Can You Still Mine Bitcoin and Other Crypto From Home?
As crypto becomes more institutionalized, with big mining companies building industrial-scale facilities, the question arises: Can you still mine your own coins from home and make a profit? The bear market has made mining less profitable, but the cost of expensive mining equipment has also dropped. However, rising electricity prices have made mining economics challenging for small-time enthusiasts. CoinDesk explores the possibilities for home miners today and finds little encouraging news. Home miners struggle to make money in this market and it’s likely to remain a niche even in another bull run.
Main Points:
- Mining equipment costs have dropped, but electricity prices have risen, making mining less profitable for small-time miners.
- A home miner in Texas, Garrett Casada, is holding onto his coins because selling them wouldn’t even cover his electricity costs.
- Another miner, Gerald Glickman, built a water-heating system for his pool to utilize the excess heat from his bitcoin miner.
- Will Foxley, a former director of content at Compass Mining, is mining at a loss and believes home mining is not sustainable as a business.
- Despite the challenges, small miners can work together to maximize their operations.
Hot Take:
Home mining of cryptocurrencies like Bitcoin may still hold appeal for cypherpunks and enthusiasts, but it’s increasingly difficult to turn a profit. Rising electricity prices and the cost of equipment make it challenging to break even, let alone make a significant profit. While there may be some creative solutions, such as using excess heat for other purposes, home mining is likely to remain a niche activity. The days of easily mining and profiting from crypto at home are largely over, and it’s more practical to buy and hold coins directly.
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