Ethereum mining no longer profitable – price collapse against energy costs


from Andrew Link
In a calculation by Crypto Slate, ETH mining is no longer profitable in many locations. The fall in the share price together with the rising energy prices makes it hardly possible to dig to cover costs.

Energy prices have also soared amid Russia’s war against Ukraine, and coupled with a declining market, it is becoming increasingly unprofitable to mine Ethereum. ETH is standing just above $1,100 at press time as the cost of energy rises around the world. According to a report by Crypto Slate5, it is already no longer economically viable to mine in the USA – and that at a calculated average price of 0.22 US dollars.

With a Geforce RTX 3090 and 130 MH/s, according to the calculation, and the current Ethereum price, it is no longer possible to mine to cover costs. In most parts of the EU it has been like this for a while longer due to higher energy prices. In Germany, the EEG surcharge will no longer apply, which will ease the situation somewhat, but even then the prices here will not come close to what is called for in the USA. As a result, many had already given up their “hobby” and offered cards in large numbers on Ebay.

Crypto experts recommend mining other crypto coins, but since those are also in the red, the choice won’t be easy. Especially since the other coins will be harder to mine as the hordes descend on these alternatives. If you don’t find anything interesting to dig for, you can also work on the spot market and hope for rising prices. According to Crypto Slate, in order to mine ETH again to cover costs, the price must at least rise above 1,400 US dollars and the price of electricity must be below 0.24 US cents per kilowatt hour.

In any case, the crypto industry will experience its first big “black Friday” in 2022. So far, the market has fluctuated, sometimes sharply, but cyclically. You don’t see that this year, which is now also reflected in the upheavals. Four months after the infamous Super Bowl ad, Coinbase is laying off around 1,100 employees, or 18 percent of the workforce. The reasons for this are the upcoming recession and the goal of becoming more efficient after the rapid growth.

Source: Crypto Slate