GPU Mining is Dead

Source with my edit

GPU Mining

When Bitcoin mining started back in 2009-2010 GPU-based miners were all that was needed to complete the computations necessary to extract the new coins.

Fast forward to 2018 and Bitcoin exclusively on ASIC (application specific integrated circuit) chips that are much more powerful than the aforementioned GPUs. In order to remain profitable, ASICs are basically required.

Ethereum has avoided the ASIC inundation based mainly on the the fact that it is planning on switching from a Proof-of-Work model to a Proof-of-Stake model. This would render ASICs unnecessary and an expensive waste of money if/when the switch takes place. So for now, GPU mining has remained.

The problem is, as a blockchain progresses, the difficulty of the computations increases so the computing power being used is less effective. That means each mining rig pulls in less reward every month.

Many people who mine Ethereum also dual-mine another coin at the same time which can increase the amount of money they earn. Usually this other coin is SiaCoin, Decred, etc...

Hardware Required

In order to start GPU mining, you need to get a specialized rig for doing so. Although you could theoretically run the software on your laptop or desktop, the power required to run it will likely cost more than the pittance of Ethereum you'll get in return. Therefore, the mining rig.

Most GPU-based mining rigs have a monitor, motherboard, CPU, RAM, Hard Drive, and 6x GPU (to maximize mining and distribute the cost of the other components). It also requires things like PCI-e risers, a shelf on which to sit, additional fans, even a mouse and keyboard. Costs for all these can easily run $4000+. Just look at the cost of "cheap" 8GB GPUs on Newegg.com. They're at least $400 each!!!

To make that investment, you need to know that it's going to pay off in a reasonable amount of time. What "reasonable" means is different for everyone. However, let's look at the numbers.

The Return on Investment

For the purposes of illustration, let's look at the approximate amounts you would expect to receive for dual-mining Ethereum and SiaCoin. Let's say you're loaded with 6x MSI Radeon RX 580 OC 8GBs that you install right out of the box. You can expect a hashrate (amount of work) around 103Mh/s. Combine that with a hashrate of 1.9Gh/s for SiaCoin and you were looking at a return of approximately $250/mo after electrical costs.

What To Mine

Granted, the returns are based on the price of Ethereum and SiaCoin, both of which have been dropping the last few days, but it still shows that you should only expect ~ 1.1% of an Ethereum each day. Even if you're HODLing it until the price is back over $1,400, your raw results are not great. At that rate it would take the mining rig around 3 months to get 1 Ethereum.

Rough Math

Assuming the FUD that's running rampant subsides and the price of Ethereum rebounds, to $1,000 (it has dropped below at the time of publication), you would get $1,000 approximately every three months. This doesn't factor in the increase in difficulty of the calculations, but that still means you would get $4,000 for the year. Then subtract the $1,157 ($3.17 x 365) for electrical costs, and you have a profit of $2,843. At this rate it would take you almost 1.5 years to break even! And remember, that's assuming the difficulty doesn't increase...which it will...actually it has since you started reading this article.

As the header says, it's "Rough Math." Yes, there were two meanings for it. Good for you to catch that!

Look, here's the deal: I'm not against making money in the cryptocurrency game, I just don't think it's likely that you will make much with GPU mining. It would be great if you could, but sadly if you aren't in the game already, it's probably too late.

There are still lots of other great options out there for making money on crypto, but you'll have to look around. There are a few ASIC miners coming out this year that could change the field. For example, SiaCoin has theirs coming out in June. Day trading is also an option, but as this recent dip in the market has shown, if you're going to invest, be prepared to HODL.

I hope this was useful, helpful, or even just entertaining.

Thanks for reading and if you appreciated it, feel free to throw me an upvote, and maybe even resteem me.

Good luck in all your investing endeavors!

Have a great day!

Sources for article:
https://www.coindesk.com/ethereums-big-switch-the-new-roadmap-to-proof-of-stake/
https://bitcoiner.today/en/siacoin-will-launch-its-miner-in-june-2018/
https://www.coindesk.com/ethereum-price/