Is Ethereum Mining Profitable in 2018?

In this article we will try to figure out the profitability of Ethereum mining
26 January 2018   11159

As the price of Ethereum is around $1000 you may be wondering to yourself whether it’s worthwhile to mine ETH. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time – usually becoming less profitable as the coin matures.

In this article we will try to figure out the profitability of Ethereum mining. There are three important factors to consider:

  • Mining difficulty
  • Hash rate
  • Electrical costs

Mining difficulty

In a word, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network – the difficulty increases.

The Ethereum mining difficulty had been steadily increasing since the beginning of December with 1,500TH  to ~2,500H.

Ethereum Block Difficulty GrowthEtherscan Ethereum Block Difficulty Growth Chart

The daily block rewards of ETH have hardly changed since December and it is currently ~20.339 ETH.

Ethereum Block Rewards ChartEtherscan Ethereum Block Rewards Chart

Hashrate

The hashrate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction.

Miners with a high hashrate usually come with a high price tag, but they also typically use more electricity as they operate which could further drive your costs up.

Average hashrate of ethereum network has increased since December from ~125492GH/s to ~203394GH/s, which is the highest rate of all time at the moment.

Ethereum Network HashRate Growth RateEtherscan Ethereum Network HashRate Growth Rate

Electrical costs

Each mining rig works at a different level of efficiency and uses a variable amount of electricity. On the low end, miners typically draw ~100 W at their maximum load, but this can increase up to over 1000 W with more powerful and less efficient miners.

There are several services that allow you to calculate your power cost per day and compare that to the estimated return per day when picking out a miner:

  • CryptoCompare
  • My Crypto Buddy
  • Coin Warz
  • What To Mine

The switch to proof-of-stake

The creator of Ethereum Vitalik Buterin, announced last year that the Ethereum network is going to switch from a proof-of-work to a proof-of-stake framework to confirm transactions. With a proof-of-stake system, holders of Ethereum stake coins by putting them up as collateral to validate transactions.

The transition to the PoS-algorithm will allow to reduce energy costs as much as possible without requiring real resources, since it will not need large computing powers, and hence users with equipment. This means that miners will soon be obsolete. But while ETH mining remains traditional, ordinary users still have a chance to get a rapidly developing cryptocurrency on their wallet.

To sum up, Ethereum mining is still profitable, but there are several other coins available for mining, like Monero, that may be a better choice for you depending on your purposes.

"This article is originally published at CoinCentral.com"

 

Crypto-mining malware has infected 23% of global organizations

An increasing threat gets challenging as the malware is put hidden in websites
19 February 2018   62

Check Point alarms the world of a steadily growing threat of crypto-mining malware. A leading provider of cyber security globally has compiled a list of top 10 prevalent threats. The first is Coinhive that during January 2018 has affected approximately 23 percent of organizations worldwide. Using Javascript the malware is implanted into website and with each user browsing the dangerous code drains users’ CPU and GPU resources to mine Monero cryptocurrency with their approval.

Over the past three months crypto-mining malware has steadily become an increasing threat to organizations, as criminals have found it to be a lucrative revenue stream

 

Maya Horowitz

Threat Intelligence Group Manager, Check Point

Ranked second is a malware Fireball. it is reported that as much as 21% of those organizations infected by the malware are yet to deal with the issue. The most serious point about Fireball is that the malware has a real potential to be transformed into a fully-fledged malware downloader capable of executing any code on the victim’s machine. The third rank was given to Rig Exploit Kit with 17% affected organizations globally.

As the popularity of the virtual currencies grows, so does the distribution was and methods of the associated malware. Usually, the exploit is injected in popular media websites, as reported by Cyberscoop of media outlet Salon using its own ad-blocker as a hidden tool for mining Monero. On top of that, last week Kaspersky Lab. reported of a zero-day vulnerability of Telegram desktop client. The vulnerability makes users to download a hidden malware, that potentially can be a mining code. This threat is reported to be active since March, 2017.

Another notable instance of an infection was reported by UK about a plugin for blind people Browsealoud.