Is Bitcoin, Ethereum Mining Still Profitable?

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Summary

Morgan Stanley estimated in April that under a price of $8,600 per bitcoin, mining farms would not break even in two years. Bitcoin Mining estimate by Morgan Stanley. That might suggest bitcoin miners are too now at risk of being at a loss. That means if your mining gear was earning $100 in December, it now earns only $2.5, showing just how brutal the mining business can be. Bitmain’s two pools, instead, have taken those top positions, potentially because mining with your own manufacturing gear is still just about profitable.

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Ethereum’s price has fallen 80% in the past eight months, while its hashrate has tripled to now 300 trillion per second.

That means if your mining gear was earning $100 in December, it now earns only $2.5, showing just how brutal the mining business can be.

However, much of the hashrate rise was probably due to asics, which for eth are only a few times more efficient than GPUs. So with new hardware they might perhaps be keeping up, but at a price of just $300 for one eth, some of them might be going under.

According to a report on eth mining this March when the hashrate was at around current levels, a 94MH/s mining rig was earning $24 per week at the then prices of around $600.

At today’s prices that would be $12. Their electricity cost was just $10, leaving still a profit of $2, but if we account for the hardware costs then it is probably at a loss.

Morgan...

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