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 >>
Beginner's Guide To Ethereum Casper Hardfork: What You Need To Know
The Casper updates mission is straightforward, then: to shift ether from being a PoW coin to a Proof-of-Stake (PoS) coin . As opposed to the PoW consensus protocol, the PoS protocol achieves consensus through stakerssometimes referred to as minters, toowho stake their coins by locking them down in specialized wallets . With these stakers at work, mining will become redundant, meaning the Ethereum network post-Casper will rely on stakers and staking pools instead of miners for its operability. And, like miners, stakers will be rewarded for their service to the network. Minters will receive an annual dividend of ether (collected from network fees), so staking would be a lucrative endeavor for those with enough coins. Naturally, then, the more ETH you stake, the larger your annual dividends will be. For now, Ethereums developers havent arrived at a hard number for the amount of ETH that will be required to stake. What they have confirmed, though, is that the number will likely start out higher before gradually being brought considerably lower. For instance, Ethereum founder Vitalik Buterin has recently thrown around a guesstimate of needing approximately 1,000 ETH to be one of the networks inaugural stakers. He said that number could be dropped down to as low as 10 ETH over time. Whatever the number ends up being, users will still be able to band together and create staking pools, just like there are robust mining pools in the Bitcoin and Ethereum communities today. Youll simply pitch your desired amount of ether in, lock in down with your peers, and rake in the dividends together (to be shared proportionally, of course). Well, the Casper update is certainly a team effort, but its inarguable that top Ethereum researcher Vlad Zamfir has been at the vanguard of the updates Continue reading >>
The Real Cost Of Mining Ethereum
Image Credit: Vitaliy Karimov/Shutterstock Just how profitable is it to mine Ethereum? To properly answer this question, lets start at the beginning: Lets construct a hypothetical mining rig, plug in some reasonable numbers, and come up with a pragmatic analysis of how much you can earn through Ethereum mining. Lets also hold the price of Ethereum static. By removing any profitability from the appreciation of Ethereum from the equation, well be able to correlate the actual rates of return exclusively with hardware, electricity, and any other costs associated with running a mining rig. Our assumption set uses numbers from January of 2018 that you can see below (we have done our best to use reasonable and middle-ground numbers): As you can see here, our hypothetical mining rig is more efficient and profitable than some of the best mining equipment on the market right now. We are assuming four GPUs that mine 40 MH/s each. The hardware specs are four GPUs, plus a processor, a motherboard, and a power supply rated at 1,000 Watts of electricity. The cost of this rig would be approximately $3,000. A reasonable cost of power is approximately 10 cents per kwh. This is below the national average for retail power rates in the U.S. To run a mining rig you will likely pay at least 10 cents per 1,000 watts run for each hour. This means one full day of mining comes with an electricity cost of $2.40. We will also use the block reward and block difficulty from January of 2018 as our base point. And we assume mining with a single rig is only reasonable when working with a mining pool. Some mining pools take up to 10 percent of your earnings, but some of the best only take 1 percent. For that reason, weve pick a modest 1.5 percent. Taking several points across Etherescans historical char Continue reading >>
Anyone Buying Hardware To Mine Ethereum Is Going To Lose
Anyone buying hardware to mine Ethereum is going to lose Theres a huge cryptocurrency mining boom taking place right now, with global GPU shortages for both AMD and NVIDIA, as well as a general shortage on high-end PSUs that drive over 1000W. This all began to spiral out of control starting in late May, and into the first week of June when Ethereum really exploded onto the scene. It was being mined the hell out of behind the scenes, but it was in the middle of June when it felt like it was absolutely everywhere. GPU shortages across the world, with both reactional effects to AMD and NVIDIA as well as eBay sellers, retailers, wholesalers, and even the second-hand market. Older graphics cards from AMD began doubling or tripling in price in the second-hand market, with the Radeon R9 295X2 selling for nearly $1000. This drove people to buy Radeon R9 290/390 series cards, on top of people stripping shelves bare of the Polaris-based Radeon RX 470, RX 480, RX 570, and RX 580. Both variants were depleted with 4GB and 8GB models selling out, and then NVIDIA felt the effects with GTX 1060s becoming super popular overnight, selling out just as quickly as retailers began cashing in on the Ethereum mining boom. It wasnt long until the higher-end GTX 1070s began leaping in price, before also flying off shelves. This trickle effect was hitting other markets that werent being talked about, including high-end PSUs. I had a near impossible time of finding high-end PSUs, with 1000W+ units selling out all over the place. There were a few high-end 850W units left, but the numbers were thinning. On eBay, there were plenty of mining-oriented products that began enjoying the Ethereum rush, including PCIe x1 to x16 risers, steel frames for multi-GPU rigs, and more. Now that there are virtually Continue reading >>
