Mining Economics

Opportunity

Cryptocurrencies have presented the investor market with unprecedented returns on investment. Investors have been flocking, but others have hesitated due to significant volatility risk. Mining allows individuals to take advantage of these historic price increases while also leveraging dips in the market through increased mining returns.

Return on Investment

ROI in cryptocurrency mining generally refers to the point-in-time ROI. It ignores fluctuations in price and Network Difficulty, and assumes those variables will stay constant.

ROI (in days) = A / (CP)

The point-in-time ROI is defined as the initial purchase price divided by the amount of coins mined in a single day, multiplied by the current price of the coin. This gives a rough estimate of how long it would take for the mining rewards to pay for the initial hash rate purchase - foregoing any change in the price of the coin.

There are two primary reasons this method of predicting mining profitability is widely used.

  1. It is very simple to understand and calculate.
  2. Even though it is not expected that coin price and network difficulty will actually remain constant, they often move in tandem with each other - meaning if the price goes up, more miners start mining that coin and the network difficulty also increases, resulting in the point-in-time ROI staying roughly constant within a certain margin of error.

The point-in-time ROI changes daily and at times even hourly. For the last two years, the average point-in-time ROI for Ethereum mining has been 26 months (dated Jan 14, 2018). While it’s impossible to predict future outcomes, historical data shows a point-in-time ROI range of 7 months to 55 months.

Historical Point-in-time ROI (months)

MIne With Us

We are currently offering Trial Mining FREE for 7 Days. This allows new miners to experience our Dashboard, view real-time results and keep their trial earnings by making a qualified purchase within 14 days of their initial start date. That’s FREE mining with every purchase.