Topic: What will kill GPU mining profitability in 2017? (Read 14053 times)
Just switch to Vertcoin (VTC) if you want to support a GPU only coin. They will always stick to a non Asic algo.(currently Lyra2RE).
Cryptocurrency mining has hit the mainstream and everyone and their dog wants to build a rig and rake in the dollars. This signals the beginning of the end. The only reason mining continues to be profitable is the coin prices keep going up. Take ethereum for example. The difficulty has doubled over the last month due to the massive increase in miners but the profit hasn't gone down because the price has gone up even more. When eth stops rising, there will still be more new miners coming online for a while and the difficulty will continue to rise resulting in a plummeting mining profit.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
I think you're wrong with your arguments. People that get into mining, also will HODL some coins and they may even buy some (back) when the price drops.
Plus I doubt a (GPU) miner will sell its coin at a loss. (power costs)
So I do think the large number of miners is the main reason why the prices are quite high right now.
gpu mining is being strangled by the mass of incoming asics. then when eth goes pos othercoins will get hammered. then unless another coin comes out like eth did it will be back to mining at a loss and hoping the coins prices go up in the long term. these asics are massively overpriced as always and they make no sense to me to buy them
The thing that would kill GPU mining profitability would be the mass realizing the biggest profit to be made is investing in ICO with a strong development team behind it and a good use case. But, GPU mining would still continue even if it is not profitable simply because it is fun at least for me haha.
good point, I was discussing this with my brother in law today
for established miners, it will make sense to keep at it while profits are good
but for newcomers (specially those afraid to try mining) more likely ICOs will be their main avenue of investment
The thing that would kill GPU mining profitability would be the mass realizing the biggest profit to be made is investing in ICO with a strong development team behind it and a good use case. But, GPU mining would still continue even if it is not profitable simply because it is fun at least for me haha.
"Green Energy" is usually the most expensive when you factor in solar panel/inverter etc depreciation.
The pollution involved in manufacturing solo panel is also high.
Magnetic generator anyone?
"Green Energy" is usually the most expensive when you factor in solar panel/inverter etc depreciation.
I think as long as you have a competitive electricity price , all that discussed before isn't important as you will always be in profit and will not surrend fast.
Cheap electricity is the key here.
If mining gets to the point where only the ones with "cheap" electricity can mine then its not going to be worth the hassle for most.
Consider someone paying 10c/KWH, at that rate as long as they made more than >$0.36 per GPU they would be in profit.
Say they are making $0.10 per day net. After 1 year they would only make ~$36.50. Right now you can make that in less than a week. Most will just eBay their GPUs rather than earn so little.
Some people use Green Energy for mining.
That pc is tax free in delaware so 1580 is the price. I get a 98 dollar best buy discount so it is 1482. If it earns 8 a day then 6 a day then 4 a day then 2 a day you average 5 so in 200 days it is 1000 back. bringing the cost of a quality pc under 480 .
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
Isn't that profitability/return only true until they get their utility bill? I guess if you're in a dorm and someone else is paying the bill, great, but other than that?
I am not sure but I believe he was talking about the net profit per day which means that electricity bill was already subtracted out in his figures. But I will wait and let him speak for himself.
you are correct. so if you have a need for a stud pc for whatever reason other then mining. Mining now allows you to get a better pc.
Ie I need at least a nvidia 1060 for my design work . I can go to a 1070.
My numbers are post power. and the key is not longer cheap power. at this moment you can gpu mine at 25 cents a kwatt and make money.
I mined at 12.7 cents in may and paid 535 for power I earned pre power over 3k so net of 2500 last month.
So if I was at 25 cent power and paid 1000 for power earn pre power 3k net of 2000 last month.
So the question is do we go up a lot and we are better today then the first day of this thread.
Do we crash and burn?
Or do we slow slip down to reality?
I like the slow slide. as my guess as most likely.
Not the crash and burn.
Cryptocurrency mining has hit the mainstream and everyone and their dog wants to build a rig and rake in the dollars. This signals the beginning of the end. The only reason mining continues to be profitable is the coin prices keep going up. Take ethereum for example. The difficulty has doubled over the last month due to the massive increase in miners but the profit hasn't gone down because the price has gone up even more. When eth stops rising, there will still be more new miners coming online for a while and the difficulty will continue to rise resulting in a plummeting mining profit.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
I agree 100% with your sentiment.
Cryptocurrency mining has hit the mainstream and everyone and their dog wants to build a rig and rake in the dollars. This signals the beginning of the end. The only reason mining continues to be profitable is the coin prices keep going up. Take ethereum for example. The difficulty has doubled over the last month due to the massive increase in miners but the profit hasn't gone down because the price has gone up even more. When eth stops rising, there will still be more new miners coming online for a while and the difficulty will continue to rise resulting in a plummeting mining profit.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
If eth stagnates for a while or even (heaven forbid) drops a lot, then mining will quickly become unprofitable for all but those with the cheapest electric. Quickly you will see ebay full of people trying to sell their no longer profitable RX470/480/570/580 etc. If I was thinking of buying a decent video card for gaming, I would wait till the end of the year as I'm sure I will be able to pick up a used RX570 for less than $50.
