Cryptocurrency mining has seen a marked decline in popularity in recent months as the value of currencies fell.
Many people continue to mine and earn a profit, however, and if the price of cryptocurrency rises again they could be set to cash in big returns.
Buying a mining rig now may be a big mistake, though, as it will take extremely long to pay off at current market values.
Ethereum remains one of the most popular cryptocurrencies to mine, thanks to the ability to mine using consumer graphics cards.
At one point, it was almost impossible to find a graphics card in South Africa due to massive demand for the hardware – but this situation has started to correct itself as mining profitability fell.
Ethereum miners should also take note of upcoming changes to the blockchain and its mining composition, which could affect the viability of mining using consumer GPUs.
Problems for ETH miners
In 2018, one of the biggest topics within the Ethereum community has been the development of an ASIC miner for Ethereum by Bitmain.
This hardware promises higher efficiency than graphics card rigs at a lower price, and could upset the profitability of mining rigs made from consumer GPUs.
Additionally, Ethereum is continuing its move towards a proof-of-stake (PoS) consensus system, which involves validators staking currency to vote on blocks instead of hardware-backed verification.
It will be a long time before this solution is fully implemented, but the Ethereum blockchain may see incremental changes which could decrease the profitability of mining as it moves towards PoS.
Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!