Is Cryptocurrency Mining From Home Worth It?

Is Crypto Mining at Home for You?

There are numerous factors to consider when deciding whether you want to try crypto mining: Do you view it as a hobby? Do you want a side hustle that can generate passive income? Or maybe you want to put your PC’s graphics processing unit (GPU) to use when you’re not gaming?

Whatever the reason, it may be a good idea to start small to see if crypto mining is right for you. If you already have a PC, you can follow a fairly straightforward process to start mining right away. To start, you can download one of various crypto mining software programs that will mine on your PC’s central processing unit (CPU). This doesn’t require any investment in a GPU or a specialized mining rig. Be sure to do your own research and verify that the software comes from a reputable source. As is the case with investing in crypto, you probably shouldn’t make a large investment in crypto mining rigs without trying it out first. Some of the pricier crypto mining rigs are built using field-programmable gate arrays (FPGAs) or application-specific integrated circuits (ASICs).

Home-Based Crypto Mining Profitability

If it’s simply for fun, mining on your existing PC can be a good way to dip your toes into the world of crypto mining. With this setup, your PC generally mines crypto when you’re not using it, like when you’re away at work or sleeping. With a normal PC, this could generate anywhere from less than a penny to around a dollar a day on the high end ($0.0001 – $1 USD). If you’re a gamer with a fast GPU-powered PC, you could generate $1 – $10  a day, or maybe more.

That being said, once you factor in electricity, the profit per day tends to go down significantly. In fact, retail mining can often be profit neutral (or negative) because of secondary concerns like the cost of energy. For example, if you earn $90 worth of crypto in a month, but you don’t notice that your electricity bill went up by $130, you may not realize you actually spent more than you made ($90 - 130 = -$40).

The price you pay for electricity per kilowatt-hour (kWh) is one of the most important factors to consider if crypto mining profitability is the goal. In the U.S. the average price (2021) is about $0.15/kWh. That being said, this can vary widely depending on the state, anywhere from $0.09 – $0.33/kWh. Globally, this variation is even larger, from free to nearly $0.40/kWh. Unfortunately, short of moving, there’s usually not much you can do about your electricity prices, although some retail crypto miners do use solar panels to reduce their electricity costs. Some clever crypto miners also run their miners more — or only — during the winter months, as these mining setups can generate significant heat. While this waste heat can be a problem at other times, those in colder climates can harness this heat in a way that heats their home — while mining crypto at the same time!

Types of Crypto Mining Rigs

Beyond electricity, the hardware you choose — and the amount of it — is the other key factor to consider when building a profitable crypto mining operation. If you’re serious about mining significant amounts of crypto, you need serious mining rigs — plural. One of the most common setups is a GPU mining rig, which is usually a frame and a motherboard with 6 – 12 GPU cards plugged into it. Some passionate GPU miners may have multiple frames with numerous GPUs in each. One manufacturer has even released what they call crypto mining processors (CMPs), which are GPUs optimized for crypto mining, and that can’t be used for gaming (as they can’t be connected to a monitor).

Some very hardcore retail miners may even have a few ASIC miners, although these are quite expensive (and noisy). Another trend for retail mining is the adoption of FPGA miners, which can be optimized to be faster than GPU miners, while being more flexible than the ASIC miners which only mine specific coins or algorithms efficiently. However, FPGA miners are typically for more advanced retail miners. Some passionate crypto miners may have a setup that includes a combination of all these crypto mining rigs — GPUs, FPGAs, and ASICs.

These specialized mining rigs — FPGAs and ASICs in particular — are preferred by some as their hash rate is much higher, giving them a higher rate of return in the form of block rewards. FPGAs and ASICs are also able to generate this hash rate much more energy-efficiently, which is another reason why they are seeing more use as the crypto mining sector becomes more competitive.

What Is Crypto Mining at Home Going To Look Like?

While most experts say that crypto mining from home will always exist, some of them also say that its heyday has already come and gone. It may end up being more of a niche hobby that’s done by crypto enthusiasts and those with technical backgrounds. This is because large crypto mining operations with warehouses full of ASIC mining rigs are now dominating the mining hash rate on most mineable blockchains — including bitcoin (BTC). That being said, there remains a sizable retail mining community that can be found crowdsourcing future ideas, mining strategies, and ways to exist — and even profit — in an established crypto industry that is now part of the public consciousness.