While the price of Bitcoin is growing very slowly during the crypto winter, predicting and cheering on the rate of return on investment (RIO) of a new mining rig will be like shooting in the dark. However, a mining expert has explained that with the introduction of the most profitable Bitcoin mining machine, there may be hope for miners to return to the cycle.
According to Cointelegraph, Phil Harvey, CEO of cryptocurrency consultancy Sabre56, said:
When considering the possible profitability of mining devices, various factors should be considered.
These factors include:
The technical specifications of the miner are the costs, the real rate of return on investment and the economics of mining digital currencies over time.
Harvey has reviewed Bitmain’s new device, the Antminer S19 XP.
He believes that considering the technical specifications, this device is the most profitable miner currently in the market.
He emphasized that the current price of miner devices has decreased significantly compared to the previous months.
He estimates that the price of the S19 XP could drop to around $5,600 if purchased directly from the manufacturer.
Currently, the price of each Antminer S19 XP machine on the Bitmain website is $11,620.
The CEO of Saber56 explained about the real rate of return on mining investment that:
After about 11 months of activity, the miners should compensate the cost incurred for the purchase of their mining devices.
This index, obtained from the company’s database, examines the earnings of miners since the launch of the first ASIC (ASIC) miner.
Harvey says it will take miners about 15 months to break even, factoring in electricity costs.
The lifespan of the new Antminer series model can last at least 36 months depending on the conditions in which they are located.
Mining revenue estimates are not always the same as what happens on paper.
In 2013 and 2014, the average estimated earnings for Bitcoin mining increased to $4,711.28.
While the real income of the miners during these years was only 1,047.33 dollars.
He added:
Basing a single metric such as Dollars per TeraHash on mining economics cannot provide an accurate picture of the cryptocurrency mining industry, investment opportunities, or the market as a whole.
Harvey emphasized that the data predicts a decrease in miners’ earnings per hash and a possible collapse of the cryptocurrency mining industry.
The amount of income of each mining device is a marginal issue and this industry has shown its stability over time.