As the resurgence of cryptocurrency prices threatens to ensnare retail investors once more, there’s a renewed interest in cryptocurrency mining. However, this time around, there’s a shift towards targeting CPUs instead of the traditionally favored graphics cards.
Despite the ongoing unprofitability of GPU mining for many, CPU mining has emerged as a lucrative alternative. The Ryzen 9 7950X, boasting 16 cores, has garnered significant interest due to its efficient performance, consuming less than 100W of power. Unlike pricier high-end GPUs, this CPU offers accessibility at a reasonable cost, making it a swift avenue for turning profits.
Qubic, a cryptocurrency, is fueling the profitability of CPU mining, boasting a daily profit of $3 on an AMD Ryzen 9 7950X. This figure surpasses earnings from GPU-based mining by more than double. The significant gap in profits is attracting miners towards CPU-based configurations, especially those equipped with support for AVX2/AVX512 instructions like AMD’s Zen 4 architecture.
The 16-core Ryzen 9 7950X is proving to be highly profitable in mining operations, yielding a $3 per day profit. This figure is twice as much as what the Ryzen 9 5950X, lacking AVX512 support, can achieve. Consequently, there’s a surge in demand for this Zen4 CPU, resulting in its scarcity on store shelves.
Though I would advise against hastily investing in a mining rig solely for Qubic, mainly because the cryptocurrency isn’t listed on any prolific CEX (centralized exchange) such as Binance or Coinbase.
Qubic came into existence in November 2023 and has witnessed a remarkable 341% price surge since February 12th.
Presently, it can only be traded on platforms like SafeTrade and TradeOgre, with roughly a couple of million dollars’ worth of the coin being traded within a 24-hour period.
Priced at approximately $600, the 7950X CPU emerges as a cost-efficient alternative to high-end GPUs, boasting a faster return on investment (ROI) of around 183 days (excluding platform cost). Additionally, the CPU consumes less power than GPUs and retains good resale value, but if you factor in the additional costs of DDR5 memory, power supplies, motherboards and cooling solutions paired with electricity costs you’re unlikely to be able to get a return on investment at all.
However, it’s crucial to note that the stability of these advantages hinges on the consistency of Qubic’s pricing, which is subject to market conditions. With Bitcoin hitting new all-time highs, a potential correction in the crypto market could lead to a tumble in altcoin prices, impacting Qubic as well.
Moreover, while Qubic has a burn mechanism, currently, only approximately 8.4% of tokens have been minted out of a maximum supply of 1 quadrillion, expected to be reached by 2041.
Furthermore, as with all proof-of-work tokens, increased demand for mining and a higher number of miners on the network can escalate the difficulty of acquiring tokens, potentially reducing profits.
However for those who currently own a Ryzen 7000 series CPU, this could be a lucrative source of temporary income.
