In the last five years, an increasing number of people are thinking about mining cryptocurrencies. Mining is becoming more accessible and understandable. All the necessary information is chewed up and spread out on the Internet. But people still feel fear and distrust of this type of earnings. Why? Yes, because mining lives according to the laws of the market and is subject to cycles.
In fact, it is a seasonal business. And if you are a miner, you are automatically a “native miner”, i.e. a “bull”. Your profit grows along with the bitcoin chart. If the market is bearish, then you will have to survive in a small plus, zero or even minus, depending on the cost of electricity, which is often the deciding factor.
At the time of accumulation – cryptozima – you should already have the money set aside from the last “bull run” to continue to mine more coins and buy more cheap equipment, expanding and improving your farm.
By the way, the prices of equipment have a direct correlation with the prices of crypto assets.
Dependence of the cost of video cards on the cost of crypto assets Dependence of the cost of video cards on the cost of crypto assets
And when the fear and greed index in the market goes off the scale in the direction of fear, inexperienced miners who have flown into mining on hay, throw off equipment at a loss, disappointed in this type of earnings.
Fear Index Fear Index
This is exactly the moment on the market right now. The index of fear and greed at the moment reached the mark of 6. We saw this figure for the last time in 2018.
Let’s analyze the prices of equipment depending on the market situation.
Mining Farm Mining farm
November 2020 – video cards in the area 20 000 – 30 000 rubles. This time is just before the start of the bull run. One can only imagine how much money was earned and how quickly the people who entered mining at this time recouped their investments.
May 2021 – 80 000 – 200 000 rubles – only six months have passed, bitcoin updated ATH in April, and card prices soared 3-4 times. And many people bought cards at these prices out of greed.
What do we have now?
June 2022 – 26 000 – 100 000 rubles – the top cards today are actually sold at cost. The secondary market is teeming with offers of cards.
Is the sweet price itself now? No one knows. But it is clearly lower than the figures that were offered just 2 months ago: in March, prices reached 300 thousand rubles per card.