Bitcoins Top Rival Is Up 90% And Ready To Ditch Mining
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Bitcoins Top Rival Is Up 90% and Ready to Ditch Mining Ethereums developers set course for mining-free model Blockchain seen as potential backbone for business, finance Marco Streng s computer servers are what make Thousands strong, they whir day and night, solving the complex math riddles that are essential to verifying transactions on the hottest new platform in the world of cryptocurrencies and blockchains. Without these machines, or those deployed by Strengs biggest rivals, there would be no Ethereum. But mining, as the practice is called, is costly and inefficient and, frankly, a bit weird. And Ethereums developers have always envisioned a time in which the cumbersome process of brute-force computing would be replaced by a system that relies simply on collateral. That time, some four years after the network was first proposed, is now. The developers want to put this proof-of-stake model, called Casper, into place by year-end. The stakes are high. If Ethereum is going to take advantage of the potential that companies like JPMorgan, Microsoft and IBM see in its underlying transaction technology, the blockchain, as the potential backbone that could reshape modern business and finance, it needs to gain wide adoption to become something of a de facto standard. Wit Continue reading >>
Heres Why You Cant Buy A High-end Graphics Card At Best Buy
Sign up or login to join the discussions! Heres why you cant buy a high-end graphics card at Best Buy Cryptocurrency cant crash soon enough, one gamer fumes. Enlarge / Philadelphia miner Matthew Freilich shared this picture of his mining rig, which contains eight Nvidia GTX 1070 graphics cards. The market for high-end graphics cards used to work like the market for almost any other piece of computer gear. You'd go to your local electronics store, pick one up off the shelf, and pay an amount right around the manufacturer's suggested retail price. But the rise of cryptocurrency mining has created an unprecedented global shortage of graphics cards. If you go to your local retailer, you're likely to find bare shelves where the beefier cards used to be. Instead of trading at a discount, used cards routinely sell for well above MSRP on sites like eBay and Craigslist. And it's driving PC gamerswho used to be the primary market for these cardscrazy. "Cryptocurrency can't crash soon enough," one gamer wrote on the PCGaming subreddit a few days ago. Gamers thinking about building a new gaming machine are being forced to put those plans on hold until the market settles down. Others, who bought high-end graphics cards a few months ago, are wondering if they should sell at a big profit. Jared Walton of PC Gamer sums up the situation: "It's a terrible time to buy a graphics card." The graphics card shortage is happening because high-end graphics cards are the best way to mine Ethereum and other non-bitcoin cryptocurrencies. With the price of these cryptocurrencies rising to unprecedented heights in recent weeks, a powerful graphics card can generate several dollars per day in cryptocurrency. And so a growing community of hobbyist miners has been snapping every graphics card it can g Continue reading >>
Ethereum 'difficulty Bomb' May Not Happen For Another Year Or Two - Bitsonline
Ethereum Difficulty Bomb May Not Happen for Another Year or Two There will be another delay for Ethereum minings difficulty bomb and switch to a proof-of-stake (POS) network, developers say. The decision could affect miners economic decisions in the near future, such as how much to invest in equipment and how much hashing power to devote to ETH. Also read: Shanghai Authorities Halt Blockchain Event, but No Fears of Wider Crackdown Increased Difficulty Means Leaner Times for ETH Miners There will likely be a squeeze on Ethereum blocks and block rewards from now until a new update arrives in late September. Reports from an Ethereum developers conference call last week said the long-proposed POS implementation, called Casper, will still not be ready soon. Originally planned for late 2017, the roadmap could push Casper back to the end of 2018 or later. Moving to POS has long been part of Ethereums roadmap, though the exact timing is unknown. It would fundamentally change the network, removing all ETH mining activity as it currently exists. Ethereum currently mines using proof-of-work (POW) like Bitcoin, where powerful machines race to solve a complex math problem and receive block rewards. Ethereum blocks are mined roughly every 12 seconds (depending on difficulty) and the block reward is 5 ETH. The rapid rise in ETH value from around $8 USD at the start of 2017 to around $400 in June has seen a rush to mine the token . It has also created a worldwide shortage of GPU cards. Under a POS model, Ethereum would require no GPUs at all. The difficulty bomb is code inserted into Ethereum that increases POW mining difficulty exponentially in preparation for POS introduction. The period where it gets too difficult to mine at all is called the Ice Age and its already beginning. The Continue reading >>
When Will Ethereum Mining End?
