Antminer S19 XP crashed in an attempt to bring crypto miners back to profit
With the Bitcoin (BTC) price moving at a very steady pace during the crypto winter, the return on investment (ROI) of a new mining unit seems like a shot in the dark. But one mining expert explained that there may be hope for miners to return to profitability.
Phil Harvey, CEO of crypto consultancy Sabre56, told Cointelegraph that there are factors to consider when checking the potential profit of mining equipment. These are mining machine specifications, costs, real ROI and the economics of mining over time.
Analyzing the recently released Antminer S19 XP by mining rig provider Bitmain, Harvey noted that, spec-wise, it is the most efficient miner at the moment. As for costs, the cryptomining expert pointed out that the current cost of mining machines is significantly lower than in recent months, especially if purchased directly from the manufacturer, estimating that it can run about $5,600 per machine.
As for what Harvey describes as the real ROI, the consulting firm’s CEO explained that using the firm’s database, which tracks miner earnings from when the first ASIC miner came out until today, indicators show that large-scale miners can recoup their ROI of around 11 months.
On the other hand, considering the power costs for retail miners, Harvey said it could take them 15 months to get their returns. He also explained that:
“These numbers do not take into account possible leverage. In other words, miners who paid twice have to face a payback period twice as long.”
Commenting on the lifespan of the new unit, the CEO said that in a facility they operate, this type of miner can last a minimum of 36 months.
Related: What happens when 21 million Bitcoins are fully mined? The expert answers
When asked if mining can be profitable in the long term, the expert also explained that mining revenue estimates do not always work as theorized. He noted that mining revenue estimates in 2013 and 2014 averaged $4,711.28. However, the real income turned out to be only $1,047.33. He explained that:
“Basing the economics of mining on a single metric like dollars per terahash will not provide an accurate picture of the digital asset mining industry, investment opportunities or the overall market.”
Harvey emphasized that the data shows that revenue per terahash will decline, predicting a potential mining collapse. But the mining expert claimed that this affects the revenue per mining machine which he claims has shown stability over time.
