This graph shows how cryptocurrency mining alone is no longer profitable


Source: Susquehanna

The extraction of cryptocurrency is not what it used to be.

Last year, the "mining" process of earning new cryptocurrencies using high-powered computers, then selling such digital assets, became a lucrative business for experienced entrepreneurs who installed mining platforms in their basements and dorms.

But this side-bustle is no longer profitable if you are digging for the cryptocurrency ethereum using kits containing GPU (graphics processing unit). The month's profit is down for about $ 150 from last summer, at around $ 0 for this year's November, according to Susquehanna's analysis.

In the mining industry, the machines work 24 hours a day and compete against other computers all over the world to solve complex math problems. The first computer, or more computers, to solve the problem gains a fixed amount of bitcoin or ethereum.

The hashrate, or speed at which a computer can complete that operation has drastically fallen for ethereum this year. A higher hashrate is better for the miners and adds the opportunity to find the next "block" and then get the reward of the new cryptocurrency.

The value of ethereum meanwhile has fallen by over 70% this year, trading around $ 205 on Tuesday, according to CoinDesk's data.

The combination of these factors means that mining ethereum using a GPU, Nvidia's flagship graphics card, "is no longer profitable," said Susquehanna semiconductor analyst Christopher Rolland in a note to customers on Tuesday.

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