Topic: What happen to mining profitability? (Read 1156 times)

simple answer:   Look at how many GPU's sold recently; and why they aren't in stock.

They turned into a % share of the profitability that you lost.

True, the question is how long does the circle (cycle) take to come around again.

This is same pattern that happened back when Bitcoin could be mined off a GPU. Once the asics started squeezing GPU's out, there was Litecoin, Dogecoin, and a few other flash in the pans to fall back on and mine for awhile before overall GPU mining profits dried up to the point only hobbyists and those with extremely low cost or free power could make a buck.

So while Ethereum and a few others, as well as Zcash and clones can spin a profit, it is slowly going down day by day much the same as back then. So short of a new "Ethereum" launching (meaning a GPU mine-able coin that can generate the same interest and profitability as that of Ethereum did) mining with a GPU is soon to move into negative profits for most.

Again, I see the days of cheap GPUs and mining rigs flooding eBay and Craigslist coming real soon, possibly by the end of the year.

As well as before, has its ups and downs and everything in the circle...

Exactly this, in one word difficulty. Even at today's reduced profitability, as fanatic26 pointed out, it is still a lot better profit than many traditional investments. This means people are still going to be adding rigs daily.

You can expect some people to continue to add rigs even after the profitability is gone for you paying 15 cents, as there are a lot of people paying as low as 2-3 cents a kwh. Then there are also the 1000's of the smaller miners who pay no electricity from either still living at home with their parents, living in a utilities included arrangement (college dorms or some types of apartment rentals), people on some type of government assistance, etc. It is essentially pure profit for these types of miners as someone else is basically subsiding their income by making their electric payments for them once they ROI on hardware.

Many long term miners have been trying to warn people to not get in right now. With hardware prices still at well above MSRP and difficulty continuing to skyrocket, I am afraid a lot of recent newcomers will eventually be burnt. So while at this point in time the calculators are still showing decent profit, the next couple of months this will change for the worse. The only way out will be for coins such as Ethereum to not only return to $400, but keep on climbing so as to outrace the climb in difficulty. Plus sooner or later Ethereum is going POS, so at that point any miners left will be looking to jump on the few remaining mine-able coins thus repeating the whole process until we are back to making sub 25 cents a day per rig.

I still make 100%++ p.a which is simply retarded, it cannot and will not last. Savings account is 3.5% p.a. currently. You obviously can find 20% ROI investments quite easily with smaller sums, but anything above that is simply amazing and you should jump on it and not whine.

You are not taking into account difficulty as people bring more miners online. Even if the price stayed flat this whole time you would be making less.

P.S. If you are paying that much for electricity you should stop mining now before you start to lose money.

Delete and create a new one

Alright thanks! or is there any way i can move this topic?

You need to post in the altcoin section.

https://whattomine.com/coins

Before market crash to 60Billion from the original 100Billion

Mining ETH, ETC and some other coins estimation in Whattomine is ranging from $3-4 per 1060 with $0.15 kwh

Right now, we are back to 90Billion market, but the profitablility is ranging from $0.9-1 per 1060 with $0.15 kwh


What exactly happen?

Pre market Dump btc price peaked at $3000

Post market Dump btc price is back to $2700

Even ETH is ranging at around 3xx before Crash, 2xx after Crash. Technically it should be around $2-3 for each 1060 at the current state of price but $1+- is too low.

Any idea?