The profit gained monthly from Ethereum GPU mining has drastically reduced from $150 per month in the summer of 2017 to zero in November 2018. Susquehanna, a global technology and trading firm released fresh data indicating this report.
This report contains data which shows that despite the inclusion of more productive ASIC miners which constitute a large number of the Proof-of-Work mining market, the lengthened downtrend of the cryptocurrency market is still having an adverse effect on the productivity of GPU mining of Ethereum.
Effect of the Downtrend
In August, Nvidia reported that it would pack up its cryptocurrency arm due to concerns about its extremely diminished profitability of manufacturing mining equipment in a market virtually overshadowed by ASIC miners. Very good examples of these ASIC miners are the Antminer series produced by Bitmain.
As the situation persists, semiconductor analyst at Susquehanna- Christopher Rolland, as quoted in a recent report released by CNBC stated that the revenue of the company which relates to cryptocurrency would remain close to zero in the third quarter of 2018.
Before now, the mining of Ethereum with GPU mining kits was an alternative source of income with investors gaining profits up to $150 per mining kit. This venture posed no stringent rules or conditions for entry and as such was found delightful by crypto lovers and small-scale entrepreneurs because it enabled them to set up mining operations on a small scale in everyday spaces. This was done in order to capitalize on the boom in the crypto market at the time.
This situation, however, has not remained the same owing to the profitability of GPU mining falling to the barest minimum in November 2018 which is zero. On Tuesday, in a notice to its clients, Susquehanna pointed out that the situation at hand was brought about as a result of the amalgamation of distinct risk elements which of course includes the general downtrend in the crypto market which beheld the fall of Ethereum’s price by over 70% from its all-time high in December 2017 and the reducing competition of GPU miners due to the improved efficiency of ASIC miners.
ASIC Manufacturing Takes the Lead while Nvidia Drops Out, Bleeding
The major market player who took a great hit following the outturn of events from Ethereum’s bull-run to its bearing movement this year is none other than Nvidia. Their share price skyrocketed during this period as investors were hurriedly acquiring for themselves a piece of Nvidia’s GPU for mining purposes.
Since the beginning of the bear market, lots of mining pools have been put out of businesses due to low profitability while some remained strong and hoped to squeeze out as much efficiency as they could out of their machines just to stay afloat.
ASIC capitalized on this, releasing the Antminer series leaving the GPU miners in the dust and technically inefficient when it comes to mining. Due to Nvidia’s exposure to the GPU market and despite it pulling out, it continues to bleed as its stocks have dropped below 23% over the past month.