The work of the miners is coming to an end.
According to analysis of bear market and decrease Hashrates means that Ethereum mining is no longer profitable. Mining Ethereum (ETH) using a graphics processing unit (GPU) is no longer profitable, according to an analysis of the US company Susquehanna, one of the largest trade and technology companies in the world.
CNBC reported on November 13 on the findings of the aforementioned Susquehanna, which point to the prolonged fall in the crypto-markets and the decrease in the hashrates of the network as reasons for the decrease in profits. In the Susquehanna analysis, the monthly earnings of ETH miners using GPU-based configurations reached a round of $ 0 as of November 1 of this year, down from almost $ 150 in July of 2017.
Related News:
Susquehanna points out the decrease in Ethereum’s price as an important factor, with the alternative currency currently trading at $ 204, almost 85 percent below its historical high of around $ 1 350 in mid-January 2018. However, on July 17, 2017, when the Susquehanna figures indicate a profit of $ 147 for miners who depend on the GPU, the asset was trading around $ 175, slightly lower than today’s valuation. To explain this pattern, Susquehanna analyzed a second factor: the hashrate of the Ethereum network, which fell substantially in 2018. A higher hashrate index is more advantageous for the miners, since it increases their opportunity to calculate the next block and be remunerated in ETH.
Christopher Rolland, semiconductor analyst at Susquehanna, told CNBC that, in this context, the use of GPU, the flagship card of microchip manufacturer Nvidia, “is no longer profitable,” and points out that the income derived from the crypts of the company have dropped around $ 100 million quarter after quarter. It predicts that this revenue would probably be “close to zero” in the next Nvidia third quarter report, which will be published this week: “We estimate very little revenue from GPUs sales related to the crypts in the quarter, according to management’s previous comment, that they were not including any crypt contributions in their perspectives for the third quarter of 2018.”
The prices of cryptocurrencies continue to fall, which means that they are no longer viable to extract in GPU. As reported yesterday, the experts of the Trefis analysis firm have predicted that Nvidia’s total revenues in the third quarter will increase, however, like Susquehanna, they forecast that the sales of the activities related to the cryptocurrency will remain in trend to the bottom.
In August, Nvidia shares fell amid a decline in digital currency mining, as crypts markets suffered a decline. Ethereum’s value fell to $ 256, down from its historic high of $ 1,250 in January. Bitcoin fell to less than $ 6,000 on Wednesday, well below its late-year high of $ 19,000. A 79 percent devaluation is not the worst of Ethereum’s problems.
The currency faces strong inflation due to conversions to other cryptocurrencies or the dollar. At its highest point, ETH had 32 percent of all the market capital of cryptocurrencies, second only to BTC by 39 percent. Now ETH only has 14 percent.