Is it worth mining Ethereum in 2017?

A group of my friends have started to get into Cryptocurrencies. We looked at buy on exchanges like Independent Reserve where you can trade Bitcoin and Ethereum.

If you like you can buy cryptocurrencies out right from a company like coinbase.com. It takes all of 5 minutes to setup. What is great, is that if you sign up using this link

https://www.coinbase.com/join/593f359c2c1f160080e5ac06 both you and I will receive $10 USD worth of Bitcoin.

Anyway, on to the analysis…

Based on a hardware cost of $2700 USD and cost of Electricity of 40c per kW/H we can see that there is no profit where ETH is priced at $221

You can check this calculation here CryptoCompare.com

ETH calcuation

The kW/h is in USD because the price per ETH is in USD too.  At the on peak rate of 40c per kW/H, there is no profit be made

On the other hand…

Off peak is a different situation

You can check this calculation here CryptoCompare.com

etheruem calculation

So if we limit our mining to off peak and constantly find cheaper electricity, maybe it’s viable.
Things to consider

  1. We can’t mine 24 hours because of off peak times
  2. Hardware costs of ~$2700 USD
  3. The current price of ETH. If it goes up so do the profits…
  4. The complexity of mining ETH. The more of a currency is mined the longer it will take to mine the coin.
  5. You can actually mine two coins at once

Let’s go the other way

$2700 USD can buy ~12 ETH at $221 USD, which is almost the same as if you had mined the whole year. I suppose after a year you are better off and you get to mine two coins and can always mine other coins once you have a rig.

Thoughts?

 

 

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