Ethereum: Is Bitcoin mining profitable on a 8 core, 32 GB server with unused capacity? [duplicate]

Is Ethereum mining profitable on a 32 GB 8 core server with unused capacity?

While the world of cryptocurrency mining continues to evolve, many miners are looking for ways to optimize their hardware and increase their profit margins. A popular option is the use of a server with unused capacity to extract ether (ETH), the native cryptocurrency of the Blockchain Ethereum.

In this article, we will examine if it makes sense to extract ETH on a 32 GB 8 core server with an average daily use of the 20%CPU. We will analyze the costs associated with mining, including electrical rates and server maintenance costs. Our goal is to determine whether this configuration can generate a profit for Ethereum miners.

Understanding of the bases

Ethereum is a decentralized platform that allows developers to create intelligent contracts and decentralized applications (APPS). To extract the ether, a miner must solve complex mathematical problems using powerful processing resources.

Here are some key factors to consider when you decide whether to extract ETH on your server:

• Electricity costs : the cost of electricity varies according to the position, the hour of the day and other factors.

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• profit margins : the profit margin for Ethereum mining depends on the hash rate (i.e. on the number of calculations per second), the reward of the block (currently set to 6 ETH) and at the current price of the ‘ether.

Calculation of the hash rate

To determine if your server is profitable, we must calculate its hash rate. Assuming an average daily use of the 20%CPU, the total energy consumption of our server would be:

8 cores \ 3.2 GHz = 25.6 GHz (peak)

0.20 \ 8 hours \ 24 hours \ 3600 seconds/hour = 19.040 seconds

• Total energy consumption: about 1.9 kilowattora (kwh)

Using an estimated 2-5 Th/s (TeramoSh per second) hash, our server would require:

• 19.040 seconds/100 TH/S ≈ 190 TH/S

Mining Eth on your server

To extract ETH on the 82 GB 8 core server, we will have to estimate the amount of energy required. According to Eterscan, a popular cryptocurrency extraction pool, the daily hash rate estimated for an average miner is about 1-3 TH/s.

Assuming that the total energy consumption of our server remains at about 1.9 kWh, we can calculate the daily consumption of energy:

• 1.9 kWh / 3600 seconds (24 hours) ≈ 0.00052 Chilowattora per second

To put it in perspective, a typical family consumes about 900-1400 kWh of electricity per day.

Cost comparison

Now that we have an estimate of the energy required for our server to extract ETH, compare it with the costs associated with mining:

• Cost of electricity: about $ 0.15- $ 0.25 for kWh (avg.)

• Server maintenance expenses: take 1% of the server value per year (for example $ 10,000): $ 100 per year

Using these estimates, we can calculate our profit margins as follows:

Profit margin = (((estimated daily hash rate \ energy consumption) – cost of electricity – server maintenance expenses) / estimated daily income

• Suppose an estimated 1 Eth revenue for transaction (i.e. the reward of the block), our profit margin would be approximately $ 0.25- $ 0.50 per day

Conclusion

Based on these estimates, it seems that Ethereum mining on a 32 GB 8 core server with an average daily use of the 20% CPU may not generate profitable income for most users.

However, there are scenarios in which this configuration could make sense:

• If you are using your server as a data center or server for other purposes of non -cryptocurrency.

• If you can buy electricity at an extremely low rate (for example, through wholesale agreements or renewable energy credits).

• If you are willing to spend money on updates and maintenance to increase the hash rate.

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