Is Bitcoin Mining Still Profitable in 2020?

Since reaching its lowest value in 2020 in March, the price of Bitcoins has been on an upward trend, with the main cryptocurrency more than doubling in the last five months. At the same time, the hashrate has increased by more than 25% since March. It has recently reached its highest values. In May 2020, Bitcoin also completed its third halving, halving the amount of BTC mined each day. Is Bitcoin mining still profitable in 2020 due to these factors?

Difficulty of mining increases over time

In short, the difficulty determines how much work a miner has to spend to solve a complex mathematical problem that allows him to add a new block of transactions to the blockchain. This difficulty increases or decreases after every 2016 blocks, or about every 14 days, depending on how quickly the previous blocks were found – all with the goal of returning the average block discovery time to 10 minutes.

As the hashrate increases over time, so does the difficulty – making it harder for miners with older hardware to keep up. However, because the price of Bitcoins also rises after an increase in hashrate, increasing difficulty does not always mean reduced profitability. There are several steps miners can take to accelerate their return on investment (ROI) and maximize profits.

Profitability of Bitcoin mining depends on several factors

One way to maximize your chances of profitability is to get the latest and most efficient mining hardware at a reasonable price. Those who want to make a profit by investing in new mining hardware will need to consider the price and cost of transportation (and any delays), import taxes, and electricity costs associated with operating their new hardware. The ideal miner is energy efficient and offers an excellent rate of hashrate.

According to CryptoCompare’s mining profitability calculator, 1 TH/s of hash rate will generate approximately 0.00000742 BTC, or around $0.08639 per day in profit at Bitcoin’s current value ($11,763). Because of this, a 73 TH/s Antminer S17+ would pull in around $6.30 per day, while a 112TH/s S30 M++ would bring in around $9.68/day.

However, miners have to deduct their electricity and maintenance costs, which can vary considerably depending on the country and the energy costs to which they have access.

Assuming an average power consumption of 30W/TH/s and an average electricity cost of $0.10/KW, Bitcoin miners can expect to pay close to $ 0.072 per TH of mining power each day. That works out at $5.26 for a 73 TH/s miner or $8.10 for a 112TH/s one.

Given that electricity costs account for a significant portion of bitcoin mining, the fastest way to increase profitability is to secure a low-cost energy plan or set up alternative sources.

Miners must also take their acquisition costs into account to determine how long it will take for them to achieve a full return on their investment.

With most bitcoin miners costing thousands of dollars, it can be said with confidence that most miners will not achieve a full return on investment – but may be able to recover some of their initial costs by selling used miner when buying newer equipment.

Is Bitcoin Mining Still Profitable in 2020? If you have access to cheap hardware and electricity, then Bitcoin mining can still be a profitable endeavor.

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