Then look no further as this article aims at discussing those two questions.
Is Bitcoin and Cryptocurrency mining business profitable in 2023?
The last time I was writing on this topic was in 2019, on the website you’re reading right now.
Three years have passed, and I decided to write an updated version of it.
But I’m glad that what I wrote back then proved true in 2021.
When I wrote an article on the Bitcoin mining business in 2019, I had to provide the correct facts.
And the correct facts were that the Bitcoin mining business in 2019 wasn’t profitable.
We had a down market, many people saw their crypto accounts wiped out, and many miners had to sell their equipment.
When crypto prices fall quite a lot, mining simply isn’t as profitable as with higher crypto prices.
Some can bear it, while others have to leave the business if, for example, the price of electricity in their country is expensive.
The bitcoin mining business is similar to investing
There’s a catch.
For the last 12+ years since the Bitcoin inception, miners always made a profit, as long as they waited long enough.
And that’s why I like saying that crypto mining is similar to crypto investing, which again is similar to regular investing.
In other words, as long as you can survive the crypto winters, there’s a nice paycheck for you when the markets are trending.
In 2019, mining wasn’t profitable. Yet, I did my best at explaining to my friends and readers that the situation can change, as long as they can wait.
If someone earned $10.000 by the spring of 2020 in crypto, those earnings would become at least $100.000 in 2021. And if they mined with the same hardware in 2021 as well, or mined a cryptocurrency that jumped more than Bitcoin, then they would end up with $200k to even a million dollars.
The point here is that you don’t have to sell your mined earnings and tokens immediately- as long as you can live without them, you should wait for the right time to sell your mined crypto earnings.
So, is cryptocurrency mining profitable in 2023?
Right now it’s not.
Will it be profitable tomorrow? No one knows, but until last year and for the last 12 years, Bitcoin and cryptocurrency mining was profitable.
There are times when mined earnings should be kept for better market tides, and there are times when you can withdraw as you mine.
Mining in 2017 and before was very profitable.
Mining in 2018-2020 was profitable if you waited long enough or had cheap electricity prices. It was very profitable if you waited until 2021.
Mining in 2021 was very profitable.
Mining in 2022 was profitable and it may become profitable in 2023-2025 if you wait long enough.
No one knows the best date to wait for, but major bull runs in crypto markets happen approximately every 4 years(and are related to Bitcoin halving, where miner rewards decrease in half, thus increasing scarcity).
The last two Bitcoin halvings happened in 2017(when Bitcoin price went from $2.000 to $20.000), and in 2021(when Bitcoin price went from $4.000 to $67.000).
2025 makes the most sense for the next big crypto run, but it’s not impossible to happen before, as institutional investors have started investing more in recent years.
Of course, there’s always a possibility that crypto markets will crash again and never recover, but if you don’t believe in Bitcoin or some other cryptocurrency, then Bitcoin and crypto mining isn’t the best choice for your business.
Remember, mining is similar to investing, and you wouldn’t want to invest in something you don’t believe will grow with time.
How to start a Bitcoin mining business?
If you have done your research, and believe in crypto enough, you may wonder how to start your own Bitcoin mining business.
Luckily for you, I wrote a simple Bitcoin mining guide for beginners, which should get you started.
In a nutshell, you need to see which hardware you have or can buy and whether that hardware consumes more electricity than is profitable for you or not.
Hardware cost is the single most costly investment you need to get started, so any hardware you already have will make your mining business profitable.
Electricity pricing in your country is also very important and similar to having hardware already.
It’s very helpful if you already invested in alternative energy(like solar panels on your house or property, wind or water-based power solutions, etc).
So in other words, you need to see how much your hardware can make per month, how much electricity that hardware will spend, and if you’ll end up as profitable or not.
Remember, even if you’re not profitable at the moment, you may become profitable in the future, as long as you can wait patiently.
Should you start Bitcoin Mining Business in 2023?
It’s not for everyone, and it’s not guaranteed. Bitcoin and altcoins are still relatively new assets when compared with gold and real estate. They are also much riskier.
But Bitcoin and altcoins also have much larger profit potential. We’re talking about hundreds if not thousands of percentage returns.
Nothing unusual here- it’s risky, but you can reduce some of the risks by playing smart. Still, it can potentially bring you a massive reward.
So what should you do?
Don’t invest anything you can’t afford to lose. And be patient- becoming an overnight millionaire is rarely possible, yet more possible than with any other asset so far.