It's now 'more cost-effective to turn off the mining rig and buy Ethereum'
In case you haven't noticed, all is not well in crypto land. Bitcoin is the lowest it's been in two years(opens in new tab), and continues to drop. The CEO of Coinbase has warned of a crypto winter and laid off 1,100 staff(opens in new tab). The latest news is that the days of profitably mining Ethereum with GPUs could be behind us now as well, depending on where you live and how much you pay for electricity.
Cryptoslate(opens in new tab) has highlighted the fact that the falling Ethereum price, combined with increasing energy prices, has made it unprofitable to mine the cryptocurrency for the first time since 2020. Basically, you simply won't make money at the current price of Ethereum in most US states given the price of electricity.
To prove the point, they use an overclocked Nvidia GeForce RTX 3090(opens in new tab) capable of generating 130MH/s, which will net you something like 0.001625 ETH a day. At the time the article was written (that'll be yesterday), Ethereum was sat at $1,250, which equated to $2.03. Today Ethereum has dropped down to $1,108, so you're looking at just $1.80.
«At this point, it becomes more cost-effective to turn off the mining rig and buy Ethereum spot using the money that would otherwise be used on electricity.»
Will we see miners moving away from Ethereum? Probably not straight away, as plenty of miners are in it for the long term, but if the price drop continues, then we'd expect to see the Ethereum Network Hash Rate(opens in new tab) start to drop off even further. Right now it's sitting at the same level it was in March, though that still represents a sharp fall from its recent high back in May.
Obviously, this mainly affects small-scale miners, not the big mining farms that have
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