In fact, to ensure a smooth and reliable network, mining difficulty is adjusted based on how many blocks have been mined.Īn increase in the mining difficulty increases the electricity cost, which in turn, affects profitability. Mining difficulty and hashrateĬryptocurrency mining is highly competitive due to the high number of miners involved.

For instance, a mining rig with a 10% higher hashrate than another but consumes 50% more power is both wasteful and less profitable. How much power does your system consume in watts and what is its hashrate? To mine profitably you need to assemble a mining rig with a decent hashrate and power consumption rate. In the US, you will spend an average of $4,758 in electricity costs to mine one bitcoin. Bitcoin miners in Venezuela spend an average of $531 on electricity to mine one bitcoin while those in South Korea require a massive $26,170. The cost of electricityĬurrently, Venezuela has the cheapest electricity rates while South Korea has the most expensive electricity rate. If you are patient enough, you can still choose to mine a promising coin and wait for its price to grow. However, such coins are also difficult to mine and you might be forced to find a good alternative. In simple terms, the more expensive a cryptocurrency is, the more profitable mining should be.įor instance, a lot of people are willing to purchase expensive ASIC miners to join bitcoin mining because the price of one BTC is quite high. The price-performance of a coin is among the key indicators of whether it is worth the mining costs.

Here are some of the factors that determine crypto mining profitability: Price of cryptocurrency After all, you are in this game to make money, nothing less. Profitability should be your number one priority while choosing a cryptocurrency to mine.

How to Determine the Profitability of a Coin In this post, we outline some of the best cryptocurrencies to mine in 2020.

One of the best ways of beating the competition and staying one step ahead is by understanding the best coins to mine. However, making a profit from mining cryptocurrencies is not guaranteed unless you know what you are doing. It is like everyone wants to make money from this exciting and innovative space. Today, crypto mining is much more popular than ever before.

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