The price of Kaspa ended the ‘Black Monday’ with a 7% pump in the crypto and is currently traded on the $ 0.063 range. It is not bad as a crypto with one of the most powerful communities globally for the muscle.
But popular youtuber ‘Sebs‘Youtube has published a viral video focusing on Kasppa mining problems with more than 100 thousand subscribers.
Mining profitability under pressure
According to Sebs, Kaspa mining It cooled significantly compared to two years ago. This decrease is due to two main factors: falling coin prices and Kaspa’s 5% emission reduction program that constantly reduces the mining rewards of Kaspa. As miners abandon the operations due to unsustainable returns, the rate of network has decreased.
What makes this remarkable analysis is that the TEBs typically avoid negative investigations. He felt compelled to talk because Kaspa ASIC manufacturers introduces new machines that they show that their calculations are not profitable. The video aims to provide clarity using the real world numbers rather than opinions.
Sebs points to a few better mining alternatives, including ALO mining (although risky), Alphaex DG Home 1 (for Dogecoin and Litecoin) and the IPOLOLO series (for Ethereum Classic). These options, unlike the power -open Kaspa ASICs, work on more home -friendly, power -saving, quieter and standard housing power.
Hard numbers behind the mining economy
The new ICERVER KS7 and KS7 Lite miners offer improved efficiency, but still cannot obtain positive YG according to Sebs’s comprehensive analysis. It was taken into account with a E -Tablo that has been developed for more than a year with miner’s costs, power consumption, emission reduction, network mixed ratio projections and various electrical prices.
Even under ideal conditions that do not have a mixed ratio and stable coin prices, even these machines are struggling to break:
- 0.15 $/kWh: Both miners never be profitable
- 0.10 $/kWh: Miners can make a profit for about 4 months before returning to losses
- 0.05 $/kWh: Two years later, KS7 Lite red remains about $ 800 in red, while the KS7 remains about $ 3,500 for a short time.
Perhaps the comparison of the Sebs that speaks the most between mining and direct investment. If the price of Kaspa rises to three times, the mining makes a minimum profit, while only buying coin will provide significant higher return. For example, directly to invest $ 1,400 directly into the muscle, the price trio can make a profit of about $ 2,800, while the same amount of mining will barely produce barely $ 32.
The main issue lies in Kaspa’s design: 5% monthly emission reduction creates a compound decrease in income that miners cannot fall behind. This monetary policy means that even if the mining equipment becomes more efficient, the total total prizes existing continue to narrower according to the design.
This creates what Sebs calls the “moving target problem .. Today, Kaspa miners are already encountering lower emissions than a year ago, and within only six months, they will mining 25-30% less metal money due to the compound reduction program.
Sebs may benefit from business tax incentives that make mining more appropriate from the tax perspective of some miners, but for average retail investors, it is often more financial logical to buy money.
The analysis ultimately shows that Kaspa’s emission model works against long -term mining profitability and forced miners to upload their profits. Ironically, even today’s profits are negative unless you have extremely low electricity costs or do not make a significant price discretion.
Read also: We asked AI to estimate the price of kaspa (muscle) in the second quarter 2025
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