The same thing applies to all other cryptocurrencies. They will only be profitable if their price keeps rising faster than the difficulty. This is very unlikely to continue for long. The best way to make money is directly investing in the coins themselves. Either way, profit depends on increasing coin value. But the difference is that unprofitable mining rigs will not be worth much as ebay will be bloated with used parts and resulting low prices. Whereas coins will still have value long after their mining profitability drops into negative territory.
What will kill GPU mining profitability? Easy, too many people jumping on the bandwagon. That will kill it for sure for most. I expect this to happen by the end of the year if not sooner. GPU mining should be looked at more as a hobby than a way to get rich. If you starting out now, the best you can realistically hope for is a break even ROI. Maybe you will do better, maybe worse but forget about riches. The lucky ones are those who were setup last year before it got so popular. I wish I was one of them.
I'd add that what is most worrying is your 1. ETH's switch to POS. Coindesk quotes Vitalik when he says,
http://www.coindesk.com/ethereum-casper-proof-stake-rewrite-rules-blockchain/
Most likely we will feel a decrease in profitability, but im confident mining will not simply roll over and die.
Quote
"I prefer not to give timelines," Buterin said, though on social media he recently gave a perhaps too rosy estimate of late 2017.
http://www.coindesk.com/ethereum-casper-proof-stake-rewrite-rules-blockchain/
Most likely we will feel a decrease in profitability, but im confident mining will not simply roll over and die.
5 months ago, Vitalik Buterin said there was a 50%-80% chance of ETH switching to POS in 2017: https://np.reddit.com/r/ethereum/comments/5lfugz/eip_186_modified/dbvu8fd/?context=3
This was, of course, before Ethereum got pumped, so that may change things.
This was, of course, before Ethereum got pumped, so that may change things.
I think as long as you have a competitive electricity price , all that discussed before isn't important as you will always be in profit and will not surrend fast.
Cheap electricity is the key here.
If mining gets to the point where only the ones with "cheap" electricity can mine then its not going to be worth the hassle for most.
Consider someone paying 10c/KWH, at that rate as long as they made more than >$0.36 per GPU they would be in profit.
Say they are making $0.10 per day net. After 1 year they would only make ~$36.50. Right now you can make that in less than a week. Most will just eBay their GPUs rather than earn so little.
I think as long as you have a competitive electricity price , all that discussed before isn't important as you will always be in profit and will not surrend fast.
Cheap electricity is the key here.
I think as long as you have a competitive electricity price , all that discussed before isn't important as you will always be in profit and will not surrend fast.
That pc is tax free in delaware so 1580 is the price. I get a 98 dollar best buy discount so it is 1482. If it earns 8 a day then 6 a day then 4 a day then 2 a day you average 5 so in 200 days it is 1000 back. bringing the cost of a quality pc under 480 .
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
Isn't that profitability/return only true until they get their utility bill? I guess if you're in a dorm and someone else is paying the bill, great, but other than that?
I am not sure but I believe he was talking about the net profit per day which means that electricity bill was already subtracted out in his figures. But I will wait and let him speak for himself.
That pc is tax free in delaware so 1580 is the price. I get a 98 dollar best buy discount so it is 1482. If it earns 8 a day then 6 a day then 4 a day then 2 a day you average 5 so in 200 days it is 1000 back. bringing the cost of a quality pc under 480 .
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
Isn't that profitability/return only true until they get their utility bill? I guess if you're in a dorm and someone else is paying the bill, great, but other than that?
Not in the market for a prebuilt but I have a best buy elite status. So I get 6.25% off that pc. It would earn 7 or 8 dollars a day.
Which means under 200 days for it to roi.
I wonder if it fits a second card.
Which means under 200 days for it to roi.
I wonder if it fits a second card.
Thats hoping the ROI stays same or flat, but with difficulty rising and if prices dont you will not get the same 200 days ROI FYI
You completely miss my point.
People need pc's for work and play .
It is a prebuilt pc with warranty that gives you a daily pay back when you sleep.
I could sell that pc to a lot of people and offer to set the mining up.
What does it mean you get a top of the line pc for hundreds less.
I am not looking at it from a miners viewpoint at all. But from the viewpoint of a person that buys higher end pc's it makes the pc far more attractive if it pays back money while you sleep.
That pc is tax free in delaware so 1580 is the price. I get a 98 dollar best buy discount so it is 1482. If it earns 8 a day then 6 a day then 4 a day then 2 a day you average 5 so in 200 days it is 1000 back. bringing the cost of a quality pc under 480 .
My point is boosting coin prices will sell pc's and pc companies are starting to see the sales. which means they will feed some money into coins as a commercial of sorts.
Or is a meaning less concept in this example. as no one looking to roi will buy this. they would build a 2 x 1080ti machine of the same price and run it as an open careless rig.
this is for a dorm and a guy that wants a stud pc for his dorm it just got a lot cheaper due to mining potentail.
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