In August of this year (2017), Vitalik Buterin, creator of Ethereum , released the implementation guide for the first version of Casper. As a hybrid proof-of-stake (PoS)/proof-of-work (PoW) algorithm, Casper v1 is going to decrease (and eventually end) the profitability for Ethereum miners . The release date is estimated to be sometime in 2018 as part of the Constantinople hard fork and theres a lot to learn before this happens: Casper is a PoS algorithm thats projected to be released on the Ethereum network sometime in 2018. Beginning as a hybrid with the current PoW algorithm, the first version of Casper will only use a PoS consensus to validate every 100th block, called checkpoints. Once a checkpoint is validated, theres no way to go back and use a chain without it. Even if 99% of miners support a chain that doesnt include a checkpoint block, all clients in the network will still continue to use the one with the checkpoints. This removes a lot of the power that miners currently have. The Ethereum community hypothesizes that the switch to PoS will help with the scaling issues that the network is currently facing. The algorithm should enable new blocks to be created more quickly while allowing the network to scale more efficiently through sharding. Sharding is a horizontal partitioning of a large database into smaller and more easily managed parts. Beyond that, PoS algorithms also use less energy to run the network, reduce centralization, and make 51% attacks more difficult. With the upcoming hard fork, there could potentially be three forks of Ethereum: And, if youre a miner, you may be thinking, No big deal, Ill just continue to mine and give support to the Ethereum PoW fork. The Ethereum developers have stated that theyll be releasing what they call the difficulty Continue reading >>
Ethereums Metropolis Hard Fork Will Activate At The End Of September
Ethereums Metropolis Hard Fork Will Activate at the End of September Ethereums Metropolis Hard Fork Will Activate at the End of September It looks like we have some important updates regarding the Ethereum Metropolis hard fork. It was previously unclear when this upgradewould go into effect, but a tentative date has now been provided by the developers. According to the information we received, Metropolis will go into effect at the end of next monthand will introduce some interesting changes. The strong focus on anonymity will certainly make things interesting. Other changes detailedbelow should be taken into account as well. Metropolis is Coming to the Ethereum Blockchain Ethereum users have looked forward to the Metropolis hard fork for some time now. This hard fork was announced several months ago, but there was never an official release date. Coding these changes could very well haveresulted in issues which needed to be worked out, further pushing back an official timeline. The proposed changes made to Ethereum are quite thorough and embody the result of weeks of hard work on the part ofvarious coders. One could argue Ethereum will never be the same after the Metropolis hard fork, whichdoes not have to be a bad thing. The most major change coming to Ethereum is the implementation of zk-SNARKS. For anyone who has kept tabs on privacy and anonymity features in the cryptographic industry, zk-SNARKS will sound pretty familiar. The technology has been employedby various alternative currencies in the past, although it does not provide anonymity all by itself. Instead, zk-SNARKS will be incorporatedin the Metropolis hard fork, whichwill notmake Ethereum an anonymous currency right away. Though it will pave the way for anonymous transactions in the future, it remains unclea Continue reading >>
Should You Sell Your Ethereum Mining Rig Asap?
