As profitability decreases, many miners are starting to question if it’s still worth mining or if they should look for alternative sources of income. With the Ethereum merge coming, most miners are wondering where they are going to take their capacity; CPU-based coins with a strong and real economy use case present a brilliant opportunity. You may be thinking the same thing, too, and that’s okay because you have to do what’s best for your family and financial situation as a whole. However, here are four reasons you should keep mining even with lower profitability in 2022.
The Price of Bitcoin Will Go up Eventually
The price of Bitcoin is cyclical. It goes up and down, but it always comes back up. That’s why you shouldn’t give up on mining even when profitability is low. Because the price will go up again and you’ll be able to make a profit.
Price Volatility isn’t Bad as Long as You Know Why It Happens
The main reason prices are so volatile is because the market is still new, and people are still trying to figure out what Bitcoin is worth. As more people become comfortable buying and holding Bitcoin, the price will stabilize. In the meantime, don’t be discouraged by price volatility—it’s actually a good thing! It means that there’s still a lot of opportunity for growth in the market.
Cost of Electricity Can Be Reduced
The cost of electricity is one of the biggest factors when it comes to mining profitability. In some cases, it can make up over 50% of your total costs. However, there are ways to reduce your electricity costs. One way is to use a more efficient mining rig. Another way is to negotiate a better rate with your electricity provider. You can also mine CPU-based coins like $WHIVE, which incentivizes the adoption of sustainable energy.
Research Shows Long-Term Profitability is Good
A lot of people think that mining is only profitable in the short term. However, research shows that the long-term profitability of mining is actually quite good. This is because, in the long-term, the price of Bitcoin tends to go up. So, even if the profitability of mining goes down in the short-term, it is still worth it to keep mining in the long-term.