Image: TheDigitalArtist (Pixabay)

Today marks one of the bloodiest and depressing days yet in the crypto market. Bitcoin, the world’s leading digital currency, has tripped below another major support level and plummeted to $18,100 at the time of this posting, a value that the coin has not seen since the early beginnings of the euphoric 2020 bull market. Whether to sell at a loss or become bag holders for what could be many years is certainly the question of the day for many investors, as the new valuation has driven immense fear in the market for reasons that include the dip going so far as to fall below Bitcoin’s all-time high from 2017. Ethereum, naturally, has followed in Bitcoin’s wake, dropping below $1,000 and prompting reports that explain why many miners can’t profit off of Ethereum mining anymore due to factors such as rising energy prices. GPU enthusiasts who haven’t warmed up to crypto as a genuine investment yet are presumably thrilled at these developments.

Image: CoinMarketCap

The average cost of electricity in states such as New England, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island is over $0.22 per kWh.

Using a single Nvidia 3090 overclocked to generate 130mh/s will cost miners around $1.85-$2.13 per day in electricity. The Ethereum reward for the same GPU is just (0.001625 ETH) $2.03 at today’s price. Therefore any miner paying more than $0.245 for electricity is now paying more for electricity than the value of Ethereum being mined.

At this point, it becomes more cost-effective to turn off the mining rig and buy Ethereum spot using the money that would otherwise be used on electricity. The profitability of mining with GPUs has been steadily decreasing over time. Ethereum is still the most profitable cryptocurrency to mine with a GPU meaning the others are even less profitable. The below graph shows Ethereum’s profitability over time.

Source: CoinMarketCap

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17 comments

  1. Great! More needs to be fired too from this cancer establishment. This could also assist in plugging this growing extreme nationalism everywhere too.

    Good riddance. Find another hustle! 🤣
  2. How many profitable at this level will hold, or will the dam break....

    Let's be honest here. All markets are down bad. You don't sell when the market is low. Not in stocks, not in crypto. You buy. And in the case of mining you keep mining and hold.

    Just like everyone said last time crypto took a big dip. Oh nooooos it's the end of btc and eth! If anyone honestly thinks btc or eth are going anywhere any time soon yall are just fooling yourselves.
  3. Oh no, what will the poor crypto Billionaires do now?

    I have a friend that still mines Eth, but he only does it at nights when electricity is free on his plan. But he's not selling any, banking it hoping it will go back up.
  4. Let's be honest here. All markets are down bad. You don't sell when the market is low. Not in stocks, not in crypto. You buy. And in the case of mining you keep mining and hold.

    Just like everyone said last time crypto took a big dip. Oh nooooos it's the end of btc and eth! If anyone honestly thinks btc or eth are going anywhere any time soon yall are just fooling yourselves.
    Normally bubbles don't work like that, more so bubbles of worthless assests. But happy to be proven wrong. I prefer the economy with the bubbles nice and fat.
  5. Normally bubbles don't work like that, more so bubbles of worthless assests. But happy to be proven wrong. I prefer the economy with the bubbles nice and fat.
    Bubbles do work like that. As has been proven with housing, stocks, crypto over and over. What goes down comes back up.

    You honestly think an asset worth $20k, with major financial institution backing, is going to completely tank to zero and go away?

    Sell me what you are smoking.
  6. I just want bitcoin to stay so low that mining with the new cards will not be worth it for a year or two. Is that too much to ask?
    It will and to compare crypto to the housing market, etc. just explains how some people are still very delusional and they HOPE that they are right. But, the facts say the opposite. Crypto is a deadly plague, and serious regulations are starting to sanction this mess everywhere and that will cause it to meet its ultimate fate sooner than later.

    Death to crypto today, no, but in the long-term (it ever reaching $60k+ highs again), well, it's toasted. Good riddance! 🎉
  7. You honestly think an asset worth $20k, with major financial institution backing, is going to completely tank to zero and go away?
    Not to zero but it can certainly get crippled and sent to a withering hell over time.

    25 years ago would you think Sears or AOL would be going anywhere?

    There are plenty of traded stocks that once had decent value that are now worthless and only worth the paper they are printed on.
  8. Let's get one thing clear, Bitcoin isn't the stock market and people treating it as such is one of the reasons it's been jacked up this past year. People are finally starting to realize that Bitcoin is here to stay and will be a dominating currency and asset in the coming years. These people are buying tons of Bitcoin but also selling because they are treating it like a stock, freaking out and selling like it has a chance to go under which ****s the market up for other unexperienced buyers. Thankfully this makes more BC available to the smart people who understand what's happening and will buy and hold. To be clear this is for Bitcoin and possibly Ethereum only. Everything else is a ****show lottery ticket.