Download Wallet! Get the latest version of Ethereum Mist Wallet Here! Should You Sell Your Ethereum Mining Rig ASAP? Ciprian V. | July 23, 2017 | News | 17 Comments Everybody knows that the cryptocurrency market is volatile and unstable. Some days ago, the price of ETH reached a critical low mark. It went from 400 USD/ETH to roughly 200 USD/ETH. According to experts, this trend will continue and while this does not mean the end of ETH, there is little chance for it to get back in value in the next weeks. Many miners posted their mining GPUs on eBay and other online shops in attempt to get back their money. It might seem a wise decision since as for today the price of good GPUs is still above the clouds. So my question is: should we do the same? In this article, I will try to analyze the pros and the cons of selling your ETH mining rig . In order to do that, we will first need to take a look at what is really going on with ETH. To receive the latest updates follow me on social media! Most people that are new to cryptocurrencies are talking about a certain bubble that was formed over the years. According to them, the unbelievable rise of ETH price, which went from $1 to $400 in only 2 years , is enough proof that the coin is not a trustworthy investment. They usually believe that this steep uptrend was caused merely by the fact that cryptocurrencies are the new black. According to them, once the freshness of the coin wears off, its value will decline. However, according to Joseph Young from Coin Telegraph, ETH remains a good investment despite the rollback. He believes that the fall was mostly due to the number of successful ICOs which achieved their financing goals,  but since the completion of their ICO campaigns, none of the large-scale ICOs and Blockchain projects Continue reading >>
When Will The Ethereum Mining Craze End?
Please review the Stickies pinned at the top. For BADGES please READ the FAQ for DETAILS. Follow @LTTCompute 30 Jan 2016 Please review the various posts pinned at the top of the forum section for lots of good information on basic installs, setup and questions. For BADGES please READ the FAQ for the DETAILS.Also, don't forget to follow @LTTCompute on twitter for random tweets, posts and updates... ya, random! Location: Portland, Oregon. Stop moving here, please. It's currently impossible to buy any AMD GPU or Nvidia GPU below a GTX 1080 anywhere right now. For those of us looking to build a gaming PC or upgrade our current GPUs (I'm in that boat right now), it's frustrating that people are buying GTX 1070s in sets of 6 to mine away their power bill and electricity produced by the planet's resources to make a little bit of money on the side that will eventually lose all of its value. A friend of mine is building a PC for 1440P gaming and content creation and barely managed to snag a Founder's Edition 1070 for $399 a week ago when they were in stock for a few minutes. GTX 1060s are now selling *used* for $350 all over Amazon and Craigslist. This is ridiculous. From what I gather from users on this forum, the craze has extended far beyond North America. | PSU Tier List / PSU Whitelist / 80 Plus Efficiency | I like Power Supplies for whatever reason. Feel free to PM me with any questions. System: "External links are not allowed" || Resources for PSU information: "lol can't do that either"|For Corsair support tag @Corsair Joseph or @Corsair Blake BingoFishy , iamdarkyoshi , Deli and 2 others reacted to this It's impossible to get AMD cards here (the Netherlands) that are not RX 550's or R5 250 or whatever and now all the not 'ITX versions' of the GTX 1060 are gone and pretty Continue reading >>
Will Ethereum Mining End Soon? If So, Then What Can I Farm With My Rx480 Instead Of That?
Will Ethereum mining end soon? If so, then what can I farm with my RX480 instead of that? There are many other mining options. And I dont necessarily think PoS will happen soon. There is a lot riding on doing it properly, so I expect it to be rolled out in a disciplined manner instead of rushed. Go to whattomine.com and look at the GPU tab. There are a ton of coins. Once Eth goes PoS, youll have miners moving to other coins and probably selling their cards, so youll see a shake up of earnings, but ultimately, there is plenty of crypocurrency that needs mining power. Also, you can mine to Nicehash, which automatically utilizes your GPU power toward whichever currency/need is out there. Its generally as profitable as Ethereum mining and theyll pay you out in whatever currency you want. For more info on all of this, check out my post GPUs are fairly generalized computation devices. You can use them to mine ALL other cryptocurrencies, however, not all will be profitable to mine. There are many up and coming cryptos that will be profitable. For example, Enjin coin, DNotes etc. You can get the full feasibility report from here Cryptocurrency Mining vs. Bitcoin Mining Profitability . Id suggest you stay away from all cryptos that are based on the following algorithms : SHA-256, Scrypt and X11, since for these, ASICs have already been developed and your GPUs dont stand a chance competing against that kind of computing power. Continue reading >>
Ethereum: Gpu Mining Is Back But For How Long?
