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MiningTechnology

Is it worth mining Ethereum in 2021?

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Last Updated on November 6, 2021 by ViCadia

Following the announcement of a ban on Ethereum mining in China, there has been some uncertainty about numerous features of the cryptocurrency. People have been perplexed, mostly because Ethereum mining has been quite successful and continues to grow. The main question is whether Ethereum mining is dead now that the Ethereum update has been announced.

The short answer is that Ethereum mining is still alive and well. To further explain, we’ll go over Ethereum mining in general as well as some of the most often asked topics. Since Ethereum mining is still going strong, be sure to check out our list of the best mining graphics cards in 2021.

But before we delve deeper into this topic, let’s first recap what mining Ethereum actually is. As you probably already know, Ethereum is a cryptocurrency blockchain, and mining any cryptocurrency entails the verification of proofs of work performed by nodes or users all over the world. This procedure essentially adds more blocks to the network, and in exchange, miners are paid with newly created currency.

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Mining process explained

The mining process is a computationally intensive task, which means that if you have more processing power than your competitors, you may mine more cryptocurrency and mine it faster, increasing your chances of receiving the reward for confirming a specific block. Processors or CPUs, graphics cards or GPUs, or specially constructed mining circuits known as ASICs can all be used for mining.

To understand how Ethereum mining works, you must first be familiar with blockchains and cryptocurrencies in general, as well as the fundamentals of how they operate. The basic principle of mining can be understood based on the previous description of the mining process. All you need for Ethereum mining is a mining rig, which is a collection of GPUs connected to computer that is running mining software. Miners, in essence, use their time, electricity, and computing capacity to process and confirm transactions that add blocks to the blockchain, for which they are rewarded. Be sure to check out our page on how to build a cryptocurrency mining rig in 2021. This will help you fully comprehend the process of constructing a GPU mining setup and maximizing your crypto mining ability. Ethereum is a rather simple coin to mine when compared to Bitcoin.

ASIC vs. GPU mining

In these times hot issue are ASIC miners. The basic distinction between graphics cards and an ASIC miner can be found here. However, to keep things simple, ASIC miners are circuits designed specifically for mining, whereas graphics cards can do a lot more. As a result, ASIC miners are insanely faster at mining than graphics cards, but they can’t do anything else. So, both mining device have their own advantages and disadvantages. While a GPU can be used for gaming and other graphics-intensive applications, ASIC miners can only be used for mining cryptocurrencies. Another big disadvantage of ASIC miner is that it can only mine one coin, and the one for which it was created. GPUs win here because, although having much less mining power than an ASIC miner, they can mine any coin at any time.

In terms of profitability, both can be profitable depending on your mining business. This heavily depens on a variety of elements, like the temperature in your region, the cost of electricity in your mining operation’s area, your budget, and so on. When it comes to pure profit, ASIC miners are unquestionably more profitable. Because these are designed primarily for mining and can deliver very high hashrates. So, if you’re unsure whether to go with a graphics card or an ASIC miner, always go with the ASIC miners. You can quickly check the profitability of all of the ASIC miners on the market.

Ethereum vs. Bitcoin

Another point that some new miners have trouble grasping is the fundamental distinction between Ethereum and Bitcoin mining. Now, because this is relevant to our continuing conversation, we’ll address it as well.

The fundamental distinction between Ethereum and Bitcoin mining, in a nutshell, is the cryptocurrency’s algorithm. Bitcoin is based on the SHA-256 algorithm, which is the most secure and the most difficult algorithm currently available. This algorithm is also used by other coins. Ethereum, on the other hand, employs Ethash, which is based on SHA-256 but is a modified and, in terms of mining, easier cryptocurrency than Bitcoin. Apart from that, there are a few minor distinctions between Bitcoin and Ethereum in terms of long-term viability, energy footprint on the ecosystem, and a variety of other aspects.

Building a mining rig

When it comes to graphics card mining, we already stated that you should always go with multiple GPU rigs rather than a single GPU to enhance the mining capability of your mining setup. Because of the large mining farms, the competition is fierce. When it comes to mining rigs, there are a variety of possibilities. If you’re into it, you can build your own DIY setup, or you can buy pre-built mining rigs online.

When building Ethereum mining rig, there is another significant hardware requirement. This is a motherboard that can support all of the graphics cards in a mining rig (usually 5 to 7). Thanks to several Chinese manufacturers, there is a large choice of crypto mining motherboards on the market. The best motherboards for mining Ethereum in 2021 may be found here.

You don’t need much to start mining Ethereum right now. Because the Ethereum upgrade has not yet gone live at the time of writing, you can continue to mine Ethereum as usual. You can start mining Ethereum with a very modest budget and a simple GPU mining setup, but keep in mind that the profitability will be proportional to your budget and the mining rig’s power.

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Frank is the Editor-in-Chief at ViCadia. He is an avid PC gamer, as well as a tech enthusiast. Besides being a tireless writer, he is also ViCadia’s web developer.
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