Main menu


Is Bitcoin Mining Still Profitable in 2020?


Bitcoin's price performance in 2020 was dramatically volatile, as it fell to its lowest levels in March to quickly climb back to a new record it had not set in a full year.

Meanwhile, Bitcoin's hash rate has increased by more than 25% since March, recently reaching its highest value ever.

In May 2020, Bitcoin also completed the third split event in the bitcoin mining reward, which caused the amount of bitcoin mined each day to be halved.

With all of these factors coinciding with each other, the question can arise:

Is Bitcoin Mining Still Profitable in 2020?

We will deal with the answer as follows:

Mining difficulty increases with time:

One of the main things miners should keep in mind when mining bitcoins is the difficulty of the process.

In short, Bitcoin's difficulty determines the amount of work the mineral will need to solve the complex mathematical problem that will allow miners to add a new block of transactions to the blockchain.

This difficulty increases or decreases after every 2016 blocks, or approximately every 14 days, depending on how quickly you found the previous 2016 blocks.

If the previous 2016 block took less than 14 days to discover it, the difficulty would increase, while it would decrease if it took more than 14 days to discover it, all with the goal of returning the average discovery time to 10 minutes.

Since the hash rate tends to increase over time, so does the difficulty of detecting the mass which in turn makes it difficult for miners with old hardware to keep up as their percentage of the total hash rate decreases over time.

However, as the bitcoin price tends to rise after the hash rate increases, increasing difficulty does not always mean lower profitability.

There are also a few steps miners can take to accelerate their return on investment (ROI) and increase profits.

The profitability of Bitcoin mining depends on several factors:

The best way to stay on top of the difficulty curve and increase the profitability potential is to have the latest and most efficient mining equipment at an affordable price.

Those looking to make a profit by investing in new mining machinery will need to consider the price, shipping cost (and any potential delays), import taxes, and the electricity costs involved in getting their new machines up and running.

The perfect bitcoin miner is energy efficient, less fussing and has an ideal hash rate.

According to CryptoCompare's mining profitability calculator, 1 TH / s of hash rate would generate roughly 0.00000742 BTC, which is roughly $ 0.08639 per day in earnings with the current value of Bitcoin ($ 11,763).

For this reason, the Antminer S17 providing processing at 73 TH / s will fetch around $ 6.30 per day, while the S30 M offering processing at 112TH / s will fetch around $ 9.68 per day.

And not just this calculator. Miners need to deduct electricity and maintenance costs, which can vary greatly depending on the country and the energy costs they have access to.