Ethereum Mining No Longer Profitable For Many Miners As Energy Prices And Eth Dip Cause Perfect Storm

For the primary time since 2020, Ethereum mining has change into unprofitable for a lot of miners related to a conventional power grid. The worth of Ethereum has dropped under $1,250 whereas power costs are skyrocketing.

The common value of electrical energy in states akin to New England, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island is over $0.22 per kWh.

Utilizing a single Nvidia 3090 overclocked to generate 130mh/s will value miners round $1.85-$2.13 per day in electrical energy. The Ethereum reward for a similar GPU is simply (0.001625 ETH) $2.03 at at the moment’s worth. Due to this fact any miner paying greater than $0.245 for electrical energy is now paying extra for electrical energy than the worth of Ethereum being mined.

At this level, it turns into less expensive to show off the mining rig and purchase Ethereum spot utilizing the cash that may in any other case be used on electrical energy. The profitability of mining with GPUs has been steadily reducing over time. Ethereum continues to be essentially the most worthwhile cryptocurrency to mine with a GPU that means the others are even much less worthwhile. The under graph reveals Ethereum’s profitability over time.

Different choices to mine

There are many various cryptocurrencies that may be mined with a GPU. Nonetheless, the others are additionally down significantly. At $0.245kwh, Ergo yields -$0.06, RavenCoin -$0.58/day, Ethereum Traditional -$0.66, and Firo -$0.70 utilizing a single Nvidia 3090. These are the contenders for GPU hashrate when Ethereum lastly goes to proof of stake.

The difficulty is that a rise in miners on the community will dramatically enhance the mining problem that means that, to be remotely worthwhile, the worth of the tokens can even have to extend significantly.

For Ethereum to change into worthwhile once more, both the problem must lower or the worth must rise above $1,400. Alternatively, ought to power costs drop under $0.24kwh to match common prices in different components of america, Ethereum would additionally change into worthwhile.

Electrical energy costs in different international locations are even increased than even the highest-priced states. The common value in the UK, Germany, Belgium, Spain, and Denmark is above $0.25kwh, making GPU mining unprofitable throughout most of Europe.

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