Mining the cryptocurrency Ethereum is done by using a high powered computer system, however, it is no longer profitable thanks to the state of the markets and of course, rising energy costs.
A recent report published by CNBC claims that mining cryptocurrency is soon to be a thing of the past as the activity is no longer a profitable one.
Crypto fanatics from all over the globe will remember a time last year when crypto’s bull run saw all the currencies reach their high with Bitcoin touching $20,000 and it garnered a lot of mainstream attention from several big news outlets.
The space went into chaos with almost everyone looking towards the process of mining digital currencies in which anyone could install mining rigs to their homes and earn digital currencies online, although the energy costs are extortionate.
A recent analysis by Susquehanna posts that mining Ethereum is no longer a profitable venture as the profits per month has taken a big leap from around $150 a month form the summer of 2017 to almost nothing for today.
As reported by BTC Manager:
“For the uninitiated, mining involves running the computer continuously as all the systems on a network compete among each other to solve complex numerical problems. The first system to crack the problem earns a set amount of ether or bitcoin.”
Unfortunately, although mining giants such as Bitmain have created a private ‘monopoly’ in the digital currency mining space. It has been reported that Bitmain’s hashrate is already over 40 percent on the Bitcoin network and it is on its way up to reaching the fatal over the 50 percent level.
Furthermore, the value of Ethereum has gone down by around 70 percent over this past year and is currently trading at $178 following this weeks market crash, which sent Bitcoin below the $5,500 resistance level.
All things considered, this has caused a domino effect on the mining industry which has in turn made it appear unattractive to prospective miners.
The crypto mining space has even impacted the popular chip designer, Nvidia’s, sales figures. Christopher Rolland from Susquehanna stated that the firm’s QoQ cryptocurrency has tumbled and has lost almost $100 million.
“We estimate very little revenue from crypto-related GPU sales in the quarter, consistent with management’s prior commentary that they were including no contribution from crypto in their C3Q18 outlook.”
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