The latest slide in cryptocurrency prices has caused the mining of these coins to be less favourable. For this month, the most favourable cryptocurrency to mine on the SHA or SHA-256 algorithm is Bitcoin Cash, but we are going to look more closely as to how profitable this is.
Some currencies, namely earth hash currencies are more profitable than the above one, Bitcoin Cash is more conventional, which increases its popularity. Miners just need to set it up, and then they can leave it to mine. The downside to this is though that it does become very expensive. You can currently use any miner for Bitcoin Cash that you can use for Bitcoin. One of the more popular ones is the Amp Miner S9, as it is incredibly powerful. Although the initial price of them can be expensive – approximately $4,000, they are readily available. The drawback is though that they can get very loud and hot so are not suitable for small rooms.
A question that people often ask when it comes to mining cryptocurrencies, is it difficult to do? Whilst this varies from currency to currency, the difficulty level for Bitcoin Cash is actually quite low, and has not been rising like Bitcoin has.
So let’s have a look at the costs that are involved. Tech Crypto House have discussed an example of how much it would cost to get mining Bitcoin Cash using the S9 Miner. This mines at 13,500 gigahashes per second, and uses 1,300 watts of power. Let’s say that the power costs 13 cents per kw-hour and the pool fees are set at 1%. The hardware itself costs around $3750. When you total the costs and work out how much you could mine, it works out that it would take 653 days just to break even. This equates to nearly 2 years just to break even, before you even see a hint of a profit. Not great really.
Consider as well that they were basing this example on the most profitable miner that is available right now. This means that you would have to make a profit of over $2000 each year. We have to mention again that Bitcoin Cash is one of the most popular cryptocurrencies to mine right now as well. In order to make a profit, cryptocurrencies will have to rocket up in price again, to prices that match the end of last year. Some experts believe that this will happen however, even then it will take you a long wile to make a profit from mining.