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The Facts About Ethereum Mining

Being the second most popular cryptocurrency in the world has its own benefits. Apart from the fact that everybody is talking about your coin, there are also a lot of people who want to support your network by becoming a miner of your cryptocurrency. Yes, Ethereum, being the second most popular cryptocurrency in the world has plenty of miners supporting the network. Especially nowadays in the era where cryptocurrencies slowly getting more popular than ever, it is inevitable to see Ethereum gets adopted even more by the crypto miners.

So, let’s start with the basics. Ethereum is utilizing the most common consensus algorithm called the Proof-of-Work (PoW). The same mechanism is also utilized by Bitcoin since its inception. It is a concept where miners need to use heavy computer resources to solve mathematical puzzles and get rewarded in the form of Ether (ETH) in return.

There is currently an ongoing push for Ethereum to adopt Proof-of-Stake (PoS) that they would implement in Ethereum 2.0 as soon as it hits mainnet. But considering it is still (at least) months away from Ethereum 2.0, let’s focus on the current mining mechanism of Ethereum and its PoW system.

How Many Ethereum Are Mined Per Day?

Here’s the question that most miners (or potential miners) often ask the first time they get introduced to the Ethereum world. So, how many Ethereums are mined per day? Well, there’s no single statistical answer to that question as it differs from day to day. The correct and more accurate answer would be to ask how many Ethereums are mined every year, so you can get an “average” and “estimate”.

So, basically, 18 million Ether are mined every year. On average, that is the same with 49,315 Ether mined per day. Even if you believe that Ethereum would move to Proof-of-Stake within just the next 4-5 months, keep in mind that mining Ethereum today would be a good long-term investment when the staking time has arrived for you.

Difficulty, Hash Rate, And Transactions Per Second?

Other important factors to consider before you decide to mine Ethereum are the average hash rate, difficult and TPS (transactions per second). To check the current stats, you can always go to the most popular Ethereum blockchain explorer – etherscan.io

At the time this post was written, Ethereum difficulty was at 2,229.90 TH. Ethereum hash rate was at 176,352.09 GH/s. Ethereum’s transactions per second (TPS) was at 9.9.

You might want to consider all these factors to calculate your mining profitability – or if you are just a casual Ethereum enthusiast, these numbers might also mean a lot for your future calculation of Ethereum supply.

Ethereum Supply And Its Future

Different from Bitcoin, Ethereum does not have maximum supply. Even though Ethereum central figures (i.e. Vitalik Buterin) has expressed interest in capping the max supply of Ethereum, but so far, the community hasn’t agreed to do it.

At the time this post was written, Ethereum’s circulating supply number was at 110,646,073 ETH. It is believed that Ether’s supply increase might slow down at the time Ethereum 2.0 gets implemented somewhere in the later part of this year (2020).

Ethereum Mining – And Its Long-Term Impact On The Coin

When someone comes to seek information and ask “how many Ethereum are mined per day” or other Ethereum mining facts and statistics, the only two possibiltiies are either the individual is an Ethereum miner or he wants to see Ethereum mining impact on future price action.

Here’s the truthful answer – nobody can fully predict the future of ETH price nor Ethereum mining. Yes, you can go find online tools out there to check Ethereum mining profitability calculator. But they are always based on the assumption that ETH price does not move in the next 30 days or other time period. The problem is, ETH price itself is very volatile. You cannot really know how profitable you will be in the upcoming 1-3 months because you are betting on the stability of ETH price.

The same with casual investors or traders who wants to know Ethereum mining rate. They might be able to try to predict but miners can slow down or fasten their mining operations depending on (once again) ETH price. For the reason that you cannot predict human’s psychology, you might not be able to fully calculate what ETH price will be in the upcoming months.

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