When it comes to mining of any cryptocurrency, it is important to look into the cost of the cryptocurrency. Once you are able to look at the cost, you would realize whether mining it would be profitable or not. In the last 12 months, cryptocurrency Ethereum has increased by 20 times. Therefore, you might think that it would be worth mining. The truth is that you have to look into the cost and thereafter take a call.
What is Ethereum mining?
Ethereum mining involves verifying the Ethereum transactions in order to earn the cryptocurrency. You need to understand that you are basically lending the processing power of your mining rig in order to verify the transactions. As a set number of transactions are verified, you would be able to earn the cryptocurrency.
Factors on which the mining of Ethereum depends:
There are a few factors which you have to look into while starting the mining operation. Only once you are having the right hardware, you would be able to mine Ethereum profitably.
1 Hash rate:
Hash rate is the rate at which a mathematical problem is solved in order to verify the transaction. The higher the hash rate, the better would be the Ethereum mining capability.
2 Difficulty level:
Ethereum network has been designed in such a way that in any particular instant of time, there can only be a few coins which can be mined. Therefore, the hash rate would keep on increasing and the difficulty level would keep on increasing as well as more miners join the fray.
3 Consumption of electricity:
You have to look at the cost of electricity consumption before deciding whether Ethereum mining can be affordable for you or not. In many of the cases, the amount of electricity which is consumed is significantly higher which makes Ethereum mining unprofitable.
You need to understand that all of these variables can change depending on the location and the time period at which your mining. Moreover, you have to look at the hardware cost as well. When you’re taking into account all of these variables, it would be easier for you to find out whether Ethereum mining can be profitable for you or not. Also, you would be investing an amount upfront in Ethereum mining rig. Therefore, you have to calculate the cost of those finances as well.
Thus, when you’re looking into Ethereum mining and trying to find out whether it is profitable or not, you have to look into these few factors. After you have looked into these factors, you would realize whether cryptocurrency mining is profitable for you or not.
Can you mine for ethereum?
The only way to utilize Ethereum is with the product from mining. However, mining Ethereum means more than increasing the volume of Ether in circulation. It is also necessary for securing the Ethereum network as it creates, verifies, publishes, and propagates blocks in the blockchain.
Is it worth it?
This is a constant question, especially now that the price of Ethereum is rising. This year, Ethereum has seen an almost 20x jump in price. According to Techinasia writer This increase has led people, who hadn’t considered cryptocurrency, to sit down and become suddenly extremely interested. When this happens, I believe that most of the biggest profits have already been made.