The End of Profitable Individual Ethereum Mining
Recent reports confirm that mining Ethereum (ETH) using high-performance computer systems is no longer profitable. The golden era of cryptocurrency mining appears to be over, as this activity no longer generates significant returns.
Cryptocurrency enthusiasts may recall the excitement during last year's bull market, when nearly all digital assets surged to all-time highs (ATHs), capturing mainstream attention. This frenzy extended to crypto mining—a business where anyone could set up equipment in their basement or dorm room to earn digital currencies online.
However, a Susquehanna analysis reveals that Ethereum mining has ceased to be a viable side hustle. Monthly profits, which peaked at around $150 in mid-2018, plummeted to nearly zero by November 2018.
How Mining Works
Mining involves running computers continuously as systems compete to solve complex numerical puzzles. The first to solve the problem earns a block reward in Ethereum or Bitcoin. Unfortunately, industry giants like Bitmain have created a private monopoly, controlling 42% of Bitcoin's hash rate—alarmingly close to the 51% threshold that could destabilize the network.
Key Factors Behind Ethereum Mining's Decline
- Plummeting ETH Value: Ethereum's price dropped over 70% in 2018, hovering around $177 (per CoinMarketCap).
- Dominance of Mining Corporations: Small-scale miners can't compete with industrial operations.
- Declining Hash Rate: Reduced network participation further diminishes profitability.
👉 Why Ethereum's shift to Proof-of-Stake matters
Broader Impact on Crypto-Related Industries
Nvidia's Falling GPU Sales
Semiconductor analyst Christopher Rolland notes Nvidia's crypto-related revenue dropped by ~$100 million quarterly. CEO Jensen Huang confirmed "negligible" crypto GPU sales in late 2018—a stark contrast to Q1 2018, where crypto accounted for 9% of revenue.
Gigabyte's Revenue Downgrade
Taiwanese hardware manufacturer Gigabyte slashed 2018 forecasts due to dwindling demand from crypto miners, as reported by BTCManager.
FAQ: Ethereum Mining Profitability
Q: Can I still mine Ethereum profitably at home?
A: With current hash rates and ETH prices, individual mining is unlikely to cover equipment and electricity costs.
Q: What alternatives exist for earning Ethereum?
A: Staking, decentralized finance (DeFi) yield farming, or participating in Ethereum 2.0 testnets may offer better returns.
Q: Will Ethereum mining disappear completely?
A: Yes—Ethereum's transition to Proof-of-Stake (PoS) will phase out mining entirely, likely by 2023.
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