In ThirteenBits we have talked extensively about mining cryptocurrencies: from what it is, to what it takes and how to start doing it. But all this is just a curiosity if we don’t manage to make a profit. That’s why, in today’s video, we are going to answer the most important question about mining: is it profitable to mine cryptocurrencies in 2022?
Mining is a process that requires quite expensive hardware. Specifically graphics cards, components that have multiplied enormously in price in recent years, partly due to the high demand caused by miners. This implies that a high-end card, can cost close to 3,000 euros when two or three years ago it was less than 1,000.
On the other hand, the price of electricity is skyrocketing, having reached highs over the past year across Europe. And considering that mining requires the equipment to be constantly running, se can deduce that electricity consumption will be high.
Therefore, we have to face the reality that starting to mine requires a heavy initial investment and that it is also going to have a significant cost in the form of the electricity bill. However, the real key to profitability lies in the price of the cryptocurrency we are mining, which if it is high, can be more than enough to cover the electricity costs and to recover the initial investment.
But the cryptocurrency market is tremendously volatilewhich means that mining cryptocurrencies in 2022 can be profitable one day and become a money black hole the next. Remember that at ThirteenBits we are not financial advisors, and that before investing a single cent in cryptocurrencies, you should do as much research on your own as possible.