What Crypto Mining Holds For The Future
While cryptocurrencies have held our collective attention for several years now, many things in the crypto world have changed – even when those changes have gone mostly unnoticed by the general press. One of them refers to crypto mining: The fabled, often misunderstood way to obtain cryptocurrencies while doing nothing at all other than running a program on your PC.
Many things have been written about crypto mining, from articles about its elevated, unjustified energy cost and carbon footprint to propositions about its necessity. However, we want to focus on something else: Is crypto mining still profitable at all? And if so, which coins would be best for mining?
Profitability: It depends…
It shouldn’t surprise anyone to hear mining crypto in 2021 isn’t quite as profitable as it could’ve been back in 2013. Sure, the value of many cryptocurrencies has skyrocketed since then, but so has the processing power required to mine them, or at least the ones that are worth a lot.
So while in 2013 you could’ve been getting 1BTC/day using a desktop computer, that’s… not really an option today. These days, you’d need dedicated mining rigs for BTC mining and beefy graphics cards for ETH mining, and then you’d have to add the cost of power to it, potentially thinning out your profit margin.
That’s the case for the larger cryptocurrencies, tho. For the smaller ones, it’s different: Mining them can be good, although only for those that can even be mined anymore, as the scene has mostly moved to proof-of-stake models that don’t allow for mining to begin with. And then ,there’s the issue of value: Are they worth it?
The answer is that no, most cryptocurrencies you could easily mine aren’t worth a lot right now. But neither was Bitcoin in 2011, or Ethereum in 2013, or Dogecoin about six months ago. And anyone who started mining those only once they became worthwhile probably didn’t make much money, if they made any.
That’s because the trick to mining cryptocurrencies isn’t mining what’s hot now, but what will be hot in the future.
How to know what will be worth in a year or two?
Simply put, you can’t. If it were easy then everyone could get rich with crypto. There’s no specific formula or a list of points to look at that might tell you what will appreciate in value.
There are, however, standards you could follow to know what might be big later on. After all, people mined BTC in 2011 because they believed it would be big later. The key here is simple: Look for coins with a solution to an existing challenge. While some cryptocurrencies that exist just for the sake of existing have grown big, the future will likely favor crypto with actual case uses. Some of them could be:
Monero has long been a darling of the privacy community due to the untraceable nature of its transactions, assuring the highest possible degree of anonymity in a blockchain. As it is with other tokens, it has rallied this year, currently sitting at nearly four times the value it had when the year began. While the rally might or not continue, it’s assured that the coin will maintain its use case for a long while.
Originally designed to power a distributed video network, Boliecoin went through a redesign and now stands as a Peer-to-Peer settlement currency. It’s still early days for the crypto, and while it’s not worth anywhere near what Monero or ETH are worth, it has so far maintained its launch price – a feat of its own in the crypto scene. Many crypto analysts consider it to be a gem in the making.
While mining proper ETH might be a folly right now, particularly since the switch to proof-of-stake is coming “soon,” Ethereum Classic is still one of the mining currencies of choice for those who use their GPU for the task. The currency, like others, is currently rallying and its value will possibly crash in the future, but there’s a good chance it will pick up again soon after – so it makes a decent long-term investment.