Bitcoin and Ethereum are neighbors in the TOP-10 cryptocurrencies. Today, as BTC loses its positions, many users are contemplating whether it's worth engaging in Ethereum mining. With graphic processors in hand, people have learned to earn decently. Many have started utilizing this opportunity in the online world.
Considering the cost of resources required for profitability, earnings were significant. The cryptocurrency market shook, Bitcoin sharply fell, relinquishing its top positions to less demanded coins. Is mining still profitable amidst these events? And how will Ethereum mining proceed? Let's discuss information from Crypto News.
Profitability of Ethereum Mining
Mining profitability today is not as it was a month ago. But it's still an opportunity to make good income with a graphic processor. However, if you have to buy equipment, considering resource costs, the profit may be insignificant, meaning it's not worth the time and investment.
Graphics cards are predominantly used for mining, generating cryptocurrency. On average, one card can create currency worth about $5-6 per day. The user retains a net profit of $4-5. Compared to the figures a month ago, profits could be around $20-30 per day.
By purchasing additional equipment and considering the current situation, the level of income, the return on investment can be achieved after 5-6 months of intensive work. There is very little time left for mining. Therefore, it should be understood that investments will not pay off. Consequently, buying a graphics processor now is an imprudent decision.
How to Determine Profitability?
To determine profitability, a special website is used. It allows calculations based on:
сharacteristics of the existing equipment;
electricity costs;
selected coins for mining.
The service calculates the profitability of different coins. To understand whether mining will still be profitable, several factors should be considered: the cost of Ethereum, mining difficulty, heating, operational costs.
Coin cost is one of the main factors. Ethereum started at around $700. By May, its value reached $4000. Now its price is less than half of that. But mining in a pool provides significant profits with the cryptocurrency valued at $4000. This is a profitable investment.
Mining difficulty in Ethereum is the search for the next block. Blocks are created at a periodic rate, and the network monitors the time interval of their creation, adjusting the difficulty if necessary. This is necessary to compensate for any deviations.
This means that the more power is added to the network, the harder mining will be. Due to significantly reduced profitability, mining Ethereum has become easier. Since the number of users has decreased, mining difficulty has automatically decreased.
The heating of the processor does not allow it to work at full capacity. Reaching a certain temperature threshold, the device's operation slows down. In the winter, the graphics processor can replace a heater, thereby compensating for the consumed electricity. In the summer, air conditioners will help prevent the device from overheating. In this case, the profit obtained from mining will be spent on cooling the processor. Miners need to remember that the main calculation of profit in their case is electricity costs.
The user receives a commission for adding transactions to blocks. The transaction payment depends on how loaded the network is. Allowing the determination of the gas fee, Ethereum uses an auction system. Miners propose a competitive price to add a transaction. It is necessary for the transaction to be conducted as quickly as possible, meaning you should pay a higher fee than other participants.
Prospects for Ethereum Mining
Mining Ethereum still brings income. If there are no serious changes in the cryptocurrency market, this venture will remain profitable. But users should remember not to buy new equipment. It's better to use what you have. This is because Ethereum might end this year after the merger with the Ethereum 2.0 network.
