Bear market and Hashrates in decline The ETH of mining is no longer profitable and finds analysis results


The mining of Ethereum (ETH) using a graphics processing unit (GPU) is no longer profitable, according to an analysis conducted by Susquehanna, a global trading and technology company based in the United States. The CNBC reported on November 13 on the conclusions of Susquehanna, which indicate the continued crisis in crypto markets and the decline in network hashes as reasons for the decrease in profits.

In Susquehanna's analysis, the monthly profit for ETH miners using GPU-based configurations has hit a $ 0 round since November 1 of this year, from almost $ 150 to July 2017 Susquehanna notes the decline in the price of Ethereum as the main factor, with the altcoin currently trading at $ 204, down nearly 85% from its all-time high of around $ 1,350 in mid-January 2018.

In particular, however, on July 17, 2017, when Susquehanna's figures indicate a profit of $ 147 for GPU-dependent miners, the business was trading at around $ 175, just slightly lower than today's valuation.

To explain this scheme, Susquehanna analyzed a second factor: the hashrate of the Ethereum network, which decreased substantially in 2018. A higher hashrate is more beneficial for miners, since it increases their chances of calculating the next block and to be remunerated in ETH.

Susquehanna's chart shows the decline in mining profits of ETH. Source: CNBC

Christopher Rolland, Susquehanna's semiconductor analyst, told CNBC that, in this context, the use of the flagship GPU card of the Nvidia chipmaker "is no longer profitable", observing that revenues deriving from the encryption of the 39; company fell about $ 100 million in the quarter. He predicted that these revenues would probably be "close to zero" in the next Nvidia 3Q report, which will be released this week:

"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".

As reported yesterday, Trefis analysis company experts predicted that Nvidia's total third quarter revenue will increase, however, as Susquehanna predicted that sales from cryptocurrency assets will remain in a downward trend.

In August, the shares of Nvidia collapsed as a result of the decrease in digital money extraction activities, as the crypto markets have declined.

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