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 >>
Is It Better To Mine Ethereum With A New Rig Or To Just Buy Ether With The Rig Money?
It is a capital investment decision. For, say $1K, you can build a rig with e.g. 3 RX470/580 cards, which would pay itself off in about 3 months at the current price $219/ETH. After that, the rig would just continue generating ether for as long as you run it (or until they switch to a different pos algorithm). The main risk you would have is of a possible sudden crash of cryptocurrencies in the next 3 moths, which could wipe out your investment. BTW, the cards will still have value for gamers as your rig will be worth 7080% of the original price even then. For instance, people who bought bunch of RX 470s months back, are now selling them for 50% or more than the original price, because the new generation RX 5x0 cards are more power hungry. If you buy ether now, you will have it right away and will ride the price up and down. So it boils down to accepting the risk until your investment pays off, after which it continues producing. At this point, it would be a better investment to buy Ether with that money. Like most any piece of computer hardware, when you buy a mining rig, it is a liability rather than an investment. As soon as you boot it up, the setup is worth less than what you bought it for. This is similar to the idea that as soon as you drive your new car off the lot, it's resellable value typically plummets. When you buy Ether, sure the value of that Ether could go down in the short term, but most probably, it will go up in the long run. Ethereum is quickly approaching the ice age of mining. This is an event that is coded into the protocol so that by the time the Proof of Stake algorithms and systems are expected to be finalized/deployed (around mid 2018 IIRC), hardware mining will be at a standstill and will be next to useless. This strategy was planned in adva 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 >>
How To Mine Ethereum With Genesis Mining
Ethereum is the first 'world computer', existing as an open source computing platform capable of executing scripts and 'smart contracts' using its own Blockchain. Ethereum is powered by the cryptocurrency Ether... the more you have, the more computing power you control. Ether (cryptocurrency code ETH) is listed on most Bitcoin Exchanges, so you can buy some if you wish by way of an investment. Alternatively, you can create your own Ether through 'mining'. In layman's terms, mining Ethereum involves using computer hardware to run 'proof of work' algorithms. Any machine participating in the network can mine Ethereum, although the amount of revenue in Ether this generates entirely depends on your mining output or 'hashrate'. (See a detailed explanation of this process here ). DIY power users may prefer to buy specialist hardware and start mining themselves . You can also rent hash power from data centres to mine Ether on your behalf. In this guide you'll learn how to purchase a two-year Ether mining contract from Genesis Mining, which owns Engima , the world's largest Ethereum mine. While there's no guarantee you'll make a positive return from this investment as with any investment this is one of the quickest and easiest ways to get started with mining today. If you don't already have a wallet to store your mined Ether, visit . Under Create a New Wallet fill in the Enter a Password field with a strong password. Click Create New Wallet. Next click on Download Keystore File and save this in a safe place on your computer. Click on I Understand to load the wallet itself. Click Print Paper Wallet to open it in a new page. Make a hard copy if you can. Take note of your address, which you can use to receive payments, for example: 0x1069E0D8dDb279bEB5b1f38c3654118215236a8A. In yo Continue reading >>
Should You Invest In Hashflare Ethereum Cloud Mining Contract Or Build Your Own Gpu Mining Rig
Should You Invest in Hashflare Ethereum Cloud Mining Contract or Build Your Own GPU Mining Rig Share on Facebook Share Share on Twitter Tweet Share Share The idea and inspiration for this article come out since after about a month ago I started to invest both in cloud mining and building my very own GPU mining rig . I decided to compare - what's more profitable - doing all by yourself or just throwing money into cloud mining contracts. Make sure to read out my previousarticle on similartopic: To Mine or Buy Ethereum/Zcash/Monero in 2018 For a prelude, back in December 2017, I decided to build up to 12 GPU mining rig , using kind of dollar cost averaging - installing a new graphics card once in a month. Now, about 30 days later I have a 3 graphics card mining rig, and I'm dual mining Ether and Siacoin, These 3 cards combined gives me about 41 MH/s hashing power - which translates into some $5-$6 per day (not counting in fee for electricity) With Rising Ethereum Price I'm making $5.22 daily by Mining Cryptos - And I Definitely Want MORE! Shortly before the Christmas time I decided to experiment with cloud mining contracts and opted for Bitcoin Cloud Mining contract from Hashflare.io - again the same approach - dollar cost averaging, and investing small once per month in additional hashing power. HashFlare.io (Affiliate link here - if you will click, register and decide to invest, I might earn 10% commissionfrom that) Now, for the ease of this experiment - let's compare Ethereum mining - DIY and Cloud contract from Hashflare.io. Also, I will assume you already have basic components - like motherboard, pc risers, processor and so on - and the one and only investment you are concerned is - adding anew graphics card. A couple of days ago I bought ZOTAC GeForce 1050TI OC 4GB Continue reading >>
How To Choose A Bitcoin Or Ethereum Mining Contract!
