Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Working with suppliers in different parts of the world can have many complications, such as collecting due payments, having a relevant payment language and currency, or having frequent addresses that change. You can use https://ethereumcode.app/ for a smoother trading experience with the best techniques. All these issues and more can have a resolution by using Ethereum's smart contracts.
Since the contracts are stored in the blockchain, no matter where in the world someone is located, they will be able to securely receive their payments on time regardless of how often their address changes or what payment language they speak.
It eliminates many problems that would otherwise arise from relying on manual processes for the supply chain management. Ethereum is not revolutionizing the means of global and local exchange but is also skyrocketing job opportunities in developed and developing countries. People willing to start ethereum mining want to get a glimpse of the payment scope of the business model. Let's look at how you can start ethereum mining and how much money you can earn from this process.
The global business model of ethereum mining
The global business model of ethereum mining can be segmented into two types:
1. Pre-sale purchase of equipment for cryptocurrency mining at the selling price of the cryptocurrency to be mined and sold. This activity requires a substantial initial capital investment in purchasing and maintaining equipment, including payment for electricity, software license, hardware upgrade, and repairs. In addition, Ethereum miners engaged in this activity will not earn any money for several months at best. Therefore, one must have significant savings to engage in this business model.
2. Start-up business model for ethereum mining. It is when one starts with purchasing equipment for cryptocurrency mining to go through contract negotiations and purchase electricity, software license, hardware upgrade, and repairs. The start-up business model is still in a growth period where it can earn money but less than or equal to what was spent at the outset.
Let's have a look at both types of business models:
Starting with the purchase of equipment, in this case, bitcoin mining machines, ethereum mining becomes much more severe when it comes to earning money. Except for electricity costs, which will be paid by miners regardless, other costs must be considered before making any earnings calculations.
In this case, the main costs are equipment, software license, hardware upgrade, maintenance, and repairs.
To mine Ethereum, you need a powerful graphics card (GPU), which can cost anywhere between $100 - $3000. So if you want to start ethereum mining with your own devices, you need to consider the cost of this initial investment into Ethereum, maintenance, repairs, and so on. Generally, ethereum mining needs a more powerful GPU than bitcoin mining. However, this depends mainly on the algorithm of ETH: for instance, ETHASH (used by Ethereum) is quite simple and, therefore, can be mined with a CPU or GPU without too much difference compared to one another.
How many profits can you earn from ethereum mining?
The profit that you can earn from ethereum mining depends on the following factors:
- Electricity cost is probably the most significant factor as it determines how much of your capital will be spent on electricity use.
- Ethereum mining difficulty: This measures how difficult it is to mine Ethereum. The higher the difficulty, the less Ethereum you'll get for the same amount of mining power.
- The price of Ethereum: This factor can have an indirect impact as higher prices tend to generate A LOT more interest, resulting in more miners buying hardware, increasing difficulty and reducing profitability.
- Hashrate: The speed at which you can mine Ethereum, measured in hashes per second.
With a single graphic processing unit having decent processing power, miners can earn nearly $5 per day. The processing power of the GPU plays a significant role in deciding the profitability of bitcoin. If you decide to invest a few thousand in a well-built GPU mining rig, you can easily make $100 per day from ethereum mining. The mere reason why ethereum mining is more profitable than bitcoin mining is that the ethereum mining ecosystem is not yet disrupted by the arrival of Application specific integrated circuits. To skyrocket the profitability, the miner must use the cheapest energy source available such as solar energy. Additionally, joining a mining pool will also help you earn more profits even if you don't own a powerful mining rig for ethereum mining.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.