Ethereum Mining: Is It Better Than Buying To Hold?
Ethereum Mining: Is it Better than Buying to Hold? I didnt know much about Ethereum back in April 2016 when I started mining. I bought more in March 2017 and, since then, the price has taken off! I have already cashed out a fantastic profit, but I am still holding a significant number (and mining more). I have received tons of emails asking whether its better to buy or mine Ethereum. In this post I will explain how I got involved in Ethereum, how I have been mining and Ill investigate whether mining is still worth looking at or if its better just to buy and hold. Ethereum is a platform for creation of decentralized applications running on blockchain, through the use of smart contracts. Clear as mud?! Dont worry, thats a bit too techy for me too. This video does a much better job of explaining exactly what Ethereum is. When I first started mining, Ethereum cost $10-11. It started 2017 at the same sort of price, but by the beginning of March it was up to $17. I bought more at $40-45 using Bitcoin profits and by 1st April the price hit $50. On 1st May it was 78, 1st June was $220 and 1st July was $260. The highest price reached was $388 during June and I was fortunate to sell around $100,000 worth at $370-380. Its very tough to time the top of the market, but I wasnt far off with that one! It wasnt that I wanted out, far from it. I still hold the majority of my ETH and I plan to for quite some time. However, I did want to ensure a return on my investment and remove all risk going forward. My remaining Ethereum has cost me nothing. Click here for the current Ethereum (ETH) price. As with my Bitcoin, I started mining Ethereum through Bitclub Network. I bought four GPU miners at $1,000 each and they started mining on 1st April 2016 at the Data Centre in Iceland (cheap coolin Continue reading >>
How To Invest In Ethereum (and Is It Too Late)
Home How To Invest In Ethereum (And Is It Too Late) How To Invest In Ethereum (And Is It Too Late) Ethereum has become a popular cryptocurrency alternative to Bitcoin over the last year. However, unlike Bitcoin and rival currency Litecoin, Ethereum has been adopted by many companies and startups as a way to transact (and more). In the cryptocurrency wars, I like to view Ethereum like the diamond of the currencies - it has both a intrinsic value and an industrial value. Compare this to Bitcoin, which operates like gold - not much industrial value, but people buy it and sell it based on it's intrinsic value to the holder. Given the popularity of Ethereum, many people are curious about what it actually is, how it's different than Bitcoin, and how to invest in it. It's also important to note the risks of investing, and the potential to mine it and create your own wealth of Ether (the actual monetary unit of Ethereum ). Before we dive in, it's important to note that to look at, use, and transact in Ethereum, you need a digital wallet. We recommend Coinbase because it's free, has a great app, and they give you a bonus for depositing $100 . Check it out. Ethereum is basically software that is decentralized and allows developers and programmers to run the code of any application. Wait, what? I thought Ethereum was money... well it has a monetary aspect. You see, Bitcoin uses a technology called blockchain specifically for conducting monetary transaction - it's a straight currency. Ethereum uses blockchain technology to allow the creation of applications that can be executed in the cloud, can be protected from manipulation, and much more (some stuff getting too technical for me here). However, a bi-product of this is that Ethereum uses a token called Ether, which is like Bitcoi Continue reading >>
Is Ethereum Mining Profitable And Worth It In 2017?
