Ethereum update: Why mining isn’t profitable
1. Low barrier to entry- it was one of the easiest things to make money without doing much, something that is so easy will have the profits essentially drop to nothing
2. Money laundering- criminals are mining crypto to clean their money, they don’t care if they take on a small loss, this is a small price to pay for clean money
3. Coutnries mining crypto with their own resources, using government funds agencies are stockpiling crypto, they just want to obtain it for the future, profit doesn’t matter
4. Competing with all the miners with “free electricity”, whether it is rental agreements, family members house, place of business, subsidized, there are a ton of people that don’t pay for electricity.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
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