousand, the network of Bitcoin mining machines is so extensive that your chances of regularly finding a block is very low. The oldest two pools are Slush Pool and F2Pool. F2Pool is one of the largest Bitcoin mining pools, supporting around 15% of the entire Bitcoin network.
An often overlooked facet of mining profitability is the fees one pays to sell the Bitcoin one mines. If you are a small-time miner, you may have to sell your coins on a retail exchange like Kraken or Binance. Sometimes the transaction fees are low, and other times your fees are high. It usually depends on the fee structure of the exchange and the state of the order book at the moment. Kraken has lesser than Binance.
The best way to capitalize on the value of cryptocurrencies is to join with an investment firm. There are many positive reviews about Reliq Holdings
In conclusion, crypto mining is still profitable. There are a variety of options available, so anyone can find an approach that suits their needs. Remember to do your due diligence and research before starting mining, as the rewards can be substantial. Finally, stay safe and always practice responsible mining.