Topic: Mining keeps getting rekt (Read 282 times)

The difficulty of these coins balances out eventually to the point where mining is slightly more profitable than buying the coin.

I hope I am not cherry-picking, but I looked at historical ETH revenue data. Let's assume one bought a Radeon RX 570 card for $180 of capital cost ($130 card + $50 rig) and depreciated it over 3 years, while power cost was 7 cents. I also assumed the depreciation + power can be deducted at a 20% tax rate. That is $0.33/day of total expenses per card.

In 1H 2020, the revenue for that card was $0.60/day while Ether price was $200 on average. The cost to mine 1 ETH was $150, while the cost to buy it was $200. I also used data from the entire year of 2019, where it was also 20-40% cheaper to mine the coin than to buy it. Even though revenue was 25% lower than 1H 2020, video card were cheaper too. That same RX 570 would only cost $150 ($110 card + $40 rig) in early 2019.

If you bought a Geforce GTX rig during the bear market and mined, like I did, GRIN/RVN provided double the revenue of ETH. The return was higher than an RX 570 mining just ETH.

I already have spreadsheets showing that the ROI from 2019-2020 was 20-40% per year. That is a phenomenal return compared to the stock market. That's why when RTX 3060's cost just $200 or RTX 3080 12GB's cost just $500, I will buy as many as I can. It's most likely going to be much cheaper to mine altcoins than to buy them, just like with Bitcoin.

I have a different strategy here, reason I say is dumb to mine in the bear market is because price of any coin is much much much lower than to mine it, 60% at least, in some cases I found to be 500%, so is better to just buy it directly and hold it, mining is not good on any circumstance because gpus are getting so expensive in the bull market that makes it not worth it and the liquidity is there to short in the bull market, in the bear market there is no liquidity enough to short, anyway, mining prior this gpu price rise scalper bs was not bad, good old days you could get a mid gpu for 150 usd example rx 580 and it lasted till this bull market, 6 years, now a rx 580 and all polaris is making negative profit, no different than prior bear markets however we are pre bear market and polaris are already in negative profit in all algos except eth, this will get much worse yet.

It's not the market's fault or Ethereum's fault that the market turned out this way, I mean its very soon for such to happen, I put all the blame on Luna CEO and UST if not things will go really slow, at this stage if ETH failed to go PoS algorithm they are bastards.

There are miners out there that will capitulate.

It doesn’t make sense but the issue is that many miners bought most of their gear on credit. Typically with a credit card with some 20% APY rate.

It will reach the point where they will need to sell everything ASAP because the interest alone will be more than the profits from mining.

Sad story but I’ve seen it happen.

I can't sell my mining rigs anyway, because (#1) it's dumb to not mine during a bear market, (#2) I'll incur depreciation recapture under IRS Section 179, forcing me to pay $10k of additional income tax.

Cause most of the mining rigs in ETH now are already running way over their ROI. You won't see them turn off their rigs anytime soon, so the diff will stay this way until the diff bomb forces them out because of the PoW-PoS transition.

Lol @Metroid, you those who have been in this game for a long time would understand, right now you have a smelly mouth they say, hehe I bet 90% of miners won't be able to keep up, I've prepared myself because bad market in crypto space is norms and I have gotten used to it, its always the every 4years cycle.

This will get worse and worse, luckily eth still around and profit still high to where this will get once eth goes pos, after eth goes pos expect everything to be negative profit for at least 6 months. You trolls dont know how bad this will get, 95% of you all are spoiled, a 3070 60mhs got to almost 10 usd per day at top, soon will be around 10 cents at bottom. This is how extreme mining and cycles are, when you invest in something, always expect the worse and if you are still okay with the worse then you have nothing to fear.

Yes but now all LHR cards have more hashrate - diffi increase, profits go down - so in the end you get same amount of ETH.

I wait for the next bear market to update my 200 GPU´s

I will be happy to get such a deal today but I doubt this will happen any time soon, it will takes months into a bear market phase to get graphic cards at such a price, lick are those who built a whole mining farm with LHR graphic cards, now they have almost double hashrate out of no where.

yeah i bought 30x P106-100 for 70$ years ago or the P106 with 3GB for 25$ - this cards are good on flux or ergo.  good deals

I don't quite get that, you sold a box containing 20 GTX1060 graphic cards for 140$? What 😦  ?? I could remember that a single 1060 costs 70$ when things got even uglier at that time, I wasn't a miner and I can't afford the card still, God damn! That was a giveaway mehn.

Many (stupid) n00b miners who were expecting to get rich quick will panic, shut down, then sell their rig. That's what I did in 2018, except I sold 10 rigs for pennies on the dollar to 2 lucky buyers who probably made 500% ROI by now. I remember packing three boxes with 20 GTX 1060's each, then sending them off for just $140 per card.

It's still too early for mining farms to shut down their rigs at this time, crypto mining is still a bit profitable, not until the whole profit isn't there anymore many will still keep mining no matter what's happening, is Ethereum made it down to 1000+ profit will be toast.

It was far more profitable to mine GRIN/RVN since I had GeForce cards. Revenue was $0.60-0.80 while power was $0.25/day. At least the video cards only cost $135 for GTX 1060 6GB's.

I remember back in the 2018-2019 ETH bear market days. I think my old RX 470 4GB made like $0.20 profit using $0.20 electricity. So basically broke even. It was 30mhs or close to it. So that’s equivalent to like $0.70/100mhs.

Yeah mining sucked and it was cheaper to buy. ETH kept going lower and lower and I was waiting for those with expensive power to shut off their rigs, they never did. Difficulty was always high, even in bear market.

If you think $1.50 of revenue/day for 100 Mh/s is too little, wait until the true bear market starts after ETH PoS... we'll be lucky to get $0.80/day of revenue for 100 Mh.

Pretty normal whats happening.

Lol, mining has been great for 2 years no reason to complain.  This is how markets work, you will not have high unreasonable profits for years on end.

remember ETHlargement pill was released at the start of bear market.