Is Ethereum Mining Profitable and Worth it in 2017? As the price of Ethereum hovers around $300, you may be wondering to yourself whether or not its worthwhile to begin mining. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time usually becoming less profitable as the coin matures. There are three important factors to consider when figuring out if Ethereum mining will be profitable for you: Putting it simply, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network, this difficulty increases. The Ethereum mining difficulty had been steadily increasing since July but recently dropped from a high of ~3,000T to ~1,500T. This dip was caused by the Byzantine fork but isnt as advantageous as it seems. Even though the difficulty decreased, the block reward also decreased from 5 ETH to 3 ETH effectively canceling out any benefit from the difficulty change. You can view the past and current difficulty on the Ethereum network at CoinWarz . The hash rate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction. New miners are constantly entering the market with better and faster hash rates. Theres more to buying a miner than just picking the one with the highest hash rate, though. Miners with a high hash rate usually come with a high price tag. On top of that, they also typically use more electricity as they operate which could further drive your c Continue reading >>
Bitcoin & Cryptocurrency Mining Contracts | Genesis Mining
Its hard to review anything when not possible to use it yet due to purchasing with a credit card, but once I am able to use it I will update my review Been sold out of contracts for a while now and Im exited to have finally copped one before theyre gone. So happy for the wonderful opportunity to buy another Ether Contract. I love it - Thank You While we think that Ethereum may turn to POS in the coming future, we have a fantastic future to mine it at a profit with Genesis Mining. If it DOES go to POS instead of mining, then we can move to a variety of alt coins that are nearly as profitable and every bit as much fun. Give Genesis Mining a go and see why it is better than buying coins directly. I think that my purchase was a good thing. And this thing will bring me a lot of benefit. I expect to have a good return for this investiment. Finally the mining contracts are back. It's harder and harder to find mining contract and the Genesis Mining ones are the last decent ones around. Most of them will never payback. I'm using Genesis for 1 year right now and satisfied. Zcash cash priceis riseing, so this pachage is quite profitable, better than buing your own mining sistem at home. Even if PoS starts, there are alternatives.Because I heard that the reputation is good, I have decided mining for the first time as GenesisMining.I am looking forward to April when mining starts. I have bought the etherium and bit coin for the last two years.I am very excited and am very pleased to see the benefits.I have been informing others a lot and invested a lot of people.If I have a chance, I would like to invest and recommend more. I have ETH contract with Genesis for 2 years and one with same Hash rate with a competitor but 1 year contract. Genesis has consistently paid out more than the Continue reading >>
Ethereum Mining Is Profitable, But Not For Long
Ethereum mining is profitable, but not for long Venture Capital | Investment Analysis | Deal sourcing + Execution. Previously founded and exited a profitable tech company in India You can also reach me at @shekhartee You can create a community post just like Shekhar here . This is a constant question, especially now that the price of Ethereum is rising. This year, Ethereum has seen an almost 20x jump in price. This increase has led people, who hadnt considered cryptocurrency, to sit down and become suddenly extremely interested. When this happens, I believe that most of the biggest profits have already been made. People have been mining the coin for months or years, and they have probably seen some tremendous gains, especially if they have a decent-sized operation. OK, lets get back to the question: Is it worth it to start mining? If you are just hearing about Ethereum and interested in maybe jumping onboard, this can be a very difficult question and the answer depends on a lot of factors. Well, hopefully, this article will help you get an idea of whether it is good to mine Ethereum. In elementary terms, Ethereum is an open software platform based on the blockchain technology that enables developers to build and deploy decentralized applications. I remember a friend once came up to me and asked, Is bitcoin and Ethereumsimilar? Well, sort of, but not really. Like bitcoin, Ethereum is a distributed public blockchain network. There are, of course, some significant technical differences, but the most important is that they differ substantially in purpose and capability. Bitcoin offers one application a peer-to-peer electronic cash system that enables bitcoin payments. The Ethereum blockchain can support many different types of decentralized applications. Wait, if it is a n Continue reading >>
It Is No Longer Worth It To Build An Ethereum Mining Rig
It Is No Longer Worth It To Build An Ethereum Mining Rig Building an Ethereum mining rig hasnt been worth it for months, and soon they will be completely obsolete. Goodnight, sweet prince. Image: Daniel Oberhaus/Motherboard Back in May I wrote a guide explaining how to build an Ethereum mining rig , a special type of computer that forms the backbone of the Ethereum network and earns ether, the digital currency native to the network, for its owner. Shortly thereafter, Motherboard also made a video documenting this process . Since then, Ive received countless emails from readers inquiring about my mining rig. Ive received three such emails this week. The most common question voiced by these readers is whether or not it is still worth it to build a mining rig. The answer to this question is no. Building an Ethereum mining rig hasnt been worth it for months and a few months from now, mining ether will be completely obsolete. Read More: An Idiot's Guide to Building an Ethereum Mining Rig Arguably, building an Ethereum mining rig wasnt even worth it when I built my machine in May, and many readers let me know this when the article and video first came out. This is somewhat true, but there is a necessary caveat here. Mining ether also wasnt worth it for about the first year and a half of the cryptocurrencys existence. The price of ether hovered around $10 from 2015 until early 2017, when it saw a spike to $25. This was important because it meant the value of the ether being mined was higher than the cost of the electricity that was needed to mine it. In other words, until that point small scale mines were operating at a loss in the belief that the tokens they were mining would someday be worth a lot more money. In hindsight, these early miners were rightthe price of ether has Continue reading >>
What's Better Ethereum Mining Or Buy And Hold?