    Another thing you are seeing here is the cleansing of the market, many **** coin platforms are being destroyed and people are starting to learn that just because it's Crypto doesn't mean it'll go somewhere. As these **** coins fail their platforms are liquidating billions in bitcoin to try to stabilize themselves which, for a little while, pushes the value of BC down. Looking ahead 18 months, this is a great thing for anyone who wants to jump in now. There is only one coin worth investing in with confidence and that's Bitcoin, everything else is a huge gamble, even Ethereum though to a much lesser extent than the rest, but like the others, should only be invested in if you understand the risk.

    If you're playing the short term, get rich quick game you'll likely lose your *** unless you really know what you are doing and can pay extremely close attention to the market (or are just super lucky) but if you have money to invest for the long term and aren't holding any Bitcoin, especially at these prices, you are a fool in which case I have a token to sell you...
  9. Let's get one thing clear, Bitcoin isn't the stock market and people treating it as such is one of the reasons it's been jacked up this past year. People are finally starting to realize that Bitcoin is here to stay and will be a dominating currency and asset in the coming years. These people are buying tons of Bitcoin but also selling because they are treating it like a stock, freaking out and selling like it has a chance to go under which ****s the market up for other unexperienced buyers. Thankfully this makes more BC available to the smart people who understand what's happening and will buy and hold. To be clear this is for Bitcoin and possibly Ethereum only. Everything else is a ****show lottery ticket.
    Ok, I'm admitted very naive when it comes to crypto

    So ... how is it not like a stock? You buy it, you hold on to it for a while, and you hope to sell it for a profit, correct?

    I guess you could say it's more analogous to investing in a foreign currency - you exchange, you hold on to it for a while, and you hope to re-exchange it for a profit because of global exchange rates. Not exactly the same thing as a stock, but pretty much the same thing as a stock... and not nearly as popular as stocks here in the US, for good reasons.

    If you want to say it's the same thing as a dominant currency - I don't think you can make that analogy. People do save cash, but more so just in order to keep it liquid. Interest rates / returns on just cash are typically much poorer than other investment vehicles. If you have your $100 bills sitting in your mattress, you are losing money, as the value of a dominant currency typically can't keep pace with the inflation rate of the economy in which they are used. You need an investment vehicle: a stock, a bond, a business, an asset, etc... if you want to make any significant return.

    If there's another perspective here, I'd love to hear it, because right now all I see is the bigger fool theory playing out, and I'm waiting to watch everyone try to cash out their tulips. I see nothing but "HODL" and "To the Moon" (not from folks here, just in general from "the crypto bros"), which don't seem exactly like solid economic strategies.

    For folks who just have their side computer on mining a bit and getting while the getting is good - nothing against that, and generally not hurting anyone in doing so. For folks dumping their entire life savings into it, or even worse, talking others into investing their life savings into, I feel pity for.

    As a side note -- I am more than happy staying out of the entire crypto ****show and letting you more experienced buyers have the market to yourselves.
  10. Ok, I'm admitted very naive when it comes to crypto

    So ... how is it not like a stock? You buy it, you hold on to it for a while, and you hope to sell it for a profit, correct?

    I guess you could say it's more analgous to investing in a foreign currency - you exchange, you hold on to it for a while, and you hope to re-exchange it for a profit. Not exactly the same thing as a stock, but pretty much the same thing as a stock...

    If there's another perspective here, I'd love to hear it, because right now all I see is the bigger fool theory playing out, and I'm waiting to watch everyone try to cash out their tulips.

    As a side note -- I am more than happy staying out of the entire crypto ****show and letting you more experienced buyers have the market to yourselves.
    All I have to say is if it is such a valuable fiat currency I'm SURE banks would give you loans with your bitcoin as collateral.. right?

    It's the same argument to a fetus being a living baby. Ok great... then make insurance companies give me life insurance in the fetus before it is born.

    Basically until it is recognized as an actual entity of material value... Meaning anyone would accept it has a value of X. Then there is no actual value and only perceived value.
  11. The correct comparison for crypto isn’t stocks - it’s beanie babies or pogs - at best. It’s Something that has value because people speculate that it’s has value. In fact, the comparison might not even be fair to beanie babies because people still had a toy when the market on those collapsed. Crypto doesn’t even do that
  12. It's the same argument to a fetus being a living baby. Ok great... then make insurance companies give me life insurance in the fetus before it is born.
    Not to get too far into the political spectrum, but I had never thought of it that way. I suppose that child support would also start then too.

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