Mining Ethereum is a business. The miners mine Ethereum to earn money. This mining of Ethereum must be a profitable business proposition. Otherwise, the miners will lose their interests in mining Ethereum. So, all measures necessary to make Ethereum mining a profitable business must be adopted by the miner with great caution. Ethereum Mining Profitability is a serious subject and must be dealt with appropriate technical expertise.

The increase in difficulty in Ethereum mining considerably reduces the profitability of mining Ethereum. The profitability becomes zero at a given point of mining. The miner may wonder about the worth of her/his investment in purchasing an Ethereum mining rig and the expenses incurred in electricity in a month. The miner may also think about purchasing Ethereum instead of mining, as purchasing Ethereum seems to be a more profitable option.

The rise in price of Ethereum is leading more and more people towards mining Ethereum. Ethereum has registered about 20 times rise in price this year.

About Ethereum:


Ethereum is an open software platform. This software platform is based on the technology of blockchain. This software platform enables the developers of applications to build and deploy applications, which are decentralized in nature.

Ethereum is also a network. It is distributed public blockchain network. This Ethereum blockchain is capable of supporting multiple types of decentralized applications.

Ethereum is the network, where as Ether is the token. Ether fuels Ethereum. No one can trade Ethereum. One can trade Ether. There is ups and downs in price of Ether. Ethereum has many real-life utility services such as, health care, banking or supply chain. The increase in number of building and deploying decentralised applications on Ethereum platform results in increase in price of Ether, as the network needs more fuel to run.

Mining Ethereum:


Mining Ethereum is one option to get Ether apart from getting Ether from crypto currency exchanges, in exchange of regular FIAT currency. Mining is done by providing solutions to complex mathematical puzzles. The miner who is able to provide a solution to the puzzle, receives a reward with a block of Ether (Proof of Work), after the issuers verify the provided solution by the miner, to the puzzle.

Factors influencing Ethereum Mining Profitability:

1. Hash Rate:

Hash is a mathematical problem the miner needs to solve. The speed or the rate at which the miner solves the hashes is known as hash rate. The more is the hash rate, the more is the profit in mining. A beginner may be slow at first, affecting the Ethereum mining profitability. The mining machine’s efficiency is also a major factor in improving hash rate. The miners must use latest versions of Graphics Processing Units or Application Specified Integrated Circuits (ASIC) to have a higher hash rate, to have higher rate of Ethereum mining profitability.

2.Mining Difficulty:

The mining difficulty increases with improvement in hash rate of the computer. The increase in number of Ethereum miners also results in increase in mining difficulty. This increase in difficulty to solve a mathematical problem by the miner may reduce the profitability in Ethereum mining.

3. Electricity:

The mining machines, which are powerful computers, require high amount of power to run and solve the complex mathematical problems for mining Ether. This high cost in consumption in electricity results into reduction of Ethereum mining profitability.

Looking into these factors, measures to increase hash rate, to solve mining difficulties faster and to reduce cost in electricity consumption, must be adopted by the miner to increase Ethereum Mining Profitability.

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