2 - Just buy $1,000 worth of ethereum and hold it as it increases. Now I'm leaning toward mining but before I do I want to get some opinions. Another benefit I see in mining at Genesis is that you can switch your Mining Allocation to another currency like Steem even. So if for some reason ethereum tanks you can switch it. Hmmm. As a test I did already got a Genesis account at just 5 MH/s for $150 3 days ago and so far got 2 pending payouts for a total of 0.00674646 ETH which is in line with the calculator . If you want to try Genesis Mining yourself you can use this code for a 3% discount: vbkHL2 Another option that I found is with HashFlare which offers 12 month contracts for a lower price which might make more sense since the difficulty level increases over time anyways. Use this link for 10% off your first order as a first time customer. Example use this calculator with 30MH/s and select 12 months for 2.39 ETH then select 24 months for 3.07 ETH. So in the second 12 months you only earn an extra .68 ETH. These are certainly exciting times we live in. Investing is crypto is already a risky business. Investing in mining is exponentiating that risk. IMHO, plain stupid. The major factor is, that the difficulty increases dramatically. Sometimes exponential. Most mining profitability calculators do not account for that. They give you the wrong picture, so you think mining is a good business (it is, for the one who is selling it to you). See this calculator for example: With accounting for difficulty increase the absolute maximum you can mine with 30 MH/s is around 3 ETH. But you have to run it for 2 full years (extend it to 24 months under the image) - and after that the contract will most likely be unprofitable to maintain. So, do you want to wait 2 years for your 3 ETH, Continue reading >>
We Bought An Ethereum Mining Rig With The Hope Of Retiring Early
We bought an Ethereum mining rig with the hope of retiring early The MyBroadband offices first encounter with Ethereum happened something like this. MyBroadbandjournalist Jamie McKane walked in one April morning, sat down, and said: Im going to buy this cryptocurrency Ethereum. We had no idea what he was talking about, but it sounded cool, so we said we were in. After checking out various sites under instruction from Jamie, a few of us registered with Luno for Bitcoin, Poloniex for trading, and MyEtherWallet for Ether storage. What happened in the weeks that followed our Ethereum purchase got us all on the cryptocurrency hype train with Ethereum and Bitcoin reaching all-time highs. As we had not invested our entire life savings in Ethereum, we decided to pool somemoney together and purchasea mining rig instead of buying more of the digital currency. While profit projections and calculations comparing investment vs the purchasing of a rig were on the to-do list, we ended up buying it because: Someone said something about the means of production and quoted The Wolf of Wall Street. It would be cool to have a mining rig we are all tech nerds at heart. If the mining failed, we could build sweet gaming PCs with the graphics cards. We ended up buying a rig from Bitmart , which features six AMD Radeon RX 580 4GB GPUs. The rig also features a 60GB SSD, 4GB of RAM, a motherboard with enough PCIe slots for thecards attached via risers and a basic Intel processor. The rig came with Windows 10 and Claymore. Our set-up sees us connecting to an Ethermine.org mining pool, which pays us 1 Ethereum at a time to our wallet when earned. Our rigs reported hashrate to the mining pool is around 170MH/s, while our average effective rate sits at around the 160MH/s mark. Weve had the rig a week Continue reading >>
Mining Or Buy Ether?
I need ether to make transactions. Actually I'm working on the testnet Ropsten network then it's easy to get ether with a miner. But if I mine blocks on the main network this will take more than one year to get just one ether. And I see we can buy ether. I want to know if it's worth it to buy ether ? What is the best way to get some ether to use ethereum in production ? Mining on a standard computer ceased to be feasible long ago. Another option is hiring a mining rig, I do not have experience in doing that, but I suspect it will be somewhere below or on the border of profitability, with the added cost of needing constant attention. The only way for a normal mortal to get Ether right now is to buy it, most likely at an exchange. EDIT: I did not mention pool mining, which is just dividing the mining among more participants, so that you get paid almost immediately and do not have to wait until you mine a block. Most mining nowadays is done via a pool. Note that you usually pay a small fee to the pool owner. Continue reading >>
Stop Building New Rigs! It Is Not Worth It! Please Read Before You Start Mining!
