According to Steve Bassi, a long-term investor investors may do well by mining coins in the near future and selling them when the block reward decreases in 2024.
Crypto miners faced several difficulties during the previous year, including a change in profitability, from the massive departure to the weak market. However, if we consider its long-term possibilities, crypto mining may still be viable, according to Steve Bassi, a specialist in Bitcoin (BTC) and Ether (ETH) mining.
With power expenses accounting for more than half of predicted income and application-specific integrated circuit (ASIC) miner costs ranging from $8,000 to $12,000, it is currently thought that it would take a miner five to six years to recoup the cost of one device. Speaking on the subject, Bassi stated that although mining income may appear dismal soon, things would improve with time.
He stated that overall, they anticipate another BTC halving in 2024. Therefore, mining in the near future and maybe selling when the block reward decreases in 2024 could be profitable for long-term investors. Since the equipment isn’t built to survive that long, things might get difficult for miners if costs don’t drop in the upcoming years. In three to five years, mining equipment depreciates, according to Bassi, and some components require total replacement. He believes that operators have a fair possibility that they’re going to have to replace a power supply or fan in a big number of these devices out to 60 months on these devices. The mining expert mentioned the water-cooling features of the more recent Antminer devices and their higher efficiency.
JPMorgan strategists noted earlier this month that the cost of generating BTC decreased from $24,000 to $13,000 at the beginning of June. Since September of last year, this figure has never been lower. Some believe that the decreased production costs will have a negative impact on asset values even if they may lessen the selling pressure from miners.
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