Last year, crypto mining proved to be a profitable side business for tech savvy people who had set up their mining computers.
Citing data from Susquehanna, CNBC shows a chart that indicates that mining Ethereum using graphics processing units (GPUs) last June earned miners a profit of $150. However, fast-forward to November 2018 and that figure is now down to $0.
In June, the price of Ether peaked at around $380 for the month, according to CoinMarketCap. Notably, when Ether rose to $1,400 at the beginning of January, miners' profits for the month were at $64. This is probably due to the fact that more people were investing in their own mining rigs at home.
At the time of publishing, the value of Ether is $178. Yesterday's market bloodbath saw crypto prices across the board drop between 10-20 percent
According to the report, the hashrate for Ethereum fell this year. The higher the hashrate, the higher the chance for miners to locate the next block, which, in turn, means a crypto reward. Yet, in a note to clients, Christopher Rolland, a semiconductor analyst at Susquehanna, said that combined factors mean that mining Ether is "no longer profitable."
As a result, it's believed that chipmaker Nvidia will see a decline in sales. Rolland went on to say that the company's crypto-related revenue is down by $100 million quarter-over-quarter. He added:
We estimate very little revenue from crypto-related GPU sales in the quarter, consistent with management's prior commentary that they were including no contribution from crypto in their C3 Q18 outlook. 3Q18 mining profitability continued to decline, as Ethereum prices have fallen more than -70% since the beginning of 2018.
Last year, the company would have been in its element. When the price of Bitcoin nearly reached $20,000, new miners entered the field in droves.
That, however, also feels like a lifetime ago. Of course, while the markets haven't created much excitement this year, many are still confident it'll rise again.
Erik Voorhees, CEO of ShapeShift, is one such individual. Recently, he predicted that in the next financial crisis the price of Bitcoin will rise. Nigel Green, founder and CEO deVere Group, believes that the crypto market will grow 5,000 percent in the next 10 years.Do you think crypto mining will be profitable again? Are you a miner? Have you made money from it? Let us know in the comments below. Images courtesy of Shutterstock, Susquehanna
11/15/2018 / 21:00:07 Source: livebitcoinnews