Mining Ethereum in 2020: Is it still profitable?

Mining Ethereum: Is it profitable? We will try to answer it here.

Cryptocurrency mining is an extremely dynamic industry, with constant updates to hardware, software, pools, prices, difficulties and profitability. The mining environment is ever more competitive, making it more difficult to calculate profitability.

But what if you are not only interested in the bitcoin mining? For example, Ethereum fans might wonder if it is still possible to get into Ethereum mining profitably in 2020?

Well, we break it all down for you below...

What about Ethereum mining?

After the introduction of Bitcoin as the first cryptocurrency, many others have cropped up over the years. Ethereum is a decentralized cryptocurrency that is widely considered an improvement on bitcoin. Actually, it's a little more complicated than that; Ethereum allows you to do more things than Bitcoin. That said, the'Ethereum is of great interest to cryptocurrency miners because it is the second largest market capitalization after bitcoin.

Ethereum started as a low-key coin and struggled to gain a strong community at first. But with the media hype of ICO, the price of Ether started at the end of 2015.

This allowed Ethereum to become the second largest liquid asset in Crypto. With fame comes investment and the same goes for Ethereum mining. Seeing the price of Ethereum reach as high as $1, the coin was quickly adopted by many amateur miners who wanted to take advantage of the rise.

Ethereum, by nature, is the second most liquid asset and can easily be traded on all Crypto exchanges. It also has base pairs with many ERC20 tokens. The most effective use ofEthereum comes from companies looking to raise funds for their projects. This coin has attracted the interest of many crypto enthusiasts and has served as a source of funding for several international trading organizations.

However, with the advent of the crypto market, is it still profitable to get into Ethereum mining in 2019? What will it be like in 2020? I know you're eager to know the answer. But before we continue, let's talk a little more about Ethereum mining.

Steps for mining Ethereum:

Unlike Bitcoin, Ethereum does not run on the Sha-256 mining algorithm.

This means you need to buy a new type of miner to mine Ethereum these days.

However, mining Ethereum with a large GPU farm would still be profitable.

If you have access to cheap electricity as is the case with crypto miners in Egypt, then, it would be possible to mine ethereuml and even other cryptocurrencies.

1/ Choose your mining equipment

Ethereum uses the Ethash mining algorithm to power its network. Historically, many companies ASIC hardware such as Bitfury and Bitmain have been reluctant to produce Ethereum mining machines.

But with the popularity of the coin, the shift from producing Bitcoin ASIC miners to Ethereum ASIC has also changed. The first Ethereum ASIC miner was available on the market in late 2017.

It was the Bitmain Antminer G2 with a hash rate of 220 Mh/s and a consumption of 1200W. After that, many Ethereum ASIC miners flooded the market. Among them was the Innosilicon A10 ETHMaster, which today still turns out to be the most cost-effective.

The hardware is manufactured by Innosilicon Company, a fast-growing brand in the mining industry, which provides stiff competition to Bitmain and Bitfury.

This Ethereum miner provides 485 MH/s and can generate revenue of $6,34 per day. This is because the machine only uses 850W of power, making it the most efficient mining hardware in the industry.

However, the price of this machine is around $5500, which is too much for an amateur miner. And many of them might just be looking for a cheaper option.

2/ Choose a mining epool

Once you have chosen the Ethereum ASIC miner or GPU mining rig, you can move on to the next option.

This is the choice between Ethereum mining pools. Of course, you're not going to power up your machines when you're mining solo unless you have free electricity. Even then, it can take an average miner forever to find a block and reap the rewards.

There are several starting pools, such as Nanopool, Etheremine and Sparkpool. But before you jump into a random game, make sure you analyze most of them properly and compare their pool fees. Some pools charge extravagant fees that will reduce profitability in the long run.

3/ Choose Ethereum mining software

At the moment, you already have Ethereum mining hardware and a pool.

But you still lack the software to act as an intermediary between the hardware and the mining pool. There are several Ethereum mining software you can use depending on your operating system.

—> If you use Windows, Ethminer or Dualminer would fit perfectly.

In fact, Ethminer has several features that most other software lacks. This includes OpenCL mining, Vida CUDA, and DAG generation on GPU. The software is also available for Linux. That's interesting!

Is it profitable to mine Ethereum in 2020?

For any investor or even amateur miners, the return on investment within a reasonable time frame is the most determining factor for their purchasing decision. You may already have all the hardware needed for Ethereum mining, but how confident are you about profitability?

At the height of the run, an average Ethereum miner was making a profit of around $0,2 per 1MH/s.

This may seem quite low, but typically miners have high-end mining rigs with dozens of GPUs or ASICs to launch new Ethereum into the market. These mining rigs usually have a capacity of 25 MH/s and can generate a decent profit.

With the crypto bear market developing for many years, many miners have turned off their machines and moved to other methods of making cryptocurrencies, such as Staking or Masternodes. But this situation can be advantageous for many new investors looking to opt for Ethereum.

Let's use an Ethereum mining calculator to see how much an average miner can earn using Ethash mining rigs.

According to the calculations and according to the current market situation, you can easily make around 89 USD profit per month using Innosilicon A10 ETHMaster ASIC miner. Provided that your average electricity cost is 0,12 KWh. But it is a very expensive miner and most of us might not be able to get our hands on it.

So let's take Bitmain Antminer E3 as our next example. With an average hash rate of 200 MH/s and a power consumption of 740W, you can easily earn around $3,5 with this machine.

That might seem pretty low, but the machine is only available for $750. You can also get a cheaper, lightly used one, which increases your chances of achieving a return on investment within 7-8 months.

For many beginners, this might not seem appealing. But if you're a strong believer in the technology and concept behind Ethereum, holding on to your coins until the next bull run might just be the ideal strategy moving forward.

Additionally, many other parts such as EOS, WAVES et TRON have gone to considerable lengths to capture the ICO market from Ethereum and have largely failed. Over 80% of tokens are still powered on Ethereum Blockchain, making it the most widely used technology for decentralized applications and token creation.

Conclusion: Mining Ethereum is a royal path to follow?

Mining Ethereum can still be profitable if you have access to a cheap energy resource. In fact, it may also prove to be a long-term investment for many miners as the crypto market consolidates at the current price level.

Additionally, many new mining operators can take advantage of the reduced network access rate and the availability of cheap mining hardware. If you have some spare cash, it's best to get yourself an efficient Ethereum mining rig and work your way to a passive Crypto income.

Warning:

This is a post that explains how to mineEthereum informatively.

All calculations above are based on a total network transfer rate of 142450 GH/s with a block premium of 2 ETH.

The price of Ethereum at the time of calculation was set at $140. Cryptocurrency and Ethereum block price can change significantly overtime, which may lead to losses for investors. So, in case of any loss or damage with mining ethereum, our blog or editor will not be held responsible.

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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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