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Introduction to Cryptocurrency Mining and End of Month Recap
Welcome miners to our monthly recap of the hobbyist miner channel. Over the past four months, we have seen significant growth in our mining rigs, profitability, and the number of graphics processing units (GPUs). In this article, we will explore the current state of these elements, as well as discuss the reasons behind the chosen cryptocurrencies for mining and the importance of diversifying your mining portfolio.
Growth of Mining Operations and Profitability
Since February 2021, our mining operations have expanded from mining with just a few GPUs to operating 40 GPUs across multiple rigs. This increase in size has led to fluctuations in profitability. In May, the total annual profits were estimated at $14,450, while in June, they dropped to $10,317. However, in July, the profits increased to $15,611, and in August, they reached $18,808.
It is important to note that these numbers are based on the current profitability of various cryptocurrencies, making them highly speculative. However, they are still useful for monitoring the growth of the mining operation and evaluating the performance of different rigs and cryptocurrencies.
Choosing Cryptocurrencies for Mining and Diversification
Currently, our mining operation is focused on several cryptocurrencies, including Ethereum, Ergo, Flux, Ravencoin, and Ethereum Classic. The choice of these cryptocurrencies stems from a speculative approach to mining, as we believe that the value of these coins may increase in the future.
The decision to mine Flux over Ethereum with some GPUs is driven by our desire to build up the Flux wallet. Although Ethereum mining offers higher profitability, the belief that the rise of altcoins after Ethereum 2.0 will result in increased value for Flux makes it a more appealing choice.
By diversifying our mining efforts across multiple cryptocurrencies, we aim to minimize the risk associated with mining and maintaining stability in the mining operation regardless of fluctuations in the value of individual coins.
Breaking Down Profits and Costs Per Rig
To understand the profitability and costs associated with each mining rig and cryptocurrency, we use a spreadsheet to track the hash rate, power consumption, and estimated profits for each GPU. This is calculated based on the current value of the coin being mined, and the following elements:
– Revenue per day
– Electricity costs per day
– Profits per day, month, and year
– Total electricity consumption per rig
Please note that these numbers are estimates and may vary depending on multiple factors, such as fluctuations in the value of cryptocurrencies and changes in mining difficulty.
To calculate these values, we recommend using mining calculators, such as the one found on WhatToMine. These calculators allow you to input your GPU’s current hash rate, power consumption, and electricity costs to provide an accurate estimation of daily and monthly revenues and costs.
Based on these calculations, we can estimate the profitability of each GPU and rig. For example, the Banshee rig, with a single Zotac 1080 GPU mining Flux, generates a profit of approximately $357.70 per year, while the Cipher rig, with six RX 470 GPUs mining Ergo, generates a profit of $2,186 per year.
Conclusion and Future Plans
Moving forward, we aim to continue expanding and diversifying our mining operations. By investing in more GPUs and mining multiple cryptocurrencies, we hope to capitalize on the potential future growth of altcoins.
In the meantime, we will continue to monitor the performance of individual GPUs and cryptocurrencies. This will allow us to make more informed decisions about which coins to mine and ensure the stability of the mining operation.
We encourage fellow miners to experiment with different cryptocurrencies and mining strategies, as what works best for one individual may not work best for another. By staying informed and maintaining a diverse mining portfolio, you increase the chances of maximizing both your profitability and long-term success in cryptocurrency mining.
Happy mining, and don’t forget to subscribe, give a thumbs up, and leave a comment below with information about your current mining operation and the number of GPUs you’re operating.