In the current market, a detailed analysis of the mining income of 5600XT graphics cards

Mining fees hit a new high since February, and Ethereum miners’ income exceeds Bitcoin miners

According to data from third-party platforms, the total revenue of Bitcoin miners in February this year was approximately US$1.101 billion, while the total revenue of Ethereum miners reached US$1.342 billion, exceeding the monthly revenue of the Bitcoin network.

The average maximum transaction fee for Ethereum in February was about 0.0243 ETH/transaction ; the average maximum transaction fee for Bitcoin in February was about 0.0006 BTC/transaction . On February 23, the average daily gas fee for Ethereum reached 431.97 Gwei , a record high for the year.

Photo: QKL123

Photo: QKL123

Ethereum miners’ income source - Gas fee

One of the sources of income for Ethereum miners - Gas fees, is also related to the most controversial hot spot EIP-1559 recently.

In layman's terms, when a user needs to send or receive tokens, transfer money, etc. in a block, the computer consumes resources, and the miner packages and processes the transaction, and needs to pay the blockchain's transfer fee gas. So how is this fee calculated? The miner's fee gas is determined by the gas amount and gas price, which is the following formula?

Miner fee Gas = Gas Used quantity * Gas ​​Price

Gas literally means fuel, gasoline. This fee can be understood as the gasoline fee you need to pay when you need to start your car. The fuel fee is calculated by the amount of gasoline consumed * the unit price of gasoline. (For example, if gasoline is 30 yuan per liter, you need to pay 300 yuan to fill 10L of gasoline)

Gas Used Amount: The amount cannot be adjusted. When the Ethereum virtual machine processes a transaction, it will process each operation instruction one by one according to the operation instructions determined in the transaction. Each operation instruction has a clearly specified Gas consumption amount.

Gas Price: The price is adjustable. The gas fee is set so that the higher the price, the faster the transaction will be packaged and completed. If you want to make the transaction cost less, you can lower the gas price you are willing to pay. On the other hand, the disadvantage of lowering the gas price is that the transaction may take a long time to be packaged into the block. (Users who submit high prices will keep cutting in line)

Figure: Suggestions for setting gas unit price

https://www.ethgasstation.info/

Picture: XFX RX5600XT

Figure: Graphics card 5600XT revenue (March 4)

Appropriate payback period

According to the above statistics, the current payback period of 5600XT is about 234 days. According to the current price of 5600XT for Wayi Ba card, the price of a single card is 5000 yuan. The current value of second-hand graphics cards on Xianyu is about 2300-3000 yuan. It can be predicted that the residual value of the graphics card will be about 30%-50% in 1-2 years). For miners, only about 50%-70% of the investment needs to be recovered, and the risk of this investment will become very low.

Figure: Current Xianyu selling price

DeFi ecosystem thrives

The prosperity of DeFi projects has brought two results:

① The value of Ethereum itself is highly recognized by everyone. Decentralized finance allows everyone to see solutions that are different from traditional finance. The value of ETH, as an Ethereum token, will naturally rise, and the possibility of currency price going up will increase greatly.

②Due to the prosperity of DeFi, frequent on-chain operations have resulted in more and more ETH being consumed, and the consumed ETH will be paid to miners as mining fees, and the miners' income is also increasing. Under normal circumstances, miners can get 2 ETH rewards for each block they mine, which is about 2.2 ETH including mining fees. Now this reward has increased to more than 3, which means that the prosperity of DeFi has brought miners an additional 50% of income.

Data source: etherscan.io