How to choose a Bitcoin or Ethereum Mining contract! Choosing a cloud mining contract can be difficult - knowing how to price it or whether its a good deal and even if its legit - there are pitfalls left right and center. But here at CryptoCompare we've tried to make the process as seamless and easy as possible by creating a set of metrics to give you an idea of exactly how an ethereum , bitcoin or litecoin mining contract works. You can buy a cloud mining contract with Hashflare or Genesis Mining . Compare Bitcoin, Ethereum and Litecoin Cloud Mining Contracts We try to make it as easy as possible for you to compare bitcoin, Ethereum and litecoin mining contracts by ranking them and using live data to give you all the metrics you need to make a decision. If we don't think the contract provider is legit - we say so - and if the stats say the contract makes no sense - we let you know that it isn't profitable. You can rank and filter by companies and return by day or reviews in our mining contract list. You can filter by what you want to mine or how long the contract will last. Some contracts aren't even profitable with present market rates. We calculate the profitability by seeing how many days the contract takes to pay back the money invested. We do this by working out the daily return given the present hashrate of your contract and the network and then subtracting the appropriate fee if necessary. The figures we use can be found at the bottom of the page as shown in the picture below. We also give a wealth of other information - such as the expected return per year - the 174% above means the contract will pay you back your initial investment of $899 dollars and give you a return of 74% on top. We also show you the cost per MH/s, the return per week, month and year - al 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 >>
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 >>
Ethereum Mining Vs Buying
I have a complete newbie question. I have $1000 to start and I'm looking at these 2 options to purchase Ethereum. 1. Just buy Ethereum at the open market. Price around $300 2. Buying a cloud mining contract from Genesis Mining buying eth is more convenient and faster than mining if you got 1k usd to invest i'd advice buying soon cuz eth is on a drop for now "because people are dumping it to buy btc to benefit from the hard fork .. do your research on that" anyway ETH will rise in about a month to reach a good point *do some searches before investing hard earned money into crypto currencies and know all the risks involved** Definitely just go buy some Eth. Don't invest in cloud mining contracts. While it is certainly possible to potentially profit from them, that likelihood is incredibly low. Cloud mining contracts are buying under the assumption that profitability will continue to rise while difficult will continue to stagnate. In reality, profitability tends to decline over time as difficult continues to rise over time. Quote from: RentGPU on November 06, 2017, 06:55:40 PM If you take 2017 as an example, if you bought any eth or zec ....etc , you would make much more profit than mining , just buy and hold . I think the same also. Based from what I was reading regarding cloud mining contracts, whatever they offer is really not true. That you really can't achieve your ROI for a specified time. So buying eth is more than plausible action, at least you are holding your own money and not the other third party entity that you won't know what will happen to your investment. buying eth is more convenient and faster than mining if you got 1k usd to invest i'd advice buying soon cuz eth is on a drop for now "because people are dumping it to buy btc to benefit from the hard fork 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 >>
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 >>
Mining Ethereum Guide 2018 | Is It Possible To Get Rich By Mining?
In cryptocurrency, mining refers to the use of computer hardware and special software applications to find blocks on a given blockchain or platform. To put it simply, Ethereum mining refers to the computational process of finding ether. Ether is required in the implementation of smart contracts that are useful in verifying, approving and securing transactions of various applications that run on the Ethereum blockchain. To engage in Ethereum mining, you need the following: With the above in place, you can become a miner and get rewarded with ether every time you hit a hash. Let us look at the various ways of mining Ethereum. There are two ways of mining Ethereum: GPU Mining and Cloud Mining. For you to engage in Ethereum mining, you need to have specialized hardware commonly called GPU, short for (graphics processing unit) GPUs are preferred for Ethereum mining because they have more hashing power than the CPUs that were initially designed to do the mining. So, mining Ethereum requires you to have the best GPU and a rig. With this software and hardware in place, you can go ahead and try solo mining. GPU Mining is the most effective and profitable method of mining since it is 200 times faster than any other existing mining method. However, it needs a lot of electricity to run the hardware and software. It also requires high costs of maintenance when it comes to the hardware. Firstly, you need to have the right hardware. Any computer with a graphics card (or multiple graphics cards), of four gigabytes (or more) of video RAM, will work. Then download a miner. It is recommended that we join a pool since it enables us to get more transactions going through our computer. An excellent example of a mining pool is Claymores Miner. Next, create an Ethereum wallet in which Ethereu Continue reading >>
Buying Ether Vs Ethereum Cloud Mining: What Is More Profitable For Long Term? (english/german)
in cryptocurrency 2 years ago (edited) Hi Steemians, a few days ago I had a talk with a friend about Ethereum mining. Last year I invested 50 in Ethereum Cloud Mining for him for example and now he has 2.3 Ether worth over 550 $. If I had bought Ether directly for 50 last year, it would be more than 5 ETH worth over 1000 today. So the question is: What is more profitable in 2017? Buying Ether, or Ethereum Cloud Mining? I was sure Cloud-Mining is more profitable, because of the high Ethereum price. If I would buy 10 Ether today, it would cost me about 2300 $. I can get the same amount of Ether much cheaper with Cloud-Mining. With around 37 MH/s Ethereum Mining Power, I will get over 10.4 Ether after 1 year and it only costs about 1090 at Genesis Mining and it is mining 2 years. So after 2 years you will get about 20 Ether back for only 1090 instead of 10 Ether for 2300 $ if you buy it today directly. Note: Of course the increasing mining difficulty is not included in the calculation, so it will be a little bit less than 20 Ether after 2 years Ether Cloud-Mining, but it is still cheaper than buying (in the moment). Here you can see the mining difficulty chart of Ethereum and unfortunately it is raising strong, what could make buying Ether more profitable than cloud mining soon: My conclusion: If you want to invest in Ethereum, you can buy cloud-mining contracts for Ether at Genesis Mining for 2 years. With this code you will get a 3% discount at Genesis Mining: I3QXtG But keep in mind, that the mining difficulty is raising very much in the last time and if this goes on like this, buying Ether is better than cloud mining. vor ein paar Tagen hatte ich ein Gesprch mit einem Freund ber Ethereum Mining. Letztes Jahr habe ich zum Beispiel fr ihn 50 in Ethereum Cloud Mining inv 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 >>
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 >>