Ethereum Mining Hardware
In order to mine Ethereum, you need a powerful GPU (Graphics Processing Unit). Originally, the CPU was used for mining, but miners quickly discovered the GPU was far more efficient and effective for mining.
Finding the right GPU for mining Ethereum can be difficult. It is important to balance the power of the GPU with the cost of the GPU and the cost of electricity.
As we have seen with other popular cryptocurrencies such as Zcash, Monero, Dash, Litecoin, and Bitcoin, mining profitability is always directly related with these factors (see our guide on Ethereum mining profitability).
|Radeon R9 295 X2||46 MH/s||$600||Shop Now|
|Radeon RX 480||25 MH/s||$300||Shop Now|
|Radeon HD 7990||36 MH/s||$350||Shop Now|
Should you Mine Ethereum?
If you’re mining Ethereum only because you want to acquire cryptocurrency, it may be a better idea to just buy it.
Mining hardware is very expensive, and unless you are mining on a large scale, it’s hard to turn a profit. However, if you’re a mining enthusiast or you want to give it a shot, this article will illustrate the three best Ethereum mining GPUs.
For those looking to acquire cryptocurrency, buying Bitcoin is a better investment.
Ethereum Mining Profitability
Before you spend money on an expensive mining GPU, you probably want to know if you’ll see a good return on your investment (see our guide on Ethereum mining profitability).
Look no further. We are here to tell you that if you use the above mining GPUs, you’ll see a great return on your investment.
As you can see, the above graph shows the return on investment of the Radeon R9 295X2. As stated previously, you’ll make $276.80 USD per card each year. If you invest in multiple cards, you will make even more passive income.
While it is possible to turn a profit mining Ethereum, X11 Dash mining is FAR more profitable.
This video will teach you how to begin mining Ethereum:
Unfortunately Ethereum’s mining algorithm does not support the use of ASICs.
However, regular GPUs can be used to mine Ethereum. In 2017, Ethereum mining is quite profitable. The following GPUs can mine Ethereum and Ethereum Classic.
Below are the 3 best Ethereum mining GPUs:
Radeon R9 295X2
By far the most powerful Ethereum miner, the Radeon R9 295X2 has a hash rate of 46 MH/s, drawing 500 W from the wall. This means you’ll see a yearly return of $276.80 USD annually per card.
Radeon HD 7990
A powerful alternative to the R9 295X2, the Radeon HD 7990 has a hash rate of 36 MH/s. It consumes 300 W at max load. This means you’ll save money on power consumption. You’ll make $220.24 USD annually per card.
Radeon RX 480
Never underestimate the power of the Radeon RX 400 series. The Radeon RX 480 is not only the cheapest GPU in this list, it is also easily the most economic GPU. This card has a hash rate of 25 MH/s while only drawing 150 W at max load. You’ll make $280.40 USD annually per card.
What is Ethereum?
Ethereum is a completely different blockchain protocol than Bitcoin. Bitcoin’s blockchain is based on proof of work. Ethereum’s blockchain, although currently is based on proof of work, is soon to become based on proof of stake.
There are real figure heads who run Ethereum, unlike Bitcoin, which is owned by nobody. Ethereum also features decentralized apps. The Ethereum blockchain is the base, and other people can build decentralized blockchains on top of Ethereum.
Unlike Bitcoin, in the Ethereum blockchain, miners obtain Ether, the crypto token behind the network. Ethereum’s blockchain is its own currency.
In summary, Ethereum is a new blockchain seperate from Bitcoin with co-founders around the world. It has a different cryptocurrency which is Ether. It can be built upon using a decentralized blockchain. Above all, coming soon, Ethereum will move to proof of stake.
Benefits of Mining Ethereum
Ethereum is projected to increase in value even more than it already has. Mining is a great way to generate passive income.
Look at it this way:
When you go to work, you get paid for the hours you put in. If you work for a few hours, you’ll be paid for a few hours.
However, with Ethereum mining, if you put in a few hours of work, you’ll be paid indefinitely after that, even after you’ve stopped working.
How does this work?
That’s the beauty of passive income. Once you set up your mining rig, you’ll generate revenue all of the time, as long as you keep it on.
What are Ethereum Smart Contracts?
A smart contract is computer code that is built into the blockchain network that computers execute. Once the code is executed, the ledger is updated.
- Ethereum Mining Hardware
- Should you Mine Ethereum?
- Ethereum Mining Profitability
- What is Ethereum?
- Benefits of Mining Ethereum
- What are Ethereum Smart Contracts?
- How Will Smart Contracts be Useful in Today’s Society?
- Investing in Ethereum
- Ethereum vs. Bitcoin
Ameer Rosic uses ‘if this than that’ logic to explain smart contracts. If we create a code online on the blockchain, and someone puts money into the contract, the next action will be executed. This may be a digital contract being sent to somebody’s email, for example. This trigger may execute something else, so on and so on.
He uses a vending machine as a real life example. You input the code B6 into the vending machine. The vending machine takes this code, and then executes the code. The candy bar labled B6 is then dispensed.
This is an amazing feature of Ethereum that is unique and revolutionary.
How Will Smart Contracts be Useful in Today’s Society?
Ameer Rosic uses this example to illustrate the amazing benefits of smart contracts in the future:
Traditionally, when buying a car, you go to the dealership. Once there, you have to negotiate a price. Then you have to go to the bank and have a guaranteed check or something of that sort drafted. After that you have to go back to the dealership with this guaranteed check.
After all of this, you still have to sign all of the paperwork for the title, clear the check, etc.
This process will take a while. Imagine if instead, this whole process was on a smart contract. How is this possible?
A car could be uploaded to the blockchain. You, the customer, sees the car. You want to buy the car, and since it’s on the blockchain with a smart contract, you can buy it instantaneously. You pay with crypto, and the car is bought in real time. Everything is executed on the smart contract. You now own the title and all information about the car.
It is easy to see how revolutionary this technology is, and how crucial it is to invest in Ethereum now.
Investing in Ethereum
If you’re still reading, I imagine by now you want to invest in Ethereum. It would be a wise choice.
Many people want Ethereum but become frustrated when mining doesn’t yield the amount they had imagined.
The easiest way to acquire Ethereum and Ethereum Classic is to purchase it.
Ethereum vs. Bitcoin
Ethereum is currently the second largest cryptocurrency in the world, trailing Bitcoin. It’s been growing rapidly, seeing an increase of about 4000% this year, as opposed to Bitcoin’s growth of only 300%.
Interestingly, not only is it growing quickly, it’s also becoming more widely used.
BTC is a way to store value, but because of its fees and slow transaction times, many are turning to ETH due to its better block time and technology.
However, Bitcoin is still the #1 cryptocurrency today, and we believe it’ll stay that way.