Bitcoin Mining Challenges: Is it No Longer Profitable?

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Crypto Mining: Is it More Profitable to Mine with NiceHash?

Introduction

As crypto miners, it is our job to question everything, especially when it comes to profitability. Today’s video is sponsored by the team at ASICJungle.com. They have your team covered if you want to take crypto mining to the next level by securing a new facility and outfitting it with mining hardware. ASICJungle is one of the largest crypto hardware procurement partners in the industry, with discounted pricing and top tier brokerage services. Learn more by following the link in this video description.

NiceHash’s Bold Statement

At the start of 2023, NiceHash made an astonishing statement: when mining Bitcoin directly on their pools, you can earn an average of 7% more in seven days and almost 6% more in 30 days compared to mining it directly with other pools. This video aims to test and analyze this statement and see if NiceHash’s claims hold water.

The NiceHash Article and Test Setup

In early January 2023, NiceHash published an article explaining how their platform helps users earn more than mining Bitcoin directly, with some percentages as high as 6.4%. The article goes on to talk about what sets NiceHash apart from traditional mining pools and how the involvement of buyers purchasing hash rate directly from miners creates a higher return on investment.

In order to test NiceHash’s claims, two identical S19J Pro miners were set up, one directing its hash power to NiceHash and the other to a different mining pool (in this case, Antpool). The test began simultaneously for both miners and continued for nine days. The results were then compared and analyzed to see if NiceHash’s claims held any merit.

Please note that while this test was conducted thoroughly, it was not entirely 100% scientific, as both miners were not in the same location, and various factors such as ping times, up and down timing, and other operational variables could skew the results.

Results of the Test and Comparing with NiceHash’s Claims

After the nine-day test, it was found that mining on NiceHash did indeed yield higher returns on investment compared to mining directly with Antpool. On average, the miner mining on NiceHash made an additional 3% when compared with the miner on Antpool. Although this is not as high as the percentages claimed by NiceHash in their article, it still shows that mining with NiceHash is more profitable in this particular case.

Conclusion

While mining with NiceHash was found to be more profitable in this test, it is crucial for miners to conduct their own tests and research before making any decisions regarding which mining pool to use. Keep in mind that varying factors can affect mining profitability, and what works in one scenario may not work in another.

This test does show that NiceHash’s claims hold some merit, and for those miners looking to earn more by switching to a different mining pool, it may be worth considering NiceHash as an option. However, as always, it is essential to continually question best practices and profitability in the rapidly changing world of crypto mining, and miners should always do their own increased testing.

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About the Author: Mike Izzo

34 Comments

  1. !!!!Big scam!!!!… first of al you need to buy stuf and like a lottery maybe you win some… and my spam folder is now full of crap,and SCAMMERS, after making account on nicehash …

  2. Why do you recommend the asicboost stratum? Whattomine shows the regular sha256 stratum almost a $1 more profitable for my asics. Power consumption is about 200w more but im going for yield.

  3. 3 reasons I don't use nicehash:
    1. We don't know what they're actually doing behind the scenes with our miners' hashrates
    2. what if they get shut down or regulated (for whatever reason) and I have a lot of mined BTC locked in there i can't get it out
    3. You have to manually move and pay fees to get your btc out of there.

    I don't think the 2-3% increase is enough reason to use them. At best it's a wash.

  4. I’m so happy I made productive decisions about my finances that changed my life forever. I’m a single mother living in Melbourne Australia, bought my second house in September and hoping to retire next year at 40 if things keep going smoothly for me.,,

  5. Remember nicehash fees are 0.0003 that’s roughly 10$ if you are on a single pc maybe dual this is not ideal unless you want to keep your earnings on their website for a while. And these dudes have history.

  6. I feel nicehash wants you to lock up your earnings in there cold wallet. Red flag for me. If they want to prove me wrong that they do not use your funds, let them reduce the payout amount to 0.0002 BTC

  7. Thanks for the video and the work involved in making it. I did the same sort of testing with 7 iPollo mini classic plus's on NH and various different pools. NH always showed a little more profit in the end.

  8. Been mining with Nicehash with GPU initially since March 2021 then switched to all ASICS mining since January 2022. I agree with your assessment and I have no regrets!

  9. This is an interesting test. I have a bunch of different miners if you’d like to run F2 vs Nice Hash to get more data. Or pool v pool lmk id love to work w you! I have m30s s19 95t S19JPro 104 KA3 L7. If you are serious I’ll show you a cool pool that we should test as well

  10. @The Hobbyist Miner whats the news on being able to get our iPollo G1 Mini’s on Nicehash? Ive tried everything & i dont see why it wont mine Grin on Nicehash. We need this working for us 🤜🏼

  11. Interesting video. But i think that you would be more profitable when using braiins os firmware with autotuning and braiins pool or using luxor firmware and pool.

  12. Great video Hobbyist! Would your results have been different if you guys had used a different pool such as f2pool for example? 3% is still 3% imo after some time that extra sure will be nice! lol

  13. THM great 👍 video, my only question is goes nicehash has withdrawal fees? Most pool has free auto withdraw no fees when you hit their minimum withdrawal threshold, if nicehash has withdrawal fees that should be subtracted from the total earnings.

  14. I have 5 S19JPro104T on Nicehash and yes I think they generate slightly more income than direct mining to Antpool. But I also have 5 Whatsminers (102T-120T) and they did not like mining to Nicehash at all- the units kept alarming up with "low hashrate" alarms and restarting mining? Maybe the indirect mining didnt suit them. Never did work it out so the Whatsminers stayed on Antpool where they chug away quite nicely….

  15. I got 3rd haha. Good video The Hobbyist Miner. i wonder if it would if they could do this with another coin? What else are you mining? Right now today? Any kaspa mining?

  16. Nicehash has a tainted past for sure, but they do provide a pretty sweet service IMO. Helps me stack those sats with GPUs, when otherwise I couldn't due to the BTC network difficulty.
    Great vid, love to contract & compare 🖖

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