The profitability of Ethereum Staking mining model depends on electricity and purchase costs

LongHash published a post saying that Vitalik Buterin’s latest proposal is to fix the annual yield of Ethereum Staking at 5%. At least 32 ETH must be pledged to become a verification node, which can earn 5% profit.

The profitability of the new ETH mining model depends on where you live and what you already own.

If you start from scratch, you need to buy 32 ETH. The cost of purchasing in early May was slightly less than $5,500; assuming that you buy a Hongji Aspire E 15 for $329 on Amazon in the United States, which consumes 30 watts of electricity per hour, the cost of running this computer in the United States for a year is about $31.5.

The total cost of Ethereum Staking for a year is about $5,810. Your profit will largely depend on the price trend of ETH. The more the ETH price rises, the less time it will take to recover the cost.

If the price of ETH reaches $300, the time required to recover the investment will be reduced to 12 years. If it returns to its historical high of nearly $1,500, the investment cost can be recovered in less than two and a half years (assuming the proceeds are cashed out to pay the bills).

Assuming you don't have enough ETH to participate in Staking without further investment, if you don't have confidence that the price of ETH will rise sharply after buying, maybe ETH Staking is not worth it. If you already hold a considerable amount of ETH, already have 32 ETH and a computer, it won't take much effort to get this profit, and it can also offset the electricity cost to the maximum extent.