Sell or Buy? What to do with mining equipment after the fall of the cryptocurrency market
Unfortunately, in 2022 for some BTC miners (and not only) mining has become unprofitable. This is due to high electricity prices, and asics consume a huge amount of it. Also the bitcoin price drop has played its role. And the bear market, cryptozyme does not give miners of virtual coins to get the profit from crypto farming, which was before.
Thus, we wrote about the fact that thousands of asics are gathering dust in warehouses. And people who were involved in obtaining virtual coins not so long ago are wondering what to do with the expensive equipment. Let's take a look at some variants of asics realization in such difficult time. Answering the question: what to do with the mining equipment after the fall of the cryptocurrency market?
1. Selling the devices
If you want to maximize your profits given the current market reality, you should sell your mining farms right now. Time is of the essence, as the prices of asics are gradually falling and more and more people who farm crypto are trying to sell their equipment.
The device market is very volatile right now. But only in one direction: down. There is an opinion that even if you want to go back to mining later, asics will be in abundance.
ASICs, unfortunately, don't have a lot of use cases. Unlike the same GPUs. So realizing asics other than through crypto mining is problematic to say the least.
2. Keep mining BTC
Or whatever crypto you want. Obvious advice, but, we think, the most important one. Sooner or later the «winter» will be over and the price of BTC will stabilize.
Moreover, investor Tim Draper suggested that the bitcoin will grow to $250,000 next year.
Whether to believe it or not is up to you to decide. But the likelihood of bitcoin's price stabilizing is high.
3. Heating the premises
Given rising fossil fuel prices, it may still make sense for those who live in winter areas and have access to cheap electricity to mine at a loss just for heat.
In most places, this strategy is likely to fall into the «fad» category. Since residential heating with traditional dedicated infrastructure would be more cost-effective.
4. What's being done to devices after ether's transition to PoS
Another sore subject for the mining community. But virtual coin miners have found other uses for devices that proved irrelevant after ETH switched to another consensus mechanism.
Artificial intelligence and machine learning
Computational trading platforms like Vast.ai are back on the radar, but there are a few prerequisites to making this idea viable at scale, making it an unattractive option for most miners interested in profitability.
You need an internet connection with very low latency, more processing power, and more video memory than your typical mining rig.
While rendering is more attainable than leasing computing resources for machine learning and artificial intelligence, there are well-established competitors to contend with in this area.
While generative art projects such as Dall-e and Artflow.ai consume computing power, in either case using a high-performance centralized data center with reliable uptime is the optimal solution.
Render Network's flagship decentralized rendering project has experts working to make this model viable. It currently only pays about $20 a day (verified before the merger) and is not currently taking on new miners. Decentralized rendering has a long way to go before it can compete with other industries.
What you won't do with your ETH mining farms
Ideas suggested as alternatives to cryptomining have been voiced. These use cases tend to work best in highly centralized computing environments, which is the opposite of what the installations are optimized for.
In these cases, there are infrastructure issues and additional hardware investments needed to pay off these ventures.
Tip from Ultramining.com
Yes, 2022 has been a particularly challenging year for people involved in virtual coin mining. This is due to both the ETH transition to a different algorithm, the collapse of the BTC price, the bear market in the crypto industry and the prolonged «winter» in the industry.
That said, analysts are also noticing favorable trends. This is probably a period that just needs to be endured. How to do it? Not to panic is first of all to read the news and blog Ultramining.com to keep up to date, to continue to farm virtual coins and to get pumped in this direction.
If you're just getting into the industry and aren't sure if you should do it, don't let the negative sentiment in the community misinform you. Give it a try. We're sure you'll do well. The only thing is, you're unlikely to be «skimming the cream» this year or next. But mining bitcoins (and many other virtual coins) will soon pay off with the right approach.
Read more from Ultramining.com on how to mine crypto correctly.