Electricity cost caught up to mining profits, what else can be done?

jang430jang430 Member Posts: 93
Hi. With the recent drop of Eth to 500+, Potential earnings will either be 0, or some losses due to electricity bill. Am struggling to justify continuous operation. Should I stop? Or can I change to other crypto? It seems from whattomine, eth is still the most profitable.

Comments

  • masterofminingmasterofmining Member Posts: 1
    I can help you but is a very difficult to respond you here, Contact me : [email protected]
  • SaphSaph Member Posts: 72
    Depends on your situation, if you need the money from the eth stop mining.

    If you can afford to hold what you mine and cash out later, keep mining.
  • jang430jang430 Member Posts: 93
    @Saph , any other alternative to mining eth? Then convert to eth? Is there a scenario wherein you mine another crypto, getting more output, (albeit lower price), then convert to eth, and get more eth?
  • Ericjh801Ericjh801 Utah, USAMember Posts: 371 ✭✭
    There isn't a scenario like that. whattomine.com ETH is usually the #1 for profit. Though sometimes the smaller coins will surpass it, so you could speculate and mine some of the lesser known ones and hope for a spike to trade for ETH.
  • jamesplacejamesplace Member Posts: 2
    At such moments, I stop mining and buy Ether in the exchanger (I use localbitcoins.com), it's much more profitable. As soon as the price of the ether is higher, I will continue to mining.
  • asusrigasusrig Member Posts: 141

    At such moments, I stop mining and buy Ether in the exchanger (I use localbitcoins.com), it's much more profitable. As soon as the price of the ether is higher, I will continue to mining.

    I agree if ETH was $300 or less I would buy it. At $500 I think it is still worth it to mine. At around $250-$300 my electrical cost would equal ETH yield and in that case it would be worth shutting down the rigs to reduce stress on the hardware and just buy it. Of course if difficulty keeps increasing then even ETH at $500 would end up a loss due to electrical costs exceeding the value of the yield. In that case you might as well take the money you would have spent on electricity and buy ETH with it.
  • SaphSaph Member Posts: 72
    How expensive is electricity where you guys live?
  • Ericjh801Ericjh801 Utah, USAMember Posts: 371 ✭✭
    With taxes/etc it's 12.3c KWH and summer rate (May-Sept) is 16.8 KWH. Looking to move operation to a industrial/warehouse if I can. Costs there are 10.1c Summer, 9.4c winter, if I can use "enough" energy (over 35KW) then I can get to summer 6.5c and winter 5.6c KWH.

    Just have to find a place with the right power requirements and rent prices. I have a business with inventory also, so I can always use the space :)

    Might rent out space to other miners to with the cheaper prices and a monthly fee or something to help recover some of the rent cost.
  • JukeboxJukebox Member Posts: 640 ✭✭✭
    jang430 said:

    Hi. With the recent drop of Eth to 500+, Potential earnings will either be 0, or some losses due to electricity bill. Am struggling to justify continuous operation. Should I stop? Or can I change to other crypto? It seems from whattomine, eth is still the most profitable.

    Do you pay 0.37 USD/kw?
  • techtottechtot Member Posts: 339 ✭✭✭
    If look @ the cost per card, a 30mh card (1070,580) will take 8 months to get even $200 back on that card, at today's difficulty, so you have to be confident that the price of ether will go up.

    To answer your question though, I believe coins like Vertcoin, EtherClassic,have a better chance for profitability in the future, and you can make coin(s) daily. Vertcoin, and other coins can also use less electricity per machine than ether if you want to mine using less watts.
  • glenn_txglenn_tx Member Posts: 67
    Since you can write off the costs of mining against the profits of mining. So, even if you are netting out even, it's technically cheaper than buying from a source that charges 2-5%. Also, mining ETH is a bit more "private" than buying it from Coinbase/Gemini, etc. as it's not showing up in your checking account. If you think the dip in ETH is temporary, keep mining.

    On the other hand, there is a definate end to POW mining coming soon. Once that happens, all those GPUs that are so valuable and in-demand right now will be absolutely worthless. If you have the time and effort, I would say the most profitable option is to begin selling your equipment, before the hardware price "crash" hits. and use those proceeds to buy ETH directly at current prices. In the long term, I think this is the best option.

