Is Mining Crypto Worth It?

khaleelkazi in #hive-167922 • 2 years ago

In this clip from the Weekly AMA, we talk about Ethereum 2.0 and mining.

There are rumors that ETH 2.0 is coming out soon and the "date" is now officially on the board. For ETH miners, this is not very good news.

I personally am an ETH miner and have been one for years. I think ETH2 can be great for the space but from a selfish, miner perspective, ETH2 is not exciting.

A lot of people are not into mining crypto because of the increasingly difficult procedures endured to keep up with mining.

Mining is different from proof of brain and liquidity mining in many ways. One problem with mining is the continual reinvestment in mining equipment in order to keep your profitability up. This brings the question, does the market price of your assets - the mining equipment - increase to cover your expenses?

Another problem with mining is the cost of energy. This is why we see a lot of mining farms moving to places where energy is cheaper, like Kazakhstan.

We talk about this and more in this clip from the Weekly AMA!

About LeoFinance

LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.

Our mission is to put Web3 in the palm of your hands.

Twitter: https://twitter.com/FinanceLeo
Discord: https://discord.gg/E4jePHe
Whitepaper: https://whitepaper.leofinance.io

Our Hive Applications

Join Web3: https://leofinance.io/
LeoMobile (IOS): https://testflight.apple.com/join/cskYPK1a
LeoMobile (Android): https://play.google.com/store/apps/details?id=io.leofi.mobile
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
Polygon HBD (pHBD): https://wleo.io/hbd
Polygon HIVE (pHIVE): https://wleo.io/hive

Web3 & DeFi

Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:

CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
LEO Wrapping Bridge: https://wleo.io

Posted Using LeoFinance ^Beta

#eth #mining #oneup #ctp #vyb #proofofbrain #web3 #neoxian #leofinance

2 years ago in #hive-167922 by khaleelkazi

Sort:

howzat 2 years ago

And probably with Eth 2.0 the gas costs also will decrease.

Posted using LeoFinance Mobile

0.00 VYB

iskafan 2 years ago

Obviously, most of the equipment do not increase in prices to cover the cost. And the cost of electricity is high in most part of the world as you said.

But let me play the video and listen to the full gist. Maybe, I'll be convinced that mining crypto is worth it.

Posted Using LeoFinance ^Beta

khaleelkazi 2 years ago

The key to mining is to calculate and project costs/profits correctly.

These days, I prefer liquidity mining on Cub/Polycub and proof of brain mining on LeoFinance & Hive.

The days of hardware mining are coming to an end

Posted Using LeoFinance ^Beta

0.00 VYB

shortsegments 2 years ago

Sadly, I agree. I mined Z-Cash and Ethereum before the last bear market, and thought about it again during the most recent bull market.

But the cost of electricity, the noise, the heat and the ease of making money in DeFi demotivated me to build a miner again.

I built four, with 10 GPU motherboards, but only ran 8 GPU due to the cost of the GPU at the time.

In truth sometimes the exciting notions of building and running a miner are more pleasant then the actual emotions of running a miner. But the knowlege I gained is invaluable.

I guess it's a good time to buy GPU now, that miners are giving up due to lower price for crypto. So this would be the perfect time to start.

If only I lived in a state that would subsidize my electricity cost to promote cryptocurrency mining...

Posted Using LeoFinance ^Beta

0.00 VYB

readthisplease 2 years ago

I personally feel that mining, using proof of work is really out dated. Yes it was great 10 years ago but technology evolves and better ways of achieving things get invented. When mining your are investing and risking your money on electricity, hoping that the value of what you are mining pumps. It’s way more risky than proof of stake. Imagine spending all that money for electricity mining and the value of what you are mining keeps dropping. How do you keep up?

khaleelkazi 2 years ago

I 100% agree!

This is what we're seeing with BTC Miners right now - they're being forced to sell a great deal of their stake in order to keep up with expenses.

Proof of Brain, Proof of Stake and LP Mining (i.e. Liquidity Pools on PolyCUB and CUB) are the future.

Posted Using LeoFinance ^Beta

emeka4 2 years ago

It depends which involves a personal decision to take by individuals that engage in mining and every step taken requires the idea of making profits

Posted Using LeoFinance ^Beta

0.00 VYB

khaleelkazi 2 years ago

Yes it does, there are great calculators out there to help you figure it out

Posted Using LeoFinance ^Beta

0.00 VYB

emeka4 2 years ago

It is definitely awesome

Posted using LeoFinance Mobile

0.00 VYB

tobywalter 2 years ago

Mining crypto is one of the best and easiest way to acquire crypto ,
Thanks for sharing with us ,your post are always education and informative @khaleelkazi

0.00 VYB

pizzabot 2 years ago

PIZZA!

PIZZA Holders sent $PIZZA tips in this post's comments:
@curation-cartel_(16/20) tipped @khaleelkazi (x1)

_{You can now send $PIZZA tips in Discord via tip.cc!}

0.00 VYB

adedayoolumide 2 years ago

Though mining consumed so much of energy and this is on of factors to be consider. One of the biggest miner country Iran also denied the supply energy due to Large energy consume by the miners.

Posted Using LeoFinance ^Beta

0.00 VYB

khaleelkazi 2 years ago

Mining will always be a thing. The question is around how sustainable and economically viable it is!

