The short answer to this question is yes, and the long answer is that it is complicated. Bitcoin mining started as a profitable hobby that has now turned into a complex profession, involving professional mining firms using advanced mining hardware utilizing enormous amounts of energy. Cryptocurrency mining is profitable if you have access to cheap electricity and considerably advanced mining hardware. In 2015, a Bitcoin was priced at $300 and reached its peak in December 2017 at $20,000 per Bitcoin. Moreover, many other cryptocurrencies have witnessed similar surges and growth since its inception, including two other most popular cryptocurrencies – Ethereum and Litecoin.
Initially, people were able to mine coins simply from their home computers with reasonably sound configurations. It is likely not possible anymore due to heavy competition in the crypto world today. Simply put, the computers involved in crypto mining are rewarded for extending their computational power to solve complex mathematical puzzles. The rewards with Bitcoin are cut by half every four years, and small miners find it difficult to compete with other major mining firms and individuals who have set up extensive mining operations. Miners can join mining pools too, but it does come with its pros and cons, including reduced profits and joining fees.
The difficulty of Bitcoin mining is calculated in hash rates, and as of now, it is at an all-time high at around 120 million terahashes per second. It clearly showcases that the mining network has been growing tremendously in capacity with a lot more mining power added. The massive ups and downs in the price of cryptocurrencies have been a risk factor as well for many of the small-time miners. They are constantly worried about the increase in hash rates and energy prices without getting reliable returns. In 2020, the prices of many of the major cryptocurrencies have witnessed a fall, and it is likely to remain so until the next Bull Run.
However, the risk-takers during this time would be highly rewarded when the market stabilizes, and the financial world starts recovering after the Covid-19 pandemic. Most of the crypto analysts have been speculating a surge in Bitcoin prices and few other cryptocurrencies in the altcoins space in the near future. Whether mining is profitable or not depends on your investment and holding capacity, as mining is all about patience. Making profits from mining needs patience, time, and reasonably large investment capacity to support ongoing expenses like maintaining mining hardware, energy bills, and so on. So, crypto mining is profitable in the long-term for sure, but it is not for everyone.