KS3 Miners: The Lure of High Returns and the Risks Involved
In the realm of cryptocurrency mining, the choice of mining equipment is a critical decision. Recently, the KS3 miner has garnered significant attention due to its high daily return of 2200 USDT. According to quotes on asicfinder.com, the Iceriver KS3 miner is priced at 45,400 USDT/pcs, while the Antminer KS3 miner is priced at 36,500 USDT/pcs. However, is it a wise investment to purchase a high-priced KS3 miner? This article aims to delve into this question.
Firstly, it’s essential to understand that the profitability of a miner is determined by a multitude of factors, with the network’s hashrate being one of the most crucial. Presently, the hashrate of the Kaspa network stands at 1.5PH, i.e., 1500 Th. The hashrate of the KS3 miner is 8.3 Th, which implies that as soon as the first 180 miners start operating, the profitability of this miner will drop by half. If we boldly assume that 10,000 KS3 miners come into operation, the total hashrate would reach 81,500 Th, resulting in a 90%-99% drop in profitability. Therefore, the theoretical $2000 per day is far from being a reality, and chances of even making a few hundred dollars per day are slim to none.
Secondly, the miner’s manufacturer could also influence the profitability. For instance, Bitmain might fire up a batch of miners before their clients receive theirs, depriving customers of a few hours of decent profit. The overall profitability will probably dwindle to double digits at best.
Moreover, we must consider the adjustment of mining difficulty. An increase in difficulty will lead to a decrease in profitability. Looking back at the situation of Dash D3 miner, A3 miner, and Kadena miner in 2017, we can see that purchasing expensive ASIC miners for a single coin can pose significant risks.
Additionally, the purchase of a miner should take into account the return on investment period. While the payback period of the KS3 miner might be less than 20 days, this is merely a trap. You might have to shell out $36,000 and wait for the miner to arrive, but by the time you receive it, the payback period could have increased ten to twenty-fold. Daily profits will plummet, and those who receive the ASIC miners first will recoup their investments faster.
Given these risks, some might argue that it would be a better choice to use these funds to buy Bitcoin or diversify the investment among the top 10 coins on the coinmarketcap website, then wait for the next bull run.
However, we also need to consider the issuance of Kaspa. By January 1, 2023, approximately 15.3 billion KAS will have been mined (53.3% of the total). By January 1, 2024, about 21.9 billion KAS will have been mined (76.3% of the total). By January 1, 2025, approximately 25.1 billion KAS will have been mined (87.4% of the total). By July 10, 2026, about 95% of all KAS will have been mined. When 95% of the coins are mined, the interests of miners will also become unclear.
In conclusion, while the high return rate of the KS3 miner is alluring, the hidden risks behind it cannot be ignored. When considering a purchase, investors need to consider various factors such as hashrate, difficulty adjustment, return on investment period, and currency issuance. Only by fully understanding and balancing these factors can one make an informed investment decision.