My English knowledge is average so please sorry for grammatical mistakes. Thank you Proof that if you buy RIG just to mine ETH is not a good idea: There are a lot of threads where people are saying that the moment to start mining is lost...But people are still begin mining! First of all you do not understand what means difficulty and what means return of investment. I begin mining one year ago... And it was already to late for me to get in. Why? Because the amount of Ether produced in all this time by me is lower, than if with the same amount of money I invested in production, I would buy directly Ether's! Yes! And I started 1 year ago. Difficulty grew up very fast and amount produced every day become lower and lower! I don't tell you problems with heat in the summer and freezing Rig's ... So if I would buy Ethers at 10$ (at this price I can buy exactly amount of Ether I produced in one Year) one year ago I would sell now at 4 times profit! But there was moments when Ether fall down to 6-7$ (At this price I would buy much more Ethers than I produced in 1 year) which I would sell at 7-8 times profit! Or I would sell now just an amount to recover investment and wait for Ether to go to the moon! Big Idea is that now is the same. Just make a calculation. With a computer with 5 rx480's you will produce about 0.27 per day, that's 8 Ether's/month (if your computer will work 100% of time). But this you will produce in first month, in next months amount will be lower and lower! In just couple of months amount of Ether produced can be 4 Ether's/month. For Example as evidence of that in November-December 2016 you would produce 150-200 % more than know.... You can check the difficulty graph for evidence... Also there is POS coming...which can happen this year! So you will never re Continue reading >>
Is Bitcoin Too Expensive To Buy ? Mine Them Instead
Bitcoins with minimal investments and faster ROI and what risks am Itaking? Bitcoin prices has been sky rocketing and all the cryptocurrencies are following the lead. There are 2 ways to get bitcoins We buy and trade the bitcoin in the exchange like Coinbase , Gemini etc What is Bitcoin mining? you can read here . I took the mining approach for getting bitcoins and I will tell you my story. I was showing lot of interest in mining bitcoins. I was trying to seek the machine to mine bitcoins. The most powerful machine on market today that can mine bitcoin is Antminer s9 with gives hashrate from 11.5TH/s 14TH/s with the power consumption of 1127W 1372W. This machine (Original Cost: $1415) is in high demand and almost sold out from manufacturer, every other shop you can possibly find and where ever it still available its madly priced ( $4800 $6000) and the prices of these machines are going up as bitcoin prices are going up. Approximately it can make 0.81.1 BTC / Year ($16K $18K) which is again based on the current difficulty of SHA 256 which is increasing as more coins are being mined. The cons of doing this you need atleast $6000 ready to start this kind of investment and you have to live with extreme noise and heat this machine is going to generate. I am a small investor and I dont want to invest huge dollars and more importantly bear with the noise/heat and loose my sleep over it, So what to do now? I looked upon is cloud mining (which is something like AWS analogy to regular data center) which means some body else will mine for you and you buy the hash rate you wish to buy, which translates I dont have to invest a whole lot and more importantly I dont have to deal with the noise/heat. Hashflare is the one of the cloud miners who sell their has rate as a year contract s Continue reading >>
Mining - Has It Been More Profitable To Mine Or Buy Ethereum? - Ethereum Stack Exchange
Has it been more profitable to mine or buy Ethereum? On any given day, it has almost always been the case that simply buying Ethereum tokens (ETH) would have been more profitable than mining it. For example, even if you started on day 1 (July 29, 2015) at home, you'd have half as many ethers as someone who bought on an exchange -- or somewhat less than someone who bought on an exchange any time up to January 21st, 2016 (give or take). A miner starting on the release day of the RX 480 (June 29, 2016), paying MSRP, would have as many ethers as someone buying ethers on the open market any time up to January 23, 2017. Conditions required for mining to be more profitable are that difficulty remains low for a prolonged period of time before a rapid rise in price since rising prices can be expected to result in rising difficulty (but the opposite is not true -- if the price increases by 10% and the collective hash rate increases by more than 10% to take advantage of the price increase, this will not drag up the price). Your "investment" in hardware is depreciating in the meantime and your capital is tied up. Alternately, miners come out ahead if the price of Ethereum plunges, in which case the miners can still sell off/use physical assets. I wrote a program to use historical data to determine whether one would have more ETH buy simply buying and holding ethers or by mining them. There are several caveats in the calculations (see program code), but regardless of how you calculate it, it's still true that mining has rarely resulted in better yields than buying ether. The program also has the ability to extrapolate (it defaults to doing no extrapolation). Past performance is not indicative of future returns and this answer, nor the program, constitute investment advice. These ar Continue reading >>
Mining Vs Buying Bitcoins Where Will $10k Get You ?
