Since Ethereum price is around $ 750, you may wonder if it's worth mining or not. Similar to Bitcoin, Ethereum is a proof of work coin that uses miners to validate network transactions. Profitability of mining varies from person to person and changes over time - usually less profitable when the coin ripens.
There are three important factors to consider when you find out if Ethereum will be profitable to you:
• Mining difficulty
• Hash rate
• Electrical costs
Mining difficulty
Your GPU’s must solve a mathematical algorithm to mine Ethereum. The difficulty of network mining is to measure how difficult this algorithm is to be solved. The greater the difficulty, the less Ethereum you get for each unit of energy that the GPU of your mining equipment expends. As more miners join the network, this difficulty increases.
Hash rate
The hash rate is the rate at which your mining rig can solve the mathematical algorithm needed to validate a transaction. New miners are constantly entering the market at a faster and faster rate of hash.
Electrical costs
Each mining configuration uses a different amount of electricity. Cheapest miners typically attract ~ 100 watts at maximum load, but this can increase to over 1000 watts with more powerful miners. You will want to calculate your energy costs per day and compare it to the estimated return per day when you choose a miner.
