Last updated August, 2017
This is a tough question with lots of variables, so I’ll do my best to explain the different angles.
Mining Cryptocurrencies and Mining Altcoins
When people start to look at investing in Bitcoin or Ethereum or any of the other altcoins, it isn’t long before you come across some information about mining cryptocurrencies. The internet is full of stories of people that have made, or are making, fortunes mining cryptocurrencies. While that was true, and likely still is true to some extent, mining can take a fairly large investment before it sees much profit.
In order to mine coins, specialized hardware is needed. I say specialized, but really it could be something as simple as high end gaming video cards, or something as complex as custom built computer chips designed to do just one thing – mine. As the price of cryptos goes up, so does the price of the mining hardware.
The History of Cryptocurrency Mining for Profit
3 years ago, people were buying up mining equipment like crazy because it was fairly easy to make a profit. Now-a-days, not so much. Or is that not really true? When we start looking at the numbers, we’ll see that as the price of Bitcoin and Altcoins has risen, even though the cost of hardware has risen, it can still be profitable.