Ethereum Gold Rush Wanes Spil Price Plummets, Mining Difficulty Skyrockets
It shows up the latest gold rush surrounding Ethereum is coming to an end. The price of Ether dipped below $200, and the mining difficulty level hopped by almost 20%. If you’re getting into Ethereum mining now, it’s very likely too late.
Cryptocurrency (also known spil crypto coins or altcoins) found its way back into the public eye ter latest months when Ethereum’s value spiked dramatically: At the end of 2016, Ethereum wasgoed worth $8.22 vanaf coin, but by February 28, 2018, the value of Ether doubled to $16.05. On March 6, Ether peaked at $Nineteen.45, and Ten days zometeen the value more than doubled again, to $43.87. By the end of April, the value of Ether coins began rising again, and by May 6, Ether wasgoed trading for $94.81.
This is around the time that people outside of the crypto-mining toneel embarked to pay attention, and many hopped into the mining craze–so much so that the worldwide inventory of GPUs wasgoed all but wiped out. Good luck finding an AMD RX 570 or 580 on the shelf, and if you toebijten to find a GTX 1060 or 1070, the price will likely be jacked up through the roof.
Mining isn’t the only craze around Ether. People are buying the coin on exchange markets such spil Coinbase.com to get te on the investment chance. Spil a result, the price of Ether continued to skyrocket through May and well into June. On May 25, the value reached $195.27. The price dipped slightly the following day, but it rallied again and reached the all-time high value of $380.28 on June 13.
Following that peak, the price of Ether began to druppel, and it hasn’t yet begun to recover. At press time, the price is sitting at $198.75—its lowest point since March 29.
Ethereum is ter no way dead, but the chance to make a cool living from a mining equipment ter your basement is coming to an end. But how can that be? If people were able to make money when Ether wasgoed trading at around $Ten, how could $200 vanaf coin be unprofitable? The response is that the mining difficulty has enlargened at a staggering rate ter the very first half of 2018.
Spil Ethereum gains popularity and more mining equipments come online, the total number of processing power on the Ethereum network increases. Spil the network’s capabilities increase, the Ethereum blockchain adjusts the difficulty to keep the rate of processed blocks somewhat onveranderlijk. If it takes less than Ten seconds for the network to find a block, the difficulty increases. Should the network’s hash rate druppel such that it takes longer than 20 seconds to find the next block, the difficulty gets lowered. And blocks uncovered within Ten to Nineteen seconds have no effect on the mining difficulty.
The unexpected influx of Ethereum miners, which wasgoed spurred by the media response to the value increases, caused a massive increase te mining power and, ter turn, phat increases te difficulty. Across the lifespan of Ethereum, the difficulty rating has doubled every six months, but that all switched this year. Te mid-March, when the price of Ether commenced to see significant gains, the Ethereum network required less than 200 THash/s (Terrahash vanaf 2nd) to uncover a block. The enlargened value of Ether coins encouraged seasoned miners to dual down on Ethereum, which ter turn caused rapid difficulty increases. By May 1, the Ethereum mining difficulty enlargened to 350 THash/s, and it surpassed 400 THash/s on May 13.
Since then, the Ethereum mining difficulty rating has steadily enlargened. For a time, the price of Ether kept well ahead of the difficulty increase, but the profit margins are getting slimmer by the day. On May 29, the Ethereum difficulty level surpassed 500 THash/s for the very first time, but on July Two, the network requirements rose past 1,000 THash/s (1 Petahash/s).
This week, the Ethereum network wasgoed klapper with the largest difficulty increase ter its history. The difficulty rating leaped from 1.066 PHashps to 1.228 PHashps te less than 48 hours. Duo that with the plummeting value of Ether, and it’s effortless to see the bottom ripping off out of Ethereum mining profitability. If you’ve recently invested ter hardware with the expectation of paying it off quickly and letting the specie roll te, you might be te for a verrassing. And if you fell for a scalper’s trapje and paid above market value for your mining system, you should most likely commence looking at other coins to help pay off your investment.
CoinWarz.com offers a difficulty chart that you can use to track the switches ter the network’s hashrate requirements.
Inescapable End To Ethereum Mining
If you already have an Ethereum mining system running, it’s very likely worth continuing to mine for now, but your time is coming to an end. Even if the difficulty drops (which would toebijten if a significant number of miners switch to a fresh coin), there’s still a finite window te which you can mine Ether coins. The Ethereum network will eventually switch from a Proof-of-Work (PoW) prototype (mining) to a Proof-of-Work/Proof-of-Stake (PoS) specimen. The PoS monster would still pay participants a share of Ether, but it would be a percentage of the transaction rather than fresh currency. It’s somewhat like a dividend payment on a stock investment.
No one knows for sure when Ethereum will switch to the PoS proefje, but expect the switch to start te the next duo months. Te May, one of the developers involved te Ethereum’s creation, Filippo Merli, published an implementation guide that explains how the switch would occur. The transition will toebijten te two stages–a hybrid Pow/PoS proefje followed by a finish switch overheen to PoS. It’s only a matter of time before Ethereum mining is no longer viable, and if the price resumes to druppel, that time may come sooner than straks.