Posted Using LeoFinance ^Beta

0.00 VYB

bitcoinflood 2 years ago

I was once a miner back in 2011 but quickly stopped once things started going to ASCI and my GPU was chugging out some serious heat at that point I only mined in the winter months. I moved to POS mining I'd say 2016 and having looked back. It just makes more sense and has the possibility for more people to get involved as long as the UI is easy enough. The big reason all these companies do so well with people loaning out their crypto in exchange for partial rewards is because people can't be bothered with setting up a node, how to use the complicated wallets etc. KISS (Keep It Stupid Simple) Is something crypto really lacks and is where companies are exploiting.

0.00 VYB

shortsegments 2 years ago

I feel the same way. I moved away from mining due to the heat, noise and doubling of my electric bill!
:)

Posted Using LeoFinance ^Beta

0.00 VYB

eatthebugs 2 years ago

I mine HNT (Helium) and make about .08 HNT per day in my small city.

I've made about 36 HNT since last May when I started.

With the $600 upfront cost and waiting 6 months to receive the miner and antenna and cable, I haven't broken even with the current cost of HNT ~$10.15

What I will say is that setting up my antenna and my miner has been roughly set-and-forget since I set it up and configured my modem which was relatively painless.

So, if I can keep mining for years to come, without having to do much work or maintenance, I think it was a great investment honestly.

When HNT was $50 last year, I would have been so happy with that bonus income.

0.00 VYB

shortsegments 2 years ago

I have heard of this, and hthought it might be worthwhile. But that big delay in getting the miner is problematic. Perhaps there is a secondary market now?

Posted Using LeoFinance ^Beta

0.00 VYB

khaleelkazi 2 years ago

Wow that’s crazy. 6 months to receive your miner 🙀

It’s always cool to get some extra passive income. No matter how small it might be

Posted using LeoFinance Mobile

eatthebugs 2 years ago

Thanks for reading and responding, Khal

The miner took so long because I ordered it in October 2020 when muh "supply chain crisis" was setting in nice and cozy, especially in the electronics markets.

It's a Nebra miner from Parley Labs - Parley is based in California and actually is pretty good I think as far as 3rd party retailers of this stuff goes. Waiting 6 months with constantly shifting times was really difficult but a humbling experience for sure.

This is my very lazy setup lol, note the chopsticks, actual sticks and zip ties. I made .18 HNT with it yesterday tho lol, not too bad. .18 of the ATH of $54.88 is like $9 something, that's pretty awesome! Uses less electricity than the router.

khaleelkazi 2 years ago

HAHA that is awesome lol

I love the DIY setup you’ve got there. I hope it reaches back to ATHs for you, that would be truly awesome.

The real gains in mining happen when you combine earning a steady income and the price of the asset going up over long time frames

Posted Using LeoFinance ^Beta

luizeba 2 years ago

Some friends of mine are still running a very profitable mining operation in Paraguay, where electricity costs are incredibly low due the Itaipu Dam...but that's a rarity nowadays...

!1UP

0.00 VYB

shortsegments 2 years ago

I am thinking about using solar since I live in a sunny place.

Posted Using LeoFinance ^Beta

0.00 VYB

curation-cartel 2 years ago

	You have received a 1UP from @luizeba! The @oneup-cartel will soon upvote you with: @oneup-curator, @leo-curator, @ctp-curator, @vyb-curator, @pob-curator, @neoxag-curator And they will bring !PIZZA 🍕, !PGM 🎮 and !LOLZ 🤣

^{Learn more about our delegation service to earn daily rewards. Join the Cartel on Discord.}

0.00 VYB

jersteemit 2 years ago

Quite understandable why Eth miners wouldn't love the ETH 2.0 has it will be affecting their rewards. Don't think it is worth it for new miner with this new development due to the effort compared to the rewards

Posted Using LeoFinance ^Beta

0.00 VYB

khaleelkazi 2 years ago

Exactly! Even me as a small miner. I’m not super excited about ETH2 for this reason.

That being said, I’m also excited for other reasons - I.e. usability and adoption of Ethereum. This effectively gives me a nice and hedged bet

Posted Using LeoFinance ^Beta

0.00 VYB

amberkashif 2 years ago

I have tried mining only through mobile apps and websites. Every time, it proved to be a scam.

0.00 VYB

hoosie 2 years ago

I'm a small time miner, and the hike in elec prices has made it uneconomical now. However, I do also use my miner to heat the room where my wife works from home, and accordingly we dont have our heating system on during the day - so that offsets the elec price increase. But its becoming more difficult by the day, and I can see I will probably have to stop at some point soon.

Posted Using LeoFinance ^Beta

khaleelkazi 2 years ago

Ah yes that’s an interesting use case I’ve heard from a few people who use it for heat as well.

It’s crazy how energy costs have skyrocketed. That’s why I prefer proof of stake and proof of brain mining these days. Alternatives to the physical

Posted using LeoFinance Mobile

0.00 VYB

hoosie 2 years ago

Yes - I agree, I'm unlikely to do much more mining - I definitely prefer the Hive type approach - content and curation

Posted Using LeoFinance ^Beta

0.00 VYB

khaleelkazi 2 years ago

Hive is truly one of a kind in this way. I think we’re leading the pack on the Web3 frontier - but you already know that since you’re here :)

Posted Using LeoFinance ^Beta

0.00 VYB