Analysis of Susquehanna points out that mining Ethereum is no longer profitable.
A recent analysis by the US global technology and commerce company, Susquehanna International Group, has indicated that mining Ethereum cryptocurrencies with high-power equipment is no longer profitable.
The findings of this study were reported on November 13 on the CNBC website, and they highlight a prolonged drop in the cryptocurrency market and, consequently, the decrease in associated companies due to reduced profits.
According to the Susquehanna report, the earnings of the Ethereum miners using GPU graphics card configurations were reduced to an average of US $ 150 for the month of July 2017, and in November of this year they were US $ 0. This has been attributed to the considerable decrease in the price of the ETH, which at the time of this publication is US $ 204. Recall that its historical maximum (ATH) reached it in January 2018, valued at US $ 1,350; comparing it, we have a decrease of 85%.
Although it is important to note that by the time the profits for Ethereum miners were around US $ 147, July 17, 2017, that currency is negotiated around US $ 175, a price curiously lower than the one currently cited.
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Susquehanna has explained the phenomenon through another factor that is the hashrate of the network, which decreased substantially throughout the year. As long as this value is higher, the miners will have greater advantage since they increase the opportunities to verify the block and obtain the reward for it.
On this, the semiconductor analyst of the firm, Christopher Rolland, mentioned that specifically the GPU card of the famous chip maker Nvidia “is no longer profitable.” In addition, network revenues have fallen by almost US $ 100 million each quarter.
According to a report published on Forbes on November 13, Nvidia points out that:
“We estimated very little revenue from GPU sales related to cryptography in the quarter, which coincides with management’s previous comment that they did not include any crypto contributions in their C3Q18 perspective.”
Rolland predicts that revenues will be close to zero for the next Nvidia 3Q report to be published this week.
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