Last updated on October 13th, 2017 at 09:37 am As Bitcoins price continues to rise recently weve been getting a lot of emails from people who are asking if its better to mine Bitcoins or to buy them. Last year, when Bitcoin was initially covered due to the crisis in Cyprus, many people took up the hobby of home mining. At thattime (April 2013) it was still possible to generate a nice amount of Bitcoins through mining at home with your CPU or even a graphics card. But since then mining has become much more difficult and today its almost impossible to mine at home without investing a substantial amount of money. The question remains if you had $10K to invest in Bitcoins today, would it be better to just buy Bitcoins with this money or use it to get mining equipment and mine them. So how much Bitcoins will $10K get you through exchanges? Well if youre going to buy Bitcoins thats an easy answer. At todays exchange rate you can get somewhere around 25BTC (I use CoinLlama to calculate the best possible price). So now the question remains can we beat this in the long run by mining. Of course there is no simple answer to this since the question to is Bitcoin mining profitable depends on many variables such as electricity cost, the increase in mining difficulty etc. But for the purpose of this post I will assume that I live in Louisiana USA (this is the lowest cost per Kilowatt you can find in the US today). Finding a good Bitcoin miner is quite the hassle Since most of my money will be spent on my mining rig its important to choose wisely. The problem with many mining companies is that their products are out of stock most of the time and they create pre-orders, here is an example formKnCMiner. I dont like this method since its just calling for trouble (e.g. Butterfly labs ).Af Continue reading >>
Best Ethereum Mining Hardware (2018 Updated)
Last updated on February 26th, 2018 at 04:04 pm Ethereum (ETH) is a popular choice for graphics card (GPU) miners. In 2018, Ethereum smashed its long-term $400 ceiling, and reached more than $1,000. Ethereums Ethash algorithm is one of many algorithms designed for optimal mining on GPUs. Generally speaking, a GPU is good for mining all GPU-mineable cryptocurrency (including Ethereum Classic , Monero , Zcash , and Vertcoin). This situation gives GPU miners enviable flexibility, in order to be able to switch between over 40 coins that are based on their current profitability. If youre new to mining Ethereum , there are 4 important things you should know: Ethereum intends to switch to a Proof of Stake scheme called Casper. Although this switch has been delayed, its reasonable to expect that it will occur in late 2018. Ethereum mining will no longer be possible after that, unless a hybrid Proof of Work/Proof of Stake model is implemented. If so, rewards to miners will be significantly reduced, with perhaps half of all new coin rewards going to holders instead. Ethereum mining currently requires a GPU with at least 3 gigabytes of Video RAM (VRAM). This VRAM requirement is expected to grow to 4 gigs in 2018. The Ethereum Directed Acyclic Graph (DAG) file is stored in VRAM by miners. The DAG grows in size by remaining proportionate to the mining difficulty. About once every epoch (or 30,000 Ethereum blocks), a new DAG is generated, which must be downloaded in order to continue mining. You can view the current epoch and other Ethereum network stats here . (At the time of this writing, the epoch was 162.) Note that the performance of older cards will degrade with each new epoch. Up to a point, more VRAM will also improve performance. The present difference between a 4- and 8-gi Continue reading >>
To Mine Or Buy Ethereum/zcash/monero In 2018
To Mine or Buy Ethereum/Zcash/Monero in 2018 Share on Facebook Share Share on Twitter Tweet Share Share Since the beginning of the second half of 2017, I call myself a proud crypto investor- currently investing in the 4 major cryptocurrencies - bitcoin, ethreum, litecoin and ripple. Starting July 2017,using dollar cost averaging I keep buying crypto coins once in the month. So far, the total crypto portfolio shows an awesome 132.98% year to date value growth. A couple of days ago I decided to give it a try and set up a 12 GPU ethreuem mining rig , for that I headed to Amazon.com and ordered goodies (motherboard, graphics card, risers, processor and so on) Now, in total, I spent $960 for a bare minimum, just one GPU, which I'm planning to extend during 2018, by adding a new card once in the month. I decided to compare/forecast/predict - should I rather had invested $960 directly purchasing ethereum, zcash or monero, instead of building a mining rig. From money invested in mining rig ($960), I could buy 2.03ETH. By knowing approximate hashingpower (22.5MH/s) and electric costs ($0.08) I calculated how much I could earn with just 1 GPUin one year. The result is not at all impressive - just 1.23 ETH. Apparently, if you are deciding to invest in mining rig - one GPUmight be too short to get back your investment in a foreseen future. As I'm planning to run a full 12 GPUEthreum mining rig, the cost for it would be, if all parts bought at once - $3,880.93. Let's see how much ETH a 12 GPUmining rig could theoretically produce in a year: 14.73 ETH - Now, that already seems as a nice result. If convertedback to the USD using today's ETH pricing (which is wrong, as we have no clue what will be the price for ETH at the end of 2018) we could get $6959.33, or profit at $3,079. Nice. Continue reading >>