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My profits are down, is mining still profitable?

Bitcoin has been falling since it’s all time high of almost $20,000 making miners worry about future profitability. Every day I am seeing new miners asking why their profits have continued to fall. Why is NiceHash not paying as much as before? Is mining still profitable at what my card is making per day?

However, you are looking at it all wrong…

Stop looking at the USD values and start looking at the amount of coin you are mining each day. Your mining profits will always appear to be much less than when you began as the market value has been steadily dropping. In turn, when the market rises you will see your profits in USD begin to pick back up. The only effect on how much you are mining each day is dependent on block difficulty and the amount of hashing power you are supplying.

Are you in it for the long term?

Cashing out your mining profits early on may or may not be a good idea. You should analyze the market yourself when planning to convert your coins into FIAT and decide if now is a good time. I personally see mining as an investment therefore selling my coins at what I consider low values is not in my interest. I could easily sell my coins today for FIAT and in time watch market values double if I had just waited. This is a judgement call only you can make though so be smart about it.

When is mining actually unprofitable?

Mining will only become unprofitable when your electricity costs exceed your earnings. This can quickly add up and keep you in the negative if the market does not have a positive trend. At that point you are better to have invested into the coin with FIAT and waited for it to rise.