How Was Cryptocurrency Mining Profitability In 2019?

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2019 was a hectic year for cryptocurrency mining profitability. The first 6 months, the Bitcoin price went up. The next 6 months, the price went down. This strongly impacted our profits, and you are going to discover how.

2017 and 2018 were very profitable in crypto mining years. At least for us. Despite the 2018 crash.

But the Bitcoin price at the beginning of 2019 was so low (3,200 USD) that we were wondering if this year would impact a lot our cryptocurrency mining profitability. 

Everyone around me who is involved with cryptocurrencies was thinking the same: “Matt, now the price is too low, you will never manage to pay off the crypto mining machines you are going to purchase.”

What they forgot is that the lower the price of Bitcoin, the cheaper the machines, so the more you can buy to remain profitable.

At Summit Mining, we purchase, install and manage crypto mining equipment for everyone who wants to invest in crypto mining. We have three main advantages that can help us increase the cryptocurrency mining profitability: 

1. We have access to wholesale prices.

2. We have access to low electricity prices.

3. We do not pay high shipping fees.

Our cryptocurrency mining profitability in 2019

Knowing this, we believed that we could leverage them all. As a result, we ended up the year with the following returns of investment in 2019, knowing that we mined some Bitcoin, Dash, Litecoin and Zcash:

📈January – 7.80%

📈February – 9.11%

📈March – 19.39%

📈April – 15.15%

📈May – 30.12%

📈June – 32.46%

📈July – 12.36%

📈August – 8.15%

📈September – 2.90%

📈October – 2.79%

📈November – 1.09%

📈December – 1.30%

The return on the investment was calculated on the last day of each month and taking into consideration that our clients would not hold cryptos but exchange them into fiat straight away.

That makes an average return on investment of 11.89%… per month! In other words, if you invested €10,000 with us at the beginning of January 2019 then you would have mined around €14,260 by the end of December 2019. While still owning valuable crypto mining machines. And that is without even considering the rise in price in the crypto you would have mined. That said, please bear in mind that we cannot guarantee this level of cryptocurrency mining profitability and that every year will provide the same results.

One thing we didn’t mention is that the machines we purchased are mutualized between all our clients. This helped us purchase the most powerful machines while the Bitcoin price was dropping. So everyone could benefit from these machines, and this limited a lot the negative impact of the price fall.

You wonder how you can increase your cryptocurrency mining profitability?

If you want to mine cryptocurrencies profitably, we recommend you to forget mining with GPU. Get professional ASIC miners, which are machines dedicated to crypto mining. Then, you need to pay attention to the following components:

  • The price for the crypto mining equipment (ASIC miners in our case),
  • The price for shipping,
  • The electricity price per kW,
  • The crypto mining hosting (aka mining farms) reputation,
  • All extra fees from the hosting companies (cables, rent, supervision, security, maintenance, dusting, etc.)
  • Renewal strategy of your ASIC miners.

It is possible to mine alone. But it is not easy at all. Instead, you can also join us and we will manage everything for you. We only place orders once per month. Like this, we can place one larger order that allows us to negotiate the price for the crypto mining equipment. Same for the electricity. All ASIC miners installed under one account in various mining farms and this allows us to diversify the risks. And because we know the crypto market well, we know what type of equipment should be purchased, when to renew it, etc.

If you have some friends whom you think can be interested to get similar results in 2020, share with them this article. You will even be able to receive a referral fee.

You can contact us to learn more about crypto mining. Meanwhile, we recommend you to join our community of miners on the French Discord group or on the English Discord group.

Happy crypto mining in 2020 !

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