Unlocking Wealth: Making Money with Crypto in Modern Times

The Enduring Pursuit of Crypto Mining

In a challenging market and an atmosphere of economic uncertainty, the prospect of mining cryptocurrency has become less enticing for many miners. Amid the turmoil, the backbone of the digital currency network, the miners, have had to find creative ways to continue mining through what many refer to as the cryptocurrency winter, or ‘bear’ market. This article explores how, even when it appears to be not profitable or break-even, I have managed to keep mining through this economic downturn, both by adapting and making some judicious decisions around energy usage and hardware choice.

Managing Electricity in Mining

Electricity is a significant aspect of mining costs. As most miners already know, the profitability of the mining operation greatly depends on the price paid for electricity. In the US, different states have different delivery and supply charges for electricity. For instance, in Pennsylvania where I’m based, the delivery side of the electric bill, the right side, is managed by PPL electric, a company which I cannot control. On the other hand, the left side of the bill, the supply side, is controlled by another company, Inspire, and as the homeowner, I have some measure of control over this side.

Controlling Supply Costs

Inspire offers an unlimited electric option. It means that, regardless of the kilowatt hours used, the monthly electricity bill remains constant. Inspire and similar companies in Pennsylvania offer the option of paying a fixed amount per month for unlimited electricity. This option has allowed me to mine cryptocurrencies at a sustainable rate, even during a period when many see it as not profitable.

Electricity Cost Calculation

Let’s consider this with an example. Taking my total monthly spend on electric of $475.42 and dividing it by the total amount of kilowatt-hours per month (9603), we arrive at an electric rate of approximately five cents per kilowatt-hour. Now let’s project this to the near future. With the increased utility rate from Inspire, the expenses for electricity would go up to $584 monthly. Yet, when we apply the same calculation to derive the cost per kilowatt-hour, even with the increased monthly charge, the rate remains a surprisingly low ten cents per kilowatt-hour. Considering that global rates per kilowatt-hour often fall within the range of 20-30 cents, these rates are not just competitive but also a factor behind the mining operation’s continued sustainability.

Choosing the Right Mining Hardware

Besides controlling electricity costs, the choice and performance of mining hardware play a crucial role in sustaining the mining operation. I have different types of rigs, each performing at different levels, depending on the type of cryptocurrency they are mining. Let’s take a look at two examples, Antminer S19J Pro and the Gold Shell Mini Doge Pro.

Antminer S19J Pro

At my electric rate of five cents per kilowatt-hour, the Antminer S19J Pro yields almost $4.57 per day, according to ASIC Miner Value. Despite the broader market conditions, this rig remains profitable. Its hash rate is 104 TH/s, and it’s also worth noting that rising fall temperatures have reduced the fan RPMs, allowing the machinery to function more efficiently.

Gold Shell Mini Doge Pro

The Gold Shell Mini Doge Pro is still profitable even after accounting for my electric rate, with a daily yield of 24 cents. This rig, which mines Dogecoin, remains useful for the mining operation despite market turbulence.

Mining Profitability in Crypto Winter

While it’s crucial to maintain profitability for each individual machine, having a diverse portfolio of mining operations also helps. Alongside mining Bitcoin and Dogecoin with my Antminer and Gold Shell Mini Doge Pro, I also mine other cryptocurrencies. For instance, through the usage of my Jazz Miner X4 Q and Jazz Miner X41U, I’m able to mine Ethereum Classic and still achieve profitable returns, despite the ongoing crypto winter.

Maximizing Returns with GPU Mining

Along with ASIC miners, I also use GPU miners. These are less power-intensive but can be a lot flexible since they can be used to mine a variety of cryptocurrencies. I use the 6600, RTX 3070, and the 3060 TI graphics cards to mine vert coin, aeon, and flux respectively. These cards have proven to be the most profitable at my electricity rate and have continued to generate returns during the economic downturn.

Maintaining a Forward-Looking Perspective

In conclusion, despite difficulties brought about by the crypto winter, the ability to continue mining cryptocurrencies has been largely enabled by judicious management of electricity costs and careful selection of mining hardware.

For many, the current dip in the market and the associated plunge in mining profits might seem a death knell for their mining operations. However, this period can also be seen as a purging process. Miners who can adapt and continue to find ways to keep operations profitable even in lean times are likely to come out stronger once the market recovers.

It’s important to note that this perspective doesn’t apply to everyone, considering the vast differences in electricity costs worldwide and the available capital for investment in mining hardware. However, with persistence and creativity, overcoming such downturns in the market is very much feasible.