When running a Bitcoin mining operation, there are two sides to the equation: reducing costs, and maximizing profit. The first part of that equation is important to figure out, but can be easily maintained once you have it solved. When it comes to squeezing out every bit of profit available to you though, it becomes a game of attacking opportunities as they present themselves. And that means switching which crypto you mine to reap the most rewards.
But before you focus your energy on mining the most lucrative blockchain, it’s important to calculate those costs. Calculating your power costs, hardware investment, eventual hardware replacement, and pool fees is crucial. Without understanding where your breakeven point is, you’ll be mining blindly, and possibly at a loss, something you’ll want to avoid.
Once those costs are determined though, you’re ready to start looking at the market. Many factors need to be taken into account when determining which cryptocurrency you want to mine. A crypto’s price of course matters, but so does the size of block rewards, mining difficulty, and popularity.
So for example, BTC might have the greatest market share and most lucrative block rewards at the moment due to its current price, but with its age and popularity comes higher mining difficulties and greater competition. A new crypto might have a comparatively easier mining difficulty and less competition, but it will also likely have lower prices and be less desirable on the market.
To best assess which token represents the best opportunity at the profit, several mining calculators can be found online. These tools take your costs into account, and will provide you an estimate of how much profit can be made by mining most of the popular cryptocurrencies on the market. These are worth re-visiting periodically to see if you might be missing out on a great opportunity.
While you might want to periodically change which blockchain your operation is mining, it’s always good idea to settle on a reliably profitable blockchain that you can believe in. Bitcoin SV, for example, has been designed to allow for massive blocks, filled with more transactions than any other blockchain can achieve. That was done with miners kept in mind, and they will find that, if they mine the BSV blockchain, they’ll not only receive block rewards, but consistent profits from transaction fees.
In comparison, while BTC might sometimes offer a better profit from block rewards, it does not scale. As a result, transaction fees gained from mining this chain are negligible, and it lacks the long term potential that comes with the BSV blockchain. It might make for a great opportunity sometimes, but is not a great choice to mine all the time.
Maximizing profits is a huge part of why people get into Bitcoin mining. Carefully managing which coins you mine, and when, is just another important part of making that happen.