A structured approach to evaluating the viability of a cryptocurrency mining operation, from power cost modelling to hardware selection and ROI timelines.
Cryptocurrency mining feasibility depends on three variables that interact in non-obvious ways: hardware efficiency (hashrate per watt), electricity cost (€/kWh), and the network difficulty adjusted coin price. Any feasibility study that ignores the dynamic relationship between these factors will produce misleading results.
Hardware selection should start from efficiency, not hashrate. The best ASIC miners in any given cycle typically have an efficiency gap of 2 to 4x compared to mid-tier hardware, and that gap compounds daily in your operating cost. At an electricity price of €0.07/kWh, even a 10% efficiency improvement translates to a meaningfully different break-even horizon.
Modelling ROI requires scenario analysis across a range of coin prices and difficulty increases. Historical difficulty growth for Bitcoin has averaged 6 to 8% per month during bull markets, which means that hardware purchased at peak market conditions can become unprofitable within 12 to 18 months even if the coin price holds. A responsible feasibility study presents a distribution of outcomes, not a single projection.
