When it comes to Cryptocurrencies, their prices have a major impact on the profitability of their mining. Cryptocurrency mining is set in such a way that it becomes more difficult with time. It was cheaper to mine one Ethereum two years ago than it is today. The recent drop in most altcoin prices has made many question the profitability of Crypto mining. Did you know that you can still make profits mining Ethereum today?
Ethereum Mining Is Different From Bitcoin Mining
Although Bitcoin, the world’s most popular Cryptocurrency, and Ethereum share various similarities, they also have their differences. One major difference is in the way they are mined. Whereas Bitcoin mining uses Proof-of-Work (PoW), Ethereum mining relies on the Proof-of-Stake protocol.
One major benefit that Ethereum miners enjoy over Bitcoin miners is low power consumption. The PoW protocol creates new coins using electricity and hardware. This makes electricity cost an important factor to consider. In regions where electricity is expensive, it is viable to mine coins through the PoW.
Ethereum miners have little to worry about electricity cost. PoS mining is known for not being power-intensive. The process allows the miners to transform their Cryptos into more Cryptos. Furthermore, Ethereum miners can lock their coins to keep them secure. The miners are rewarded even without incurring huge electricity bills and purchasing expensive hardware.
Factors To Consider Before Getting Into Ethereum Mining
Energy cost is one of the most important factors that you should consider when you want to become an Ethereum miner. Different mining machines have different power needs. Whereas standard mining rigs consume a maximum of 100W, those with higher harshing rates may require up to 1,000W. The cost of electricity in your area will determine which machine you will use.
Ethereum has shifted to the proof-of-stake protocol making it easier the miners to stake coins. Furthermore, Ether miners also have access to various mining options. Although you may opt to use powerful GPUs, you can join various mining pools at a low fee.
Different mining hardware operates at different speeds called hash rate. A mining hardware or rig with a high hash rate will solve the complex mathematical equations involved in Ethereum mining fast. However, although machines with high hash rates will mine more coins in a given time than the others, they are also expensive.
You should also consider the level of mining difficulty. When the level of difficulty is high, your mining rig or hardware will create less Ethereum in a given time. One of the main factors that lead to an increase in the level of difficulty is the increasing number of miners.
Should You Get To Ethereum Mining?
As mentioned, Ethereum mining process is not expensive. Consequently, those engaged in this activity are still making profits despite the recent reduction in Cryptocurrency prices. Using renewable and cheap sources can enable the miners to earn even more profits with the low coin prices. If you have been planning to get into Ethereum mining, go ahead and get the necessary tools. Given that the demand and use altcoins are expected to continue growing, Ethereum mining will only get profitable going forward.