How long will Monero mining remain profitable?

Question

I am worried about the profitability of Monero mining, because according to yahoo finance:

There will be a total of 18.4 million Monero’s XMR coins in circulation by May 31, 2022. And the project has already mined more than 90% of it

Also according to a post on reddit, right now the block reward is 2-XMR and it will be 1-XMR before January 2021. So my concern is if I setup a rig for mining Monero this year, will I be able to reach the breakeven of my investment if it becomes less profitable after or before 2022?

Answer 1

Your mining profitability is determined by your capital outlay, cost of electricity, price of Monero, your hashrate compared to the network hashrate, network tx volume/fees and the block subsidy.

Just because the block subsidy is currently under 2 XMR now, and will eventually drop to just 0.6 XMR (the tail emission), does not alone dictate your profitability.

So,

How long will Monero mining remain profitable?

As long as a miners costs (equipment, electricity, space) are less than the revenue they generate (the amount of XMR they earn and the exchange rate they need to exchange at to pay for their costs).

Answer 2

If the profitability of Monero goes down, less people will mine, meaning the profitability will go back up until it reaches an equilibrium. Ignoring hardware improvements, your profit after paying for electricity will be roughly the same now as it would be in a year.