Will it be profitable to mine Bitcoin after the halving? Yes…if you do this


The countdown to the Bitcoin halving has already begun. The estimated date for this event is April 20, 2024, and the entire industry is waiting for what will happen next, especially one group in particular: the miners.

Many long for the arrival of the halving due to the impact it usually has on the price of bitcoin (BTC). History has shown that, after the mining reward is halved, the price of the cryptocurrency skyrockets exponentially and a bull run begins. Simply put, traders make more money.

But, in the case of miners, the story is somewhat different. The halving is synonymous with concern for them. With their reward reduced, they must look for ways to become profitable over time And not die trying.

So, if you are a miner or plan to enter this business, you must take certain measures to stay in the race and make Bitcoin mining profitable for you after the halving.

Let’s start with the basics, mining equipment and electricity.

The cost of electricity and mining equipment are determining factors

This is the first point to keep in mind if you want to make money by mining Bitcoin. Without the right equipment or with too high an electrical cost, you better pack your things, we are sorry to tell you that you have no future here.

Regarding the issue of electricity, the Hashrate Index company made a calculation to determine what would be the maximum cost of electrical service that would allow you to continue mining Bitcoin with specific equipment.

According to the company, the Antminer S21 is the most efficient model, as it would allow you to make a profit even if you pay USD 0.099/kWh for electricity. At the bottom of the list is the M30S model, which would only be profitable if the electrical cost does not exceed USD 0.046/kWh.

Electrical consumption cost table per miner.
Calculation of the profitability of mining equipment based on the cost of electricity from Hashrate Index. Fountain: x.

Depending on the country you mine in, you can still be in the game or not. For example, the cost of electricity in the United States or Europe is usually much higher than in some countries in Latin America and Africa. That is the reason why an exodus of Bitcoin mining equipment to regions with a lower energy cost has begun, as reported in CriptoNoticias.

In summary, The more efficient your mining equipment is and the lower the electrical cost in your region, the more likely you are to be profitable. after the Bitcoin halving. Now, that’s not the only important factor to succeed in this world.

Don’t be a lone wolf, as a team your chances of winning increase

Another fundamental variable is the mining power or hashrate. When it comes to mining, minnows usually don’t survive in a sea full of whales. If your hashrate is very low, you will have practically no opportunity to mine blocks because others with more mining power will beat you to it.

According to data from Hashrate Index, more than 50% of the mining power is concentrated in three large mining pools: Foundry USA, ViaBTC and AntPool. Their hasrate is 29.2%, 12.8% and 11.4% respectively, at the time of writing.

To be honest, it is difficult to compete with these industry giants. In this case, you could apply the “If you can’t beat them, join them.” If you contribute your hashrate to one of these mining pools, you are much more likely to make substantial profits compared to those who are lone wolves. Of course, make sure you know all the terms and conditions of the company in detail before joining, especially what has to do with settlement methods.

For example, in the case of ViaBTC, you can find out these types of details on their website. And a pearl of wisdom: the mining pool has a free yield calculator. In addition to BTC, it allows you to calculate profitability for many other coins taking into account the asset price, difficulty level and PPS rate. Go and check out this tool.

Miner, make artificial intelligence your ally

Taking advantage of the fact that we are now in the boom of artificial intelligence (AI), this technology can also be very useful if you are a Bitcoin and cryptocurrency miner. And how exactly?

AI has become the oasis of GPU miners. Little by little, large mining companies have adopted this technology to increase their profits. An example of this is Core Scientific, which reached an agreement for USD 100 million to provide infrastructure and data processing to a company that offers AI services. Hive Digital, Bit Digital and Northern Data are other companies that have joined the trend.

Those miners who will inevitably become unprofitable after the halving can give their GPUs a second chance. If they take their GPU power and put it to use in AI servers, the profits will probably not be long in coming.

To show a button. Hive Digital used only 2% of its 38 thousand graphics cards to dedicate them to AI servers and obtained profits of USD 250 thousand in the first trimester. Impressive, right? This confirms that artificial intelligence is one of the industries with the greatest economic projection today, and it could become your lifesaver if you give it a chance.

The content and links provided in this article are for informational purposes only. CriptoNoticias does not offer legal, financial or investment recommendations or advice, nor does it replace the due diligence of each interested party. CriptoNoticias does not endorse any investment or similar offers promoted here. For more information visit our Disclaimer.

Leave a Reply

Your email address will not be published. Required fields are marked *