Is the prospect of making money mining ethereum disappearing into thin air?

Wow. It has been a while, a long while since I last wrote on CoinTalent, and well, a lot has changed. Our last post was back in September of 2014 when Bitcoin was $465 and the thought of it exceeding $1,000 seemed like a complete pipe dream. Fast-forward to today and well, in case you missed the memo, Bitcoin has been on an absolute rampage and currently sits at $2,595.

I personally made an ROI of over 100% on my Bitcoin investments, but I bought in the low two hundreds and sold in the high four hundreds, so…while it’s a great ROI, I’m really kicking myself for selling when I did. Of course I’m not kicking myself as much as the guy who threw out a hard drive with $7.5M in Bitcoin on it so I guess it could be worse.

All that being said, I’ve decided to get back into the cryptocurrency game because I honestly feel like I’m missing out, and I probably am. However, I’m going to take a break from Bitcoin and start looking into other Cryptocurrencies since I do believe that a lot of good opportunities are still out there. The first currency I’ll be looking at is Ethereum and I’m going to start by turning my VR PC into a mining rig to see how it does and to learn more about Ethereum and the Ethereum mining process.

ethereum mining

Since I know absolutely nothing about Ethereum mining I’m turning to this how to on Reddit – Ethereum Mining 101 to learn the basics. If you look at my last post here on CoinTalent you know that I felt the ship really sailed for Bitcoin miners years ago so I’m not incredibly optimistic about Ethereum mining. Honestly I think that mining gets a lot of hype because, not surprisingly, people love the idea of being able to print money. Here’s the catch, if you could really print money, and do so easily, everyone would be doing it.

Instead what I see is people making money mining when they’re super early, so early that nobody is talking about it, there are no read me’s online about how to get started, it’s a fresh slate. That’s when there’s a real opportunity to mine. Once the front page of Google is full of articles on how to get started mining, and especially if the first article is from the Huffington Post, it’s safe to say, the word is out and the real opportunity is gone.

Here’s what you get when you do a Google search for Ethereum mining:

ethereum-miningHere’s the problem with mining once a cryptocurrency gets somewhat popular. The difficulty goes up a lot faster meaning that awesome rig and those calculations you did a few months ago, aren’t going to lead to the same results a few months from now. There’s an interesting thread on Reddit about this exact issue from a new Ethereum miner that is running into this right now:

I started mining at ethermine.org two weeks ago with 4 1070’s. At this time the estimated earnings nearly touched 2 eth pr month. Now the estimate has sunk to 1.5. Yes – the estimate varies depending on current average hashrate, but the trend is very clear. I wonder how it will continue to decrease, will the speed of the decrease slow down when it get’s more and more difficult? I sure hope so! If I do bad math and pretend this trend is going in straight line, and not a curve, the estimates will decrease to 0 eth in six more weeks!

The mining calculator at My Crypto Buddy tells me otherwise, but I can’t help being caught in my own mining-FUD. People say that having cheap electricity leaves me on a good course, but I can’t help constantly checking the rapid decline in estimated earnings at ethermine and wondering if I ever reach ROI. (Source – reddit.com/r/ethermining)

Over the next few weeks we’ll be doing a deeper dive into Ethereum mining. We’ve already discovered a number of tutorials either with outdated information or bad links so we’ll also be sharing what resources seem to have it right, and which might lead you down a path that just wastes your time and leaves you with an incomplete mining setup.

Stay-tuned, more to come!

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