Ethereum mining has become unprofitable for many miners connected to a traditional energy grid for the first time since 2020. While energy prices are soaring, the price of Ethereum has dipped below R20 110.
Electricity costs more than R 3,54 per kWh in places like New England, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island.
Using a single overclocked Nvidia 3090 to create 130mh/s will cost miners approximately R 29,76- R34,27 per day in power. At today’s price, the Ethereum reward for the identical GPU is only (0.001625 ETH) R32,66. As a result, every miner paying more than R3,94 for power is now paying more than the value of Ethereum mined.
With the money saved on electricity, it is more cost-effective to turn off the mining machine and purchase Ethereumspot. Mining using GPUs has become increasingly unprofitable over time. Ethereum remains the most profitable cryptocurrency to mine with a GPU, which means that the others are even less profitable. The graph below depicts Ethereum’s profitability over time.
Other options for mining
There are numerous coins that can be mined with a GPU. However, the others are likewise significantly lower. Ergo yields -R0,97, RavenCoin -R9,33/day, Ethereum Classic -R150, and Firo -R11,26 on a single Nvidia 3090 at R3,94kwh. When Ethereum ultimately switches to proof of stake, these are the competitors for GPU hash rate.
The problem is that increasing the number of miners on the network drastically increases the mining difficulty, which means that the price of the tokens must also rise significantly in order to be remotely profitable.
Either the difficulty must be reduced or the price must rise above R22 523 to make Ethereum lucrative again. Alternatively, if energy prices fall below R3,86kwh to meet average rates in other parts of the US, Ethereum will become profitable as well.
Other countries’ electricity rates are much higher than those in the most expensive states. The average cost of electricity in the United Kingdom, Germany, Belgium, Spain, and Denmark exceeds R4,02kwh, rendering GPU mining unprofitable in most of Europe.