With the massive wave of people flocking to hop on the cryptocurrency bandwagon, there is no way it is worth your time right? Well that depends…
First Off Lets Go Over What Ethereum Is
Ethereum is a cryptocurrency like Bitcoin that offers superb anonymity and security. Of course nothing is perfect, but it is more secure than sending someone a fiat currency.
It works off of the same sort of idea as Bitcoin. To send Ether (Ethereum) you must pay a transaction fee. This transaction fee goes towards incentivizing miners. Miners are people with the hardware to verify transactions on the network. These are typically specially made computers with many powerful graphics cards. These graphics cards run an algorithm to verify transactions on the Ethereum network. In exchange for verifying transactions, miners receive Ether. I could explain further, but you get the basic idea.
Ethereum has a lot of growing ahead of it till it can compete with Bitcoin. However, in my personal opinion I prefer it, because the Bitcoin network is way more congested than the Ethereum network. Ethereum has had its growing pains, but transaction ‘send/receive’ times are still much faster.
Do You Have To Buy Equipment?
For those who already have a Windows computer with a beaf-y graphics card mining is still worth checking out. At the very least if you like tinkering with computers it could be a very fun hobby that could bring you a little bit of extra money.
The problems come in when you have to go out and buy equipment. Because of the surge of miners the profitability ratio has dropped quite a bit. It is still profitable to mine for the average recommended graphics cards, but the cost of a mining computer is quite expensive! The best graphics card for the money to mine with costs anywhere from $20-$60 below $300! That graphics card will produce a little over $200 a year, so clearly not a reasonable ROI.
Take Into Account The Cost Of Power!
It may seem like the most straight forward idea out there. A powerful computer will use more than your MacBook Air. Yet, more than once I have heard of people just completely overlooking the cost of power! Before you even consider mining check out the cost and do the math!
Make Sure Your Power Supply Can Handle Mining
You can have a great computer with top notch specs and still have a crap power supply. In fact, if your computer is pre-built your power supply most likely is! Gaming PC and even regular computer manufacturers cheap out on the power supply. Because unless your going to be taxing your computer at 100% usage – 100% of time, it isn’t worth their money, cause it won’t be a problem.
However, with mining you will be taxing your computer in exactly that manor! Which when it comes to a cheap power supply can be VERY dangerous. Best case scenario after a while it just stops working, worst case it fries all other components and could catch fire!
So always check the TDP of your graphics card(s) and ensure power supply has at least 100 watts over it. Although I would HIGHLY recommend doubling the total TDP to be truly safe!
P.S I am not responsible if your computer dies while mining. Why would I anyway, am I right?
Will Ethereum Mining Continue To Be Profitable?
For a while. Not for a long time though! The only way that Ethereum will continue to stay profitable for any extended period of time will be if people stop joining the mining craze. If people were to slowly stop mining the profitability would actually increase.
What Do I Think?
Personally, I think for at least the foreseeable future Ethereum mining profitability will continue to slowly decline. However, I believe it is also a bit of an ebb and flow process. As the profitability goes down more and more people stop mining. When people stop mining the profitably slowly goes back up. Then about the time that is a good profitability again, people will flood back and the whole process starts over again.
For the time being Ethereum mining is worth it for those with the correct hardware to do so. It can even been quite a fun hobby!
Tell me your opinion in the comments section below! This will be a great topic to discuss with all of you guys!