After Bitcoin, Ethereum is the second most popular digital currency in terms of value. With the popularity and increasing value of Ethereum, it is quite clear that Ethereum mining is a trending topic. Before investing in Ethereum mining GPU or mining rig, it is advisable to know how profitable is to mine Ethereum in 2018.
Is Mining Ethereum Profitable in 2018?
Yes, it is profitable. The cryptocurrency can be easily mined with powerful GPUs. Above all, the price of Ethereum is increasing continuously.
Therefore, it is profitable to mine Ethereum in 2018.
1. Smart Contracts
The coding language of Ethereum helps programmers or developers to prepare smart contracts or programmable money.
It is the revolutionary feature in cryptocurrencies and predicts a bright future of digital currencies.
2.Proof of Stake
By making use of Proof-of-Stake, your wallet/computer stakes the coins possessed by you. For instance, if network has around 1,000 coins and you are staking 100 coins, then you will have 10 percent of coins that are being staked. That means, you will get 10% mining rewards from the Ethereum network.
Instead of solving cryptographic problems to get coins, you stake the coins in this method. However, make sure that you verify or confirm the correct transactions. In case, you confirm the wrong one or try to forge a transaction or transactions, then you will surely lose your staked coins in the network.
Benefits of Proof of Stake
The best part of Proof of Stake mining is it doesn’t make use of energy. In this mining method, you lock your coins that makes it secure and you also get to know who get the rewards. There is no need to spend money on electricity or hardware.
In order to get mining rewards, all you need to do is own coins before. Basically, with PoW (Proof-of-Work) mining, you are using electricity to earn coins and with PoS (Proof-of-Stake), you are changing coins in more coins.
Factors to Consider Before Mining Ethereum
1. Mining Difficulty
The mining rig or hardware has to solve complex mathematical problems in order to mine Ethereum. The network’s mining difficulty is basically the measurement of difficulty in solving the algorithm. Higher difficulty means less Ethereum. When more and more miners join the Ethereum network, the mining difficulty increases.
2. Hash Rate
Hash Rate is the speed with which a particular mining hardware or rig solves complex mathematical equations in order to validate or confirm a transaction. Each day, new miners are entering into the market with blaze-fast hash rates. Mining hardware that have high hashing power comes with a hefty price. Also, the high hash rate mining hardware makes use of huge sums of electricity that makes Ethereum mining costly and it can’t be afforded by everyone.
3. Electrical Costs
Different mining rig or hardware consumes different amount of electricity with different efficiency level. The basic mining rig can draw 100 W at the maximum load; however, the same can be increased to 1000 W with powerful miners.
You can make use of HashGains’ Ethereum mining calculator in order to know the estimated profit by entering different Ethereum miner details.
4. Shift to Proof-of-Stake
The Ethereum inventor, Vitalik Buterin announced this update to the Ethereum network few months back. He said that Ethereum will switch to Proof-of-Stake from Proof-of-Work in order to verify or confirm the transactions. With this system, Ethereum holders can stake coins for validation of transactions.
Apart from mining Ethereum with GPUs, you can also join a reputable Ethereum mining pool at competitive prices. There are plenty of trustworthy cryptocurrency mining companies, such as HashGains. All you have to do is sign up on their website and start mining Ethereum.
After considering all the factors, it is right to say that Ethereum mining is profitable in 2018. Such useful features of Ethereum driving its price to a highest level day by day. Benefits of Proof of Stake are pretty much clear and this mining methods will surely save electricity and minimize the hardware cost. For Ethereum mining, miners have to validate or confirm the transactions on the public distributed ledger, also called as blockchain. PoS and smart contracts will surely further increase the Ethereum value and make it highly profitable digital currency to mine. Therefore, wait no more, invest in Ethereum mining and get ready to earn profits.