Ether mining: Success of Ethereum calls Bitcoin-Miner on the map

31. October 2018

The run on Ether, the digital currency of the Ethereum network, is in full swing. Some of the industry’s major miners are also magically attracted to the success of the new digital currency alongside Bitcoin and are preparing themselves for ether mining.

Bitcoin or ether miners bundle transactions and try to put them together in groups or blocks. Once a block has been successfully bundled or excavated, it is accepted by the network and the Miner or Mining Pool receives the digital currency in return for the computing power it has invested. Bitcoin or Ether Mining is only profitable for the miners if the power and acquisition costs of the required hardware do not exceed the price of the coins received. Some therefore refer to the mining business as resource arbitrage.

Bitcoin news enjoys growing popularity

So it is not surprising that the success of Ethereum has brought some Bitcoin miners onto the scene: Even the CEO of BitBank China, Chandler Guo, publicly acknowledged himself as Bitcoin news on Facebook:

Guo operates a gigantic Bitcoin mine in China (BTC-Echo reported). Guo also talked on Facebook about his plans for a crowdfunding campaign in which he wants to offer a 2% return on all 100,000 ethers dug by his mining rigs. Only on 12 May did Guo finish a crowdfunding campaign where he offered 14 percent of 3,500 mined Bitcoins.

The many years of Bitcoin formula mining are synonymous with a technical revolution

Ether CloudMining: Start directly with Bitcoin formula and get 3% discount on all your orders with the following code: vS2DmY Since then Guo has regularly posted images of the Chinese Bitcoin formula mine, including images of the Ether Mining rigs consisting of hundreds of graphics cards.

Guo doesn’t seem to be alone with the first ethereal mining tests. At least other greats in the industry, besides Bitcoin, are also sounding out the waters of ether mining.

It all started a few years ago with CPU mining. At that time it was still possible to calculate (dig) several Bitcoins on a single day with a home computer. Today this process with the CPU would take months or even years. After CPU mining, GPU mining with graphics cards became more and more popular. But even this computing power was not sufficient after a “short” time and the era of ASIC Mining began. Here the development is unstoppable and needs a constant update of the hardware skills.

Transactions of the Ethereum network are currently still calculated and transferred using GPU power. Just as with Bitcoin mining, there are mining pools in which the computing power is bundled in order to find the much sought-after blocks more quickly. Here there are long-term plans for a proof-of-stake method to reach a consensus in the transaction history.

Other miners have also announced their plans to mine at ETH Zurich. These include the Chinese F2Pool, which according to data from has generated the most bitcoins within the last 24 hours, and the Virginia-based mining pool BTCS. BTCS already announced a pilot project for the Ether Mine (ETH) in March.

According to Ethstats, the Ethereum network currently generates a hashrate of 2.8 terahashes per second.