Long-term profitability of cryptocurrency mining, according to experts


According to Steve Bassi, a long-term investor may do well by mining in the near future and selling when the block reward decreases in 2024.

Crypto miners faced several difficulties during the year, including a change in profitability, from the massive exodus to the weak market. However, if we consider its long-term possibilities, crypto mining may still be viable, according to Steve Bassi, a specialist in Bitcoin (BTC) and Ether (ETH) mining.

With power expenses accounting for more than half of predicted income and application-specific integrated circuit (ASIC) miner costs ranging from $8,000 to $12,000, it is currently thought that it would take a miner five to six years to recoup the cost of one device. Speaking on the subject, Bassi stated that although mining income may appear dismal in the near future, things would improve with time. He stated:

“In the long run, we’re expecting another BTC halving in 2024. So, a long-term holder could do well mining in the short term and perhaps selling when block reward goes down in 2024.”

Since the equipment isn’t built to survive that long, things might get difficult for miners if costs don’t drop in the upcoming years. In three to five years, mining equipment depreciates, according to Bassi, and some components require total replacement.

“Operators have a fair possibility that they’re going to have to replace a power supply or fan in a big number of these devices out to 60 months on these devices,” said Bassi.

The mining expert lauded the water cooling features of the more recent Antminer devices despite this. If this norm persists, according to Bassi, cooling will be more effective, and only miners who have previously made plans for liquid cooling would be able to compete.

JPMorgan strategists noted earlier this month that the cost of generating BTC has decreased from $24,000 to $13,000 at the beginning of June. Since September of last year, this figure has never been lower. Some believe that the decreased production costs will have a negative impact on asset values even if they may lessen the selling pressure from miners.