Is mining Ethereum still profitable?

09 Sep, 2018
by David Robb
Is mining Ethereum still profitable?

Ethereum (ETH) has been one of the major cryptocurrencies worst hit by the recent price crash. Many are now questioning whether or not it's still profitable to mine Ethereum. 

A recent analysis suggests that the hashrate on the Ethereum network has dropped significantly, after a period of continuous growth. It is now at around 270 terahashes, down from 300 at the start of August.

Read more: Ethereum node count down 40% over 12 months

This drop suggests that miners are abandoning the Ethereum blockchain, as the costs of mining are now possibly outweighing the potential gains. A turnaround is particularly hard to see with ETH, as recent concerns about scalability and other issues have contributed to the broader crypto market sentiment, which is increasingly pessimistic.

Read more: The ETH 2018 price dip chronicleVitalik Buterin responds to claims that "the collapse of ETH is inevitable"

Not only does it suggest dwindling confidence in the value of cryptocurrency, a decrease in mining activity could also be a threat to the fundamental functioning of the network itself.

Some observers on Twitter have suggested that these concerns are being overstated. If profitability decreases, hobbyist miners might be tempted to stop, but major mining operations with a long-term business model are unlikely to shut down completely.

Read more: Bitcoin hashrate reaches new ATH

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