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Extraction of the cryptocurrency The etereum is carried out using a high-powered computer system, however, it is no longer profitable thanks to the state of the markets and, of course, to the increase in energy costs.
A recent report published by CNBC states that the mining cryptocurrency will soon be a thing of the past, since the business is no longer profitable.
Crypto fanatics from around the world will remember once last year, when the crypto bull run saw all currencies reach their peak with Bitcoin touching $ 20,000 and has garnered a lot of attention from several big points of information .
Space went into chaos with almost everyone looking at the process of extracting digital currencies where anyone could install mining rigs in their homes and earn digital currency online, although energy costs were exorbitant.
A recent analysis by Susquehanna states that the mining of Ethereum is no longer a profitable venture as profits per month jumped from around $ 150 a month from the summer of 2017 to almost nothing for today.
As reported by Head of BTC:
"For those who do not know, mining involves the continuous operation of the computer because all systems on a network compete with each other to solve complex numerical problems.The first system to solve the problem gains an established amount of ether or bitcoin . "
Unfortunately, although mining giants like Bitmain have created a private "monopoly" in the digital currency mining space. It has been reported that Bitmain's hashrate is already over 40 percent on the Bitcoin network and is going to reach the fatal over 50 percent.
In addition, the value of Ethereum fell about 70 percent from last year and is currently trading at $ 178 after the market crash this week, which brought the Bitcoin below the resistance level of $ 5,500.
All in all, this caused a domino effect on the mining industry which in turn made it unattractive to potential miners.
The crypto-mining space has even influenced the popular chip designer, Nvidia's sales data. Christopher Rolland of Susquehanna said that the company's QoQ cryptocurrency collapsed and lost nearly $ 100 million.
"During the quarter we estimate very little revenue from GPU sales related to cryptography, consistent with the management's preliminary comments that did not include any contribution from the crypto in their C3Q18 prospects".
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