Crypto mining remains profitable in the long term, expert says
Steve Bassi said a long-term holder can trade well in the short term and then sell when the block reward declines in 2024. < /p>
Interview
From the great migration to the bear market, crypto miners faced many challenges throughout the year, including a shift in profitability. However, according to Bitcoin (BTC) and Ether (ETH) mining expert Steve Bassi, crypto mining can still be profitable when looking at its long-term prospects.
With application-specific integrated circuit (ASIC) miner costs hovering between $8,000 and $12,000, and electricity costs accounting for more than half of projected revenue, this is the currently estimated time frame in which a miner could cover the cost of a device. is five to six years. Commenting on the subject, Bassi said that while mining revenues certainly look bleak in the short term, they will change over time. He said:
"Long-term, we expect another BTC halving in 2024. So a long-term holder might well mine in the short-term and perhaps sell when the block reward declines in 2024."< /p>
If prices don't change in the next few years, things can go wrong for miners because the devices aren't designed to last that long. Bassi noted that mining hardware depreciates in three to five years, with some parts requiring complete replacement. "Over 60 months on these devices, operators have a good chance of having to replace a power supply or fan in a significant portion of these devices," Bassi said.
Despite this, the mining expert praised the water-cooling aspects of the new Antminer devices. According to Bassi, if this standard remains, cooling will be more efficient and only miners who already plan for liquid cooling will be competitive.
Related:
Steve Bassi said a long-term holder can trade well in the short term and then sell when the block reward declines in 2024. < /p>
Interview
From the great migration to the bear market, crypto miners faced many challenges throughout the year, including a shift in profitability. However, according to Bitcoin (BTC) and Ether (ETH) mining expert Steve Bassi, crypto mining can still be profitable when looking at its long-term prospects.
With application-specific integrated circuit (ASIC) miner costs hovering between $8,000 and $12,000, and electricity costs accounting for more than half of projected revenue, this is the currently estimated time frame in which a miner could cover the cost of a device. is five to six years. Commenting on the subject, Bassi said that while mining revenues certainly look bleak in the short term, they will change over time. He said:
"Long-term, we expect another BTC halving in 2024. So a long-term holder might well mine in the short-term and perhaps sell when the block reward declines in 2024."< /p>
If prices don't change in the next few years, things can go wrong for miners because the devices aren't designed to last that long. Bassi noted that mining hardware depreciates in three to five years, with some parts requiring complete replacement. "Over 60 months on these devices, operators have a good chance of having to replace a power supply or fan in a significant portion of these devices," Bassi said.
Despite this, the mining expert praised the water-cooling aspects of the new Antminer devices. According to Bassi, if this standard remains, cooling will be more efficient and only miners who already plan for liquid cooling will be competitive.
Related:
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