The Kaspa price ended the ‘Black Monday’ day in crypto with a 7% pump and now trading above $0.063 range. Not quite bad for KAS as a crypto with one of the strongest communities globally.
However, popular YouTuber ‘Sebs‘ with over 100k subscribers on YouTube, posted a viral video focusing on issues with Kaspa mining.
What you'll learn 👉
Mining Profitability Under Pressure
According to Sebs, Kaspa mining has cooled off dramatically compared to two years ago. This decline stems from two main factors: falling coin prices and Kaspa’s unique 5% monthly emission reduction schedule that continuously cuts mining rewards. The network hash rate is now declining as miners abandon operations due to unsustainable returns.
What makes this analysis noteworthy is that Sebs typically avoids negative reviews. He felt compelled to speak out because Kaspa ASIC manufacturers are promoting new machines that his calculations show aren’t profitable. His video aims to provide clarity using real-world numbers rather than just opinions.
Sebs points to several better mining alternatives, including ALO miners (though risky), the Alphaex DG Home 1 (for Dogecoin and Litecoin), and the Ipolo Series (for Ethereum Classic). These options are more home-friendly, power-efficient, quieter, and work on standard residential power, unlike the power-hungry Kaspa ASICs.
The Hard Numbers Behind Mining Economics
The new IceRiver KS7 and KS7 Lite miners offer improved efficiency but still fail to achieve positive ROI according to Sebs’ comprehensive analysis. Using a spreadsheet developed over a year, he factored in miner costs, power consumption, emission reduction, network hash rate projections, and various electricity prices.
Even under ideal conditions with no hash rate growth and stable coin prices, these machines struggle to break even:
- At $0.15/kWh: Both miners never turn profitable
- At $0.10/kWh: Miners might profit for roughly 4 months before sliding back into losses
- At $0.05/kWh: After two years, the KS7 Lite remains approximately $800 in the red, while the KS7 stays about $3,500 short of breaking even
Perhaps most telling is Sebs’ comparison between mining and direct investment. If Kaspa’s price were to triple, mining would yield minimal profits while simply buying the coin would generate substantially higher returns. For example, investing $1,400 directly in KAS could yield around $2,800 in profits if the price triples, while mining the same amount would barely generate $32.
The core issue lies in Kaspa’s design: the 5% monthly emission reduction creates a compounding decline in revenue that miners simply can’t outpace. This monetary policy means that even as mining hardware becomes more efficient, the total rewards available keep shrinking by design.
This creates what Sebs calls “the moving target problem.” Kaspa miners starting today already face lower emissions than a year ago, and in just six months, they’ll be mining 25-30% fewer coins than currently possible due to the compounding reduction schedule.
Sebs notes that some miners may benefit from business tax incentives that make mining more viable from a tax perspective, but for average retail investors, buying coins directly typically makes more financial sense.
The analysis ultimately shows that Kaspa’s emission model works against long-term mining profitability, forcing miners to front-load their profits. Ironically, even today’s profits are negative unless you have extremely low electricity costs or are banking on significant price appreciation.
Read also: We Asked AI to Predict the Price of Kaspa (KAS) in Q2 2025
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