    For me, my mining rigs are almost breaking even and humming along w minimal effort. Also, I simply don't have the time and energy to start selling my hardware on e-bay. I really should be, but I have a "real" job that take priority.

    I say assess your personal situation and decide which is more attractive to you. Hobby vs Profit.
  • glenn_txglenn_tx Member Posts: 67
    You can write off the costs of mining against the profits of mining. So, even if you are netting out even, it's technically cheaper than buying from a source that charges 2-5%. Also, mining ETH is a bit more "private" than buying it from Coinbase/Gemini, etc. as it's not showing up in your checking account. If you think the dip in ETH is temporary, keep mining.

    On the other hand, there is a definite end to POW mining coming soon. Once that happens, all those GPUs that are so valuable and in-demand right now will be absolutely worthless. If you have the time and effort, I would say the most profitable option is to begin selling your equipment, before the hardware price "crash" hits. and use those proceeds to buy ETH directly at current prices. In the long term, I think this is the best option.

    For me, my mining rigs are almost breaking even and humming along w minimal effort, but I simply don't have the time and energy to start selling my hardware on e-bay. I really should be, but I have a "real" job that take priority.

    You have to decide for yourself, which is more attractive. Hobby vs Profit.
  • Ericjh801Ericjh801 Utah, USAMember Posts: 371 ✭✭
    Just because ETH goes to POW doesn't mean GPU mining is dead though. You can start mining a ton of different coins after that with close to the same profitability as ETH. Prices of GPU's are coming back down so that boat is slowly passing by.
  • techtottechtot Member Posts: 339 ✭✭✭
    edited March 2018
    I agree, there are plenty of other coins to mine after ether goes away. Cards will never become "worthless." Just look at Zcash, Monero ,eth classic, and Vertcoin. There will always be a demand from now on to use cards to produce more coin. It may even help the price of some of the other coins when ether goes POS.

    Even the old 750 TI still can fetch almost $100 on ebay. Will you get back the $500 for a gtx 1070 which you over paid ? hell no, but you will probably get at least $250.
  • Ericjh801Ericjh801 Utah, USAMember Posts: 371 ✭✭
    I agree. 50% return on original MSP is the most likely scenario. Just because you don't want to mine, doesn't mean there aren't thousands of other who want to still do it.
  • cidmocidmo Member Posts: 446 ✭✭✭
    i only have 2 rigs on eth right now
    everything else is on neo or algo switching
    everything is speculative mining at this point tho
    sure we are in profit still but not much
  • jang430jang430 Member Posts: 93
    Jukebox said:

    jang430 said:

    Hi. With the recent drop of Eth to 500+, Potential earnings will either be 0, or some losses due to electricity bill. Am struggling to justify continuous operation. Should I stop? Or can I change to other crypto? It seems from whattomine, eth is still the most profitable.

    Do you pay 0.37 USD/kw?
    I pay around roughly .20 USD/ kw
  • Ericjh801Ericjh801 Utah, USAMember Posts: 371 ✭✭
    I pay .12c during winter and .16 during summer. Moving operations to a business setting soon i hope where the rates are a bit cheaper. Hopefully offering hosting to a few smaller miners out there.
  • CaliciteCalicite Member Posts: 44
    edited April 2018
    When ETH will go POS gpu mining will be dead - non of the coin will be profitable anymore, because very very massive hash rate will migrate to other coins....... so we are doomed!

    Edit:
    If ETH will fork against ASIC it can be one year salvation for miners before going POS
    https://techcrunch.com/2018/03/27/ethereum-has-the-asic-blues/

    Ask ETH Devs if you want the fork against ASIC. I'm 100% yes, because ASIC and Bitmain are just pure evil...
    https://www.reddit.com/r/ethereum/comments/87ucsk/would_you_support_a_hard_fork_that_obsceletes_eth/

    OR VOTE HERE:
    https://github.com/ethereum/EIPs/issues/958
    Post edited by Calicite on
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