Ethereum: GPU Mining Is Back But For How Long? By now, everyone and their dog has at least heard of Bitcoin. While no government will accept tax payments in Bitcoin just yet, its ridiculously close to being real money. Weve even paid for pizza delivery in Bitcoin. But its not the only cryptocurrency in town. Ethereum initially launched in 2015 is an open source, it has been making headway among the 900 or so Bitcoin clones and is the number two cryptocurrency in the world, with only Bitcoin beating it in value. This year alone, the Ether has risen in value by around 4000%, and at time of writing is worth $375 per coin. And while the Bitcoin world is dominated by professional, purpose-built mining rigs, there is still room in the Ethereum ecosystem for the little guy or gal. There may be many factors behind Ethereums popularity, however one reason is that the algorithm is designed to be resistant to ASIC mining. Unlike Bitcoin, anyone with a half decent graphics card or decent gaming rig can mine Ether, giving them the chance to make some digital currency. This is largely because mining Ethereum coins requires lots of high-speed memory, which ASICs lack. The algorithm also has built-in ASIC detection and will refuse to mine properly on them. Small-scale Bitcoin miners were stung when the mining technology jumped from GPU to ASICs. ASIC-based miners simply outperformed the home gamer, and individuals suddenly discovered that their rigs were not worth much since there was a stampede of people trying to sell off their high-end GPUs all at once. Some would go on to buy or build an ASIC but the vast majority just stopped mining. They were out of the game they couldnt compete with ASICs and be profitable since mining in its self uses huge amounts of electricity. Economies of Continue reading >>
Mining - How Do Miners Profit Post-pos, If At All, How Will New Miners Get Their Start, And Who Will Execute The Evm Byte Code (and Why)? - Ethereum Stack Exchange
How do miners profit post-PoS, if at all, how will new miners get their start, and who will execute the EVM byte code (and why)? I've been following the release of Casper/PoS closely, and I'm curious about a few details. How will miners make money (even if GPUs are less valuable)? Are spare compute resources (say RAM, CPU) still somehow "usable" to create value by securing the block chain in a PoS world? How will miners new to Ethereum gain a foothold if they start with no stake and have no ability to mine their first ETH coin? If spare computing power isn't the resource that drives mining, who will be incentivized to participate? Will the mining/consensus system be entirely driven by users of the network, who hold ETH for other reasons entirely (e.g. users of ETH-powered contracts)? And if so, how can they simultaneously use their ETH to power contracts, collateralize contracts (potentially), and simultaneously serve as a "deposit" for Casper? Who will execute the contracts/EVM bytecode? Does PoS make computing power no longer "redeemable" for financial value using the Ethereum block chain? Thanks very much, and looking forward to the next gen of Ethereum! Welcome to Ethereum Stack Exchange! It is preferred if you can post separate questions instead of combining your questions into one. That way, it helps the people answering your question and also others hunting for at least one of your questions. Thanks! 5chdn May 3 '16 at 8:38 The 5 parts of his questions are so closely related and are different aspects of the same thing that I doesn't make me feel bad to see it in a single question. So I won't recommand splitting. Nicolas Massart May 3 '16 at 8:59 I read but not clear. After POS, how to create new blocks and who will do it when all miners to stakers? user3516 Jul Continue reading >>
Mining End Ethereum Community Forum
This PoS really sounds like shit tbh.. if this is really the case how this will work then i don't see many people going this route and slowly ETH will die, if you need to invest money in a block and have the chance of losing your money and this will be like playing in the casino and then ofc those that's rich in ETH already will be the only ones that will benefit, they really need to make this work for both parties and not just for those that have the upper hand and have tons of ETH already to spend. But won't ETH then slowly die if there is nothing for miner's anymore? when it switch to PoS, I mean is miner's not keeping the crypto currency alive, if there is nothing for miner's then we won't be here and will lose allot of interest. If you examine p2p currency as a whole you will see this is where it breaks down and this is where eth could perhaps save it. You are right there about mining and it will die out for investors that are looking to do nothing but plug in the miner and wait for 3 month ROI's. Nothing in the world could work like that and be sustainable. Mining should be highly profitable at the start because miners are taking a chance at perhaps nothing but after that mining has to be only profitable by a few percent. Think about what you're saying from an economic standpoint. There just isn't enough transactions to go around for everybody to make a killing on mining, and since it requires very little investment compared to ROI and very little effort, there is nothing stopping from anyone doing, which eventually leads to accelaration of diff, artificial price points and and eventual crash of the currency. (i think I just explained BTC in 2 lines) Yea makes sense, reason i don't even bother mining on BTC anymore the diff is so hard it's costing you more electr Continue reading >>