Business

Ethereum mining is no longer profitable: price collapse compared to energy costs


von Andrea Link
According to a calculation by Crypto Slate, ETH mining is no longer profitable in many locations. Falling stock prices coupled with rising energy prices make it hard to dig to cover costs.

Energy prices also shot up during Russia’s war against Ukraine, and coupled with a declining market, it is becoming increasingly unprofitable to mine Ethereum. At press time, ETH is just over $ 1,100 as the cost of energy rises worldwide. According to a report by Crypto Slate5, mining in the United States is no longer economically viable, and this at a calculated average price of US $ 0.22.

With a Geforce RTX 3090 and 130 MH / s, according to the calculation, and the current price of Ethereum, it is no longer possible to mine to cover the costs. In most of the EU this has been the case for some time due to rising energy prices. In Germany the EEG surcharge will no longer apply, which will bring some relief, but again the prices here will not come close to what is required in the US. As a result, many had already given up on their “hobby” and offered cards in large numbers on Ebay.

Cryptocurrency experts recommend mining other cryptocurrencies, but since those are in the red too, the choice won’t be easy. Especially since the other coins will be harder to mine as the hordes descend on these alternatives. If you don’t find anything interesting to dig into, you can also work on the spot market and hope for a price increase. According to Crypto Slate, in order to re-mine ETH to cover costs, the price must at least exceed US $ 1,400 and the electricity price must be less than 0.24 US cents per kilowatt hour.

Either way, the cryptocurrency industry will experience its first big “Black Friday” in 2022. So far, the market has fluctuated, sometimes sharply, but cyclically. You don’t see it this year, which is now also reflected in the upheavals. Four months after the infamous Super Bowl announcement, Coinbase is laying off around 1,100 employees, or 18% of the workforce. The reasons for this are the impending recession and the goal of becoming more efficient after rapid growth.

Those: Crypto Slate

About the author

hiyabad

Leave a Comment