Time is ticking as Bitcoin’s mining difficulty increases endlessly, as miners of all types dash to purchase the latest mining hardware. But is this all still profitable for the average miner? As the difficulty approaches 1,500,000,000, many miners are left in the dust.
Cloud mining, such as cex.io, will never break even at all, making a maximum of 0.02 BTC, with hopes of reselling it back into the market, hopeless. Altcoins, the land of pumps, and dumps. As new altcoins popup every single day, should miners turn away from Bitcoin, leaving behind their ASICs and begin mining scrypt coins? According to coinwarz.com, there are plenty of coins that are even 4,000% more profitable than mining Bitcoins, while Litecoin is still 2,800% more profitable. The demand for GPUs for scrypt mining is growing stronger, with Amazon and Newegg out of stock for plenty of the newer and more efficient miners, such as the 7950. These AMD GPUs are gaining resale value, as miners rush to purchase them and start mining before any type of scrypt ASICs gets released.
These freshly minted altcoins can then be exchanged over to Bitcoins using the many available altcoin exchanges, such as bter.com and cryptsy.com. Utilizing cryptsy’s autosell feature allows all new coins that are deposited into your account’s address to be automatically sold for Bitcoins. Altcoins can also be wisely traded to make even more profits. So why then, you may ask, are miners still mining Bitcoins rather then these newer and much more profitable altcoins? Their trust in the coin is one thing, speculating that Bitcoin’s value will outgrow itself. ASIC also cannot currently mine scrypt coins, which is what the majority of altcoins are based on today. The final thing is securing the Bitcoin network, as more blocks are mined and the difficulty rises, the stability and security of Bitcoin increases. Some people are not investing purely for profit, but in the hopes of cryptocurrency becoming the new global reserve currency. Until then, altcoin mining with GPUs are currently profitable.