What are the best cryptos to mine with ASICs in 2024, and how much can miners expect to earn?
The global crypto mining market, which reached nearly $2.93 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 12.2% and reach $8.26 billion by 2032.
A 2023 report by the Energy Information Administration (EIA) highlighted that crypto miners used as much electricity as the entire country of Australia, accounting for about 1 percent of global electricity demand.
In the US alone, crypto-mining operations accounted for up to 2.3 percent of the country’s total electricity demand.
Meanwhile, the crypto mining market has seen significant shifts, with the US becoming a major hub for Bitcoin (BTC) mining, hosting nearly 38 percent of all Bitcoin mining activity in October 2023.
Adding to the challenges facing crypto miners is a new proposal from President Biden’s fiscal year 2024 budget, which includes a 30 percent excise tax on electricity used for mining cryptocurrencies.
This move aims to raise about $3.5 billion over the next decade. The tax will be phased in over three years, starting at 10 percent in the first year and escalating to 30 percent thereafter.
With these considerations in mind, let’s delve into the details of what makes for ideal mining conditions and the best cryptocurrency for mining in 2024.
Things to consider before you start mining crypto
Venturing into crypto mining requires a strategic approach, given the competitive landscape of the industry.
First, the choice of cryptocurrency is extremely important. With thousands of cryptocurrencies available, choosing a profitable cryptocurrency to mine is essential.
Factors such as the coin’s market stability, demand and the complexity of mining algorithms should guide this decision.
Energy consumption and cost cannot be overestimated. Mining is notoriously energy intensive, and with electricity prices fluctuating worldwide, calculating operating costs becomes essential.
Meanwhile, regulatory compliance and tax obligations in your jurisdiction are crucial. With countries taking different stances on cryptocurrency mining – from outright bans to welcoming it with open arms – it is essential to understand and abide by your local laws and tax regulations to avoid legal pitfalls.
Finally, the choice of hardware is another critical consideration. The mining landscape has developed a lot over the years. The choice of hardware affects not only the efficiency of your mining operations, but also their longevity and scalability.
Types of mining hardware
Initially, mining began with central processing units (CPUs), the basic form of computing power in any computer. Although accessible, CPU mining is significantly less efficient compared to newer technologies, making it largely obsolete for competitive mining operations.
The next leap came with graphics processing units (GPUs), which are more powerful than CPUs and capable of solving complex algorithms faster.
GPU mining has become popular for its improved efficiency and ability to mine more profitably, although it also requires more energy and generates more heat.
Field Programmable Gate Arrays (FPGAs) have introduced even greater efficiency by allowing miners to configure these chips for mining, offering better performance than GPUs without as much power consumption.
FPGAs strike a balance between customizable hardware and the efficiency needed for effective mining, but they can be complicated to program and are often more expensive.
Application Specific Integrated Circuits (ASICs) represent the pinnacle of mining technology, designed specifically for mining cryptocurrencies.
ASIC miners are the standard for professional mining operations in 2024, especially for mining Bitcoin, due to their superior processing power and energy efficiency.
They offer unmatched efficiency and speed, but come with a higher price tag and quickly become obsolete due to the constant evolution of mining technology.
Best Coins to Mine in 2024: ASICs Based
Bitcoin (BTC): most popular crypto to mine
As the most popular choice among miners, Bitcoin mining requires significant computing power.
To mine Bitcoin effectively, one needs advanced ASIC equipment, for example an Antminer S21 Hyd. It is one of the most powerful mining hardware available, designed to tackle Bitcoin’s complex mathematical puzzles.
However, mining profitability is not guaranteed and depends on various factors. Using the Antminer S21 Hyd as an example, miners can expect to generate around $26.93 in daily income.
Still, that comes with an average electricity cost of $21.74, assuming an electricity rate of $0.169 per kWh in the U.S. Electricity costs can vary greatly depending on your location, significantly affecting your bottom line.
As a result, the net daily profit averages about $5.19, according to data from Minerstat. From an annual perspective, using a single Antminer S21 Hyd miner can net about $1,894 in profit.
