Crypto mining remains profitable in the long term
The crash of the crypto market was another reason for the declining profitability of Bitcoin and Ethereum mining. However, experts believe that crypto mining remains a profitable business in the long term.
PolySwarm CEO Steve Bassi said that now the cost of ASIC miners varies from $8,000 to $12,000, and electricity costs of mining companies take up more than half of the income. In view of the current rates of cryptocurrencies, it can be assumed that the mining equipment could cover their cost within five or six years.
According to Bassi, the Bitcoin exchange rate may rise after another BTC halving, which will happen in 2024. Therefore, long-term holders can mine tokens now, and sell them after their value increases.
However, if the prices do not change, the miners will suffer great financial losses, since most of the mining equipment is not designed for such a long-term service. Bassi noted that within three to five years it will be necessary to replace a power supply or fan in a significant part of the devices.
At the same time, the expert highly appreciated the water cooling aspects of the newer Antminer devices. This type of ASIC miners is more efficient, so in the future these devices will become most of the market.
Changpeng Zhao also disclosed his thoughts about Bitcoin mining. Binance CEO compared Bitcoin mining with energy consumption by traditional financial companies and noted that mining is more efficient. He believes that this is another reason for accepting Bitcoin.
Zhao said that mining costs are easily calculated, unlike the costs of backing other assets.
Earlier it was reported that experts noted that the Bitcoin exchange rate has started to grow.