Despite unpredictable price fluctuations and the high price of hardware, people are still buying cryptocurrency mining rigs in South Africa.
This is according to Bitmart CEO Jacques Serfontein, who said cryptocurrency mining still provides the miner with a great return on investment.
Cryptocurrency mining entered the global spotlight following the meteoric rise of cryptocurrency prices last year, providing users with significant returns on their investments.
Even though the price of cryptocurrencies has fallen, mining digital coins can still be a profitable enterprise in South Africa.
“People are still buying miners, a 7%-30% ROI per month based on the different cryptocurrencies out there is still a great ROI,” Serfontein told MyBroadband.
“The focus is off Bitcoin for now due to the low price, but the income on some other miners is very good.”
He said Bitmart sells a wide variety of miners in South Africa, including many which can deliver good returns.
“You can buy an Antminer Z9 that mines Zcash with an ROI period of four months, where Bitcoin miners and Ethereum miners are now sitting with much higher ROI periods.”
ASIC versus GPU
South African PC gamers will be relieved to hear that local cryptocurrency miners have shifted their focus from graphics card rigs to application-specific integrated circuit (ASIC) miners.
These rigs are specifically built for mining cryptocurrency and can provide much greater returns – as long as the currency they are mining is not ASIC-resistant.
“ASIC miners are for sure the most popular, we clearly see that ASIC miner sales outperform GPU rig sales by over 200 to one, but it’s all dependent on what the miners can mine and what is most profitable,” said Serfontein.
If a GPU-only algorithm gets a new coin that is very profitable and is adopted into the market, we could see GPU rig mining returning again, he added.
“Look at what happened to Ethereum. The Antminer E3 replaced the GPU rigs mining Ethereum thanks to its lower cost, much lower power consumption, and a far better hashrate – it’s a no-brainer.”
Serfontein said Bitmart has stopped providing cloud mining services to customers, however, as there is more profit to be made by customers when buying the hardware.
“Owning a rig makes a lot more profit than cloud mining and clients keep comparing earnings with online calculators that don’t factor in hosting costs, so it was a hard sell,” he said.