I cannot give financial advice. However, I can provide some general information about Ethereum and mining equipment. Will this help?
Ethereum is a decentralized, open-source blockchain platform that allows you to write smart contracts, decentralized applications (dApps), and carry out cryptocurrency transactions. Founded in 2014 by Vitalik Buterin.
As for investing in mining equipment, you’re right to worry about exponential growth in complexity. As the power of the network grows, so does the complexity of creating new blocks, which makes it harder for miners to verify transactions and create new coins.
Here are some points to keep in mind:
- Mining is not a reliable long-term investment: In recent years, the mining industry has faced significant challenges, including increased competition from alternative cryptocurrencies (altcoins) and the rise of decentralized finance (DeFi) platforms.
- Complexity increases exponentially
: As mentioned above, the complexity of creating new blocks in the Ethereum network increases exponentially, making it harder for miners to stay afloat.
- No clear indication of when mining will become profitable: There is no clear indication of whether mining will be profitable in the near future. An increase in the level of complexity can lead to an increase in electricity costs and a decrease in the income of miners.
- Alternative cryptocurrencies offer higher potential returns
: Some alternative cryptocurrencies, such as Bitcoin Cash (BCH) or Cardano (ADA), have recently shown promising results, offering potentially higher investment returns compared to Ethereum.
- Ethereum Transition to Proof of Stake (PoS): In 2020, Ethereum began transitioning from Proof of Work (PoW) to Proof of Stake (PoS), potentially reducing energy consumption and mining costs.
Before making any investment decisions, it is extremely important to do your own research, assess your risk appetite and consult with a financial advisor.