Still, this figure is an estimate that assumes consistent operational conditions—a scenario that is rarely true given the volatility of electricity prices and Bitcoin’s market value.
You should therefore approach Bitcoin mining with a balance of optimism and pragmatism, thoroughly analyzing your potential investment in hardware and the ongoing cost of electricity. This careful consideration can make the difference between a profitable venture and an expensive endeavor.
Kaspa (KAS): one of the most profitable cryptocurrencies to mine
Mining Kaspa (KAS), a cryptocurrency popular on Minerstat, can be especially useful for those looking to maximize profitability through ASIC miners.
For example, with the Antminer KS3, one of the leading ASICs for mining Kaspa, miners can expect to generate a daily income of around $99.14.
After factoring in an average electricity cost of $12.39 – based on a general rate – the daily profit stands at an impressive $86.05, as reported by Minerstat.
Similarly, the IceRiver KAS KS3 offers a daily profit of $82.45, while its counterpart, the IceRiver KAS KS3M, generates $57.95 in profit.
Additionally, the annual profit forecast for using an Antminer KS3, which could theoretically reach up to $31,408, is subject to significant fluctuations.
Therefore, you need to navigate these variables carefully. You need to prepare for potential market shifts, regulatory changes and the ever-present risk of larger mining problems, all of which could affect the long-term viability of Kaspa’s mining operations.
Dash (DASH): privacy-focused crypto to mine
Mining Dash (DASH), a cryptocurrency known for its emphasis on privacy and fast transactions, also relies on ASIC miners for their efficiency and processing power.
When operating an Antminer D9 for Dash mining, the daily earning potential is around $20.11. However, this income is offset by electricity costs, which average $11.03 daily, resulting in a net profit of about $9.08 per day, according to Minerstat data.
In comparison, a less powerful ASIC like the Antminer D7 yields a significantly lower daily profit of $2.38.
The profitability of mining Dash with an Antminer D9 or any mining hardware is subject to numerous variables. Annual profits, which can potentially reach $3314 with an Antminer D9, are affected by fluctuating electricity prices, changes in Dash’s market value, and adjustments in mining difficulties.
Key considerations before choosing the top crypto to mine
Remember that the profitability of mining any cryptocurrency is heavily influenced by electricity, hardware and maintenance costs (if any), which vary greatly around the world.
While the calculations provided are based on average electricity rates in the US, countries like Ireland, with higher electricity costs (around $0.52 per kWh), or Iran, where electricity may be subsidized for low-income citizens, will see different profit margins.
Additionally, the volatile nature of cryptocurrency prices, mining difficulties, and market demand can all significantly affect your potential earnings.
Changes in these factors can improve or reduce the profitability of your mining operations overnight. Therefore, it is crucial for miners to monitor these variables and constantly adjust their mining strategies accordingly.
Frequently Asked Questions
What is the best cryptocurrency to mine for beginners?
For beginners, the best crypto to mine now includes options like Kaspa (KAS) and Dash (DASH). However, you should be aware of the risks involved. Market volatility can greatly affect profitability, and the cost of electricity and hardware maintenance can outweigh earnings, especially in regions with high energy prices. Beginners should approach mining with caution, do thorough research and consider the potential for both profits and losses.
What is the easiest crypto to mine?
The easiest cryptocurrencies to mine are usually those that can be mined with CPU and GPU setups, which are cheaper and more accessible to beginners compared to ASIC miners. Examples include coins such as Monero (XMR) and Zcash (ZEC), which were designed to be resistant to ASIC mining, thus leveling the playing field for individuals with less powerful hardware. Although CPU and GPU mining can be more accessible, it often yields lower profits due to the lower processing power. This, combined with the cost of electricity and the potential for greater problems as more miners join the network, can result in minimal earnings or even losses for the miner.
What are the best crypto mining sites?
When it comes to finding the best crypto mining sites, it is crucial to look for platforms that offer detailed analytics, mining profitability calculators, and up-to-date mining pool statistics. Websites like Minerstat and NiceHash are highly regarded in the mining community for providing insight into the profitability of various cryptocurrencies, including emerging coins that are considered the best crypto to mine right now.